Objects & Reasons for 2016/2017

Objects & Reasons

The overall objective of the Rates and Charges in the 2016/2017 budget is to provide for the shortfall in income required to enable the Shire of Kalamunda to provide the necessary works and services in the 2016/2017 Financial Year after taking into account all non-rate sources of income. The proposed differential rates reflect a 4.54% increase in overall rates revenue, with a portion of this increase being derived from growth with new properties being developed and established within the Shire.

A minimum rate is applied to all differential rating categories within the Shire of Kalamunda. The setting of the minimum rate is in recognition that every property within the Shire receives some minimum level of benefit from services provided. By adopting a minimum rate, Council take this benefit into consideration. Differences in minimum rates between the differential categories is due to the same factors as explained in each differential category below.

Rating Information

The general rates detailed for the 2016/17 financial year have been determined by Shire on the basis of raising the revenue required to meet the deficiency between the total estimated expenditure proposed in the budget and the estimated revenue to be received from all sources other than rates and also considering the extent of any increase in rating over the level adopted in the previous year.

The minimum rates have been determined by Shire on the basis that all ratepayers must make a reasonable contribution to the cost of the Local Government services/facilities.

In accordance with Section 6.36 of the Local Government Act 1995, the Shire of Kalamunda hereby gives notice of its intention to impose differential rates in the 2016/2017 financial year.

Details of the proposed Minimum Rates and Rate in the Dollar for each rating category are as follows:

Rating Category

Minimum Rate

Rate in the Dollar (c)

Gross Rental Valuation Rating Categories

GRV General
The General GRV rate applies to all properties with a land use that does not fall within the categories of Commercial, Industrial or Vacant. The Shire of Kalamunda’s rates historically are lower than our immediate neighbours and many other metropolitan councils, with the Minimum Rate in particular being appreciably lower.
The Shire of Kalamunda’s General rate is historically lower than many of our immediate neighbours and a number of other metropolitan Local Governments with the minimum rate being appreciably lower. This is the lowest of the Shire’s GRV differentials and this rate serves as a benchmark differential rate by which all other GRV rated properties are assessed. The proposed rate in the dollar for this category is 0.056892 with a minimum rate of $865.00 and will apply to approximately 21,089 or 98.43% of the Shires rateable properties.

$865

0.056892

GRV Commercial / Industrial
The Commercial / Industrial GRV rate is levied on properties with a commercial land use. The Fire and Emergency Services Levy (DFES) also distinguishes between industrial and commercial property uses. It is noted that rate levies paid by commercial property owners are generally tax deductible
The Shire recognises that Industrial and Commercial properties have a greater impact on the infrastructure and environment within the Shire in comparison to properties that fall within the GRV General category. The object of this differential category is to apply a differential rate to Industrial and Commercial properties in the Shire in order to raise additional revenue to offset the costs associated with increased maintenance and renewal of assets and infrastructure required. By applying a higher rate in the dollar to this category, Council takes these associated increased costs into consideration. .

$1,080

0.062326

GRV Vacant Land
The GRV Vacant rate is levied on all GRV valued land in the Shire where the property is considered vacant land.
The Shire of Kalamunda has implemented the GRV Vacant differential to promote the development of land within the Shire and to provide a disincentive to owners for land banking.
This differential category reflects the disincentive to owners who are not actively developing their vacant land in order for the Shire to maximise the per capita use of infrastructure and avoid dead spaces around the Shire. The proposed rate in the dollar for this category is 0.076125 with a minimum rate of $730.00 and will apply to approximately 591 or 2.62% of the Shires rateable properties. The lower minimum rate for this category reflects the reduced minimum services required for an unoccupied parcel of land.

$730

0.076125

Unimproved Rating Categories

UV General
The UV General rate applies to all UV valued properties in the Shire with a predominant land use that does not fall within the categories of Commercial or Industrial.
This is the lowest of the Shire’s UV differentials and this rate serves as a benchmark differential rate by which all other UV rated properties are assessed. The proposed rate in the dollar for this category is 0.003157 with a minimum rate of $865.00 and will apply to approximately 236 or 1.05% of the Shires rateable properties. The minimum rate is reflective of the GRV General minimum in recognition of the comparable services received by all similar properties within the Shire.

$865

0.003157

UV Commercial
The UV Commercial rate is levied on UV valued properties where the predominant use of the land is for either Industrial or Commercial purposes.
As with the GRV Industrial/Commercial rate in the dollar, the UV Commercial differential rate is set higher than the UV General base in reflection of the increased costs to the Shire for infrastructure maintenance and renewal as well as monitoring land use and environmental impacts.
The proposed rate in the dollar for this category is 0.003729 with a minimum rate of $1,080.00 and will apply to approximately 63 or 0.28% of the Shires rateable properties. The minimum rate is reflective of the GRV Industrial/Commercial minimum in recognition of the comparable services received by all similar properties within the Shire.
The valuations provided to the Shire for UV properties are reviewed on an annual basis by Landgate.

$1,080

0.003729

Levies

Waste Avoidance & Resource Recovery (All Categories)
The WARR Levy was first adopted by Council for the 2013/2014 Financial Year. The levy has been adopted to address the long term remediation issued being experienced at closed landfill sites within the Shire.
The Department of Environment Regulation is applying stringent control over monitoring and rehabilitation practices required at these sites, and the Shire is experiencing significant costs each year to deal with the issue. In accordance with the Waste and Resources Recovery Act 2007, the Shire proposes a levy of 0.000418 on each property within the Shire to be calculated on the GRV value. This levy will raise approximately $240,000 in the 2016/2017 Financial Year with funds restricted to being used for remedial works on identified contaminated sites. There is no minimum rate set for the WARR levy.

-

0.000418

 

A statement of the Objects and Reasons for the proposed rates and minimum payments are also available for inspection at the Administration Centre during normal office hours or from any Shire of Kalamunda Library.

Submissions by electors or ratepayers, in respect of the Intention to Levy Differential Rates, should be addressed to the Chief Executive Officer, Shire of Kalamunda, PO Box 42, Kalamunda, 6926.
Submissions close 5pm 17 June 2016.

Once Council has considered the submissions, the Differential Rates and the 2016/2017 Budget (with or without modification) will be adopted by Council.

 

More information on the different valuation methods can be found on the Valuer Generals website at www.landgate.wa.gov.au

Rate this page - Was the information useful to you?
Rate this page - Was the information useful to you?
Reason for your rating *
 

Please enter the code below *