Objects & Reasons

Listen

In accordance with Sections 6.33 & 6.36 of the Local Government Act 1995 and the Council’s intention to continue levying differential rates for the 2019/2020 Financial Year, the City is required to publish its Objects and Reasons for implementing the differential rates categories.

The overall objective of the Rates and Charges in the 2019/2020 budget is to provide for the shortfall in income required to enable the City of Kalamunda to provide the necessary works and services in the 2019/2020 Financial Year after taking into account all non-rate sources of income. The proposed differential rates reflect a 1.9% increase in overall rates revenue, with a portion of this increase being derived from growth with new properties being developed and established within the City. This increase is the lowest possible amount while still ensuring the City maintains sound financial management practices.

A minimum rate is applied to all differential rating categories within the City of Kalamunda. The setting of the minimum rate is in recognition that every property within the City 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.

Differential rates are split into two distinct groupings based on the methods used by the Valuer Generals Office to determine the value provided to the City. These two groupings are Gross Rental Value (GRV) which is used on urban properties and Unimproved Value (UV) which is predominantly used on rural properties.

Landgate has more information on the different land valuation methods on their website.

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

Gross Rental Valuation Rating Categories

Gross Rental Valuation Rating Categories
Rating Category	Minimum Rate	Rate in the Dollar (c)
GRV General The GRV General rate applies to all GRV valued properties in the City with a predominant land use that does not fall within the categories of Commercial, Industrial or Vacant Land. The City of Kalamunda’s General rate is historically lower than many of our immediate neighbours and a number of other metropolitan Local Governments. The GRV General rate is the lowest of the City’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 0.060374 with a minimum rate of $882.00 and will apply to approximately 21,320 or 93.5% of the City’s rateable properties .	$882	0.060374
GRV Commercial / Industrial The Industrial and Commercial GRV rate is levied on GRV valued properties where the predominant use of the land is for either Industrial or Commercial purposes. The City recognises that Industrial and Commercial properties have a greater impact on the infrastructure and environment within the City 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 City in order to raise additional revenue (when compared to GRV General properties) 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. The proposed rate in the dollar for this category is 0.068085 with a minimum rate of $1,102.00 and will apply to approximately 604 or 2.6% of the City’s rateable properties.	$1,102	0.068085
GRV Vacant Land The GRV Vacant rate is levied on all GRV valued land in the City where the property is considered vacant land. The City of Kalamunda has implemented the GRV Vacant differential to promote the development of land within the City and to provide a disincentive to owners for land banking. The GRV Vacant rate is levied on all GRV valued land in the City where the property is considered vacant land. The City of Kalamunda has implemented the GRV Vacant differential to promote the development of land within the City 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 City to maximise the per capita use of infrastructure and avoid dead spaces around the City. The proposed rate in the dollar for this category is 0.085609 with a minimum rate of $767.00 and will apply to approximately 589 or 2.6% of the City’s rateable properties. The lower minimum rate for this category reflects the reduced minimum services required for an unoccupied parcel of land.	$767	0.085609

Unimproved Rating Categories

Unimproved Rating Categories
Rating Category	Minimum Rate	Rate in the Dollar (c)
UV General The UV General rate applies to all UV valued properties in the City with a predominant land use that does not fall within the categories of Commercial or Industrial. This is the lowest of the City’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 0.003454 with a minimum rate of $882.00 and will apply to approximately 231 or 1% of the City’s 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 City.	$882	0.003454
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 City for infrastructure maintenance and renewal as well as monitoring land use and environmental impacts. The proposed rate in the dollar for this category is 0.004073 with a minimum rate of $1,102.00 and will apply to approximately 62 or 0.3% of the City’s 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 City.	$1,102	0.004073

Levies

Levies
Rating Category	Minimum Rate	Rate in the Dollar (c)
Waste Avoidance & Resource Recovery (All Categories) The Waste Avoidance and Resource Recovery (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 City. The Department of Water and Environment Regulation is applying stringent control over monitoring and rehabilitation practices required at these sites, and the City is experiencing significant costs each year to deal with the issue. In accordance with the Waste and Resources Recovery Act 2007, the City proposes a levy of 0.000418 on each property within the City to be calculated on the GRV value. This levy will raise approximately $507,274 in the 2019/2020 Financial Year with funds restricted to being used for remedial works on identified contaminated sites. The minimum rate set for the WARR levy is $20 on each property.	$20	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 City of Kalamunda Library.

Submissions by electors or ratepayers, in respect of the Intention to Levy Differential Rates can be submitted via the following methods:
Online: provide comments via Engage.Kalamunda
Email: enquiries@kalamunda.wa.gov.au
By Post: Chief Executive Officer, City of Kalamunda, PO Box 42, Kalamunda, 6926
Submissions closed 5pm Monday 17 June 2019.

Once Council has considered the submissions, the Differential Rates and the 2018/2019 Budget (with or without modification) will be adopted by Council.

Landgate has more information on the different land valuation methods on their website.

Objects & Reasons

Gross Rental Valuation Rating Categories

Unimproved Rating Categories

Levies

Related topics