Objects & Reasons

The valuations provided to the City for GRV properties are reviewed on a Tri-annual basis by Landgate. GRV values are reflective of the estimated rental yield per year of the property. Further information about the exact method of calculation and any objections to valuations will need to be directed to the Valuer Generals Office at Landgate.

The valuations provided to the City for UV properties are reviewed on an annual basis by Landgate. UV Values are reflective of the estimated market value of the land assuming no improvements have been made (Houses, Sheds, Fencing etc.) as determined by the Valuer General. Further information about the exact method of calculation and any objections to valuations will need to be directed to the Valuer Generals Office at Landgate.

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. The object of this rate category is to impose a differential rate commensurate with the use of land and is the base rate by which all other UV rated properties are assessed. The reason for this rate is to ensure that all ratepayers on Unimproved Properties make a reasonable contribution towards the ongoing maintenance and provision of works, services and facilities throughout the City.	$882	0.003533
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. The object of this rate category is to raise additional revenue to offset the costs involved in servicing properties within this rate category, which include but are not limited to major outlays for transport infrastructure maintenance and renewal/refurbishment and significant related costs of land use and environmental impacts.	$1,102	0.004180

 

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 2020/2021 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 2020/2021 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 2020/2021 Financial Year after taking into account all non-rate sources of income. Council at a Special Council Meeting on the 7th of April 2020 set the parameters to initiate the Budget 2020/21 process. One of the parameters was to have a zero increase in overall Rate revenue. This approach taken to create Budget 2020/21 is consistent with instructions received from the State Government Department, the Premier and the Minister for Local Government.

To achieve a zero increase in Rate revenue, the rate in the dollar was amended accordingly.

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. 

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

Differences in minimum rates between the differential categories is due to the same factors as explained in each differential category below:

Gross Rental Valuation Rating Categories

The valuations provided to the City for GRV properties are reviewed on a Tri-annual basis by Landgate, with 2020 being effective from 01 July 2020. GRV values are reflective of the estimated rental yield per year of the property. Further information about the exact method of calculation and any objections to valuations will need to be directed to the Valuer Generals Office at Landgate.

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 0.069352 with a minimum rate of $882.00 and will apply to approximately 21,676 or 93.4% of the City’s rateable properties.	$882	0.069352
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 0.073350 with a minimum rate of $1,102.00 and will apply to approximately 607 or 2.6% of the City’s rateable properties.	$1,102	0.073350
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 0.086309 with a minimum rate of $767.00 and will apply to approximately 598 or 2.5% 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	0.086309

Unimproved Rating Categories

The valuations provided to the City for UV properties are reviewed on an annual basis by Landgate. UV Values are reflective of the estimated market value of the land assuming no improvements have been made (Houses, Sheds, Fencing etc) as determined by the Valuer General. Further information about the exact method of calculation and any objections to valuations will need to be directed to the Valuer Generals Office at Landgate.

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 0.003459 with a minimum rate of $882.00 and will apply to approximately 282 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	0.003459
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 0.004093 with a minimum rate of $1,102.00 and will apply to approximately 55 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	0.004093

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 $515,000 in the 2020/2021 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.

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 22 June 2020.

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.

 

In accordance with Sections 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 2% 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.

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 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 $1,104.00 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. 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
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
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 City. The Department of 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 2018/2019 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: via engage.kalamunda.wa.gov.au
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 2019/2020 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