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Finance and Rating

2016/17 Annual Business Plan and Budget

Council’s challenge in framing its Annual Business Plan is to achieve the outcomes within the Plan without presenting an unrealistic rate burden on the community.

In funding the 2016/2017 Annual Business Plan, Council has limited the increase in total General Rate Revenue to 2.5%. This increase is a deviation from Council’s long term forecast increase of 4% due to the following considerations:

  • ­ Growth in new rate assessments;
  • ­ Lower than expected Local Government Price Index (LGPI) / CPI for the 2015/2016 financial year;
  • ­ Increase in the South East Natural Resource Management Levy by 213%;
  • ­ Increased spending on the renewal of Council’s existing assets;

Given this challenge, Council continues to maintain its financial sustainability and attainment of Key Performance Indicators in line with Long Term Financial objectives. Key results expected for 2016/2017 include;

  • ­An operating surplus of $471,000 and operating surplus ratio of 2%;
  • ­Debt levels are expected to decline represented by Net Financial Liabilities Ratio declining to 22% with no requirement for additional loan funds; and
  • ­Existing assets are being renewed in a timelier manner with an increase in Asset Sustainability Ratio to 89%.

In developing the 2016/2017 Annual Business Plan, Council has focussed on reviewing the organisation and in particular, the services provided and the future infrastructure requirements of the Wattle Range Council area.

For the forthcoming year economic development will continue to be a strong focus as will the finalisation of Council’s 2016 – 2020 Community Strategic Plan.

A key component of the 2016/2017 Annual Business Plan is the $5.34 Million Capital Expenditure budget. Council continues to focus on increasing asset renewals, in 2016/2017 $4.08 Million has been allocated for the renewal of a wide range of existing facilities and infrastructure. Council has also committed $1.26 Million for the upgrade and acquisition of new assets. To assist Council in funding this Capital Expenditure budget, in 2015 the Federal Government announced an increase in funding of Roads to Recovery for 2016/2017. The additional funds have been directed towards addressing the backlog of road infrastructure asset renewals.

Copies of the 2016/2017 Annual Business Plan and Financial Budget Statements are available from the Council's Millicent, Beachport and Penola Offices during normal business hours, or can be downloaded by clicking on the link below.

Annual Business Plan

Rates

Adopted Rates

Rates are set at the commencement of each financial year. Council also collects a levy on behalf of the South East Natural Resources Management Board (NRM Levy). Rates for the current financial year of 2016/2017 are:

Minimum Rate

  • Minimum - $633.00

Rate in the Dollar

  • Townships - 0.5805 cents in the $
  • Rural Living - 0.5225 cents in the $
  • Rural - 0.4354 cents in the $

Basis of Rating is Capital Value

Separate Rates

  • NRM Levy - (State Government Tax - No additional rebates apply).
Purpose of Use Category 2016/17
Residential, Vacant & Other $69.30
Commercial $122.20
Industrial $150.80
Primary Production $305.70

 

 

 

 

 

Service Charges 

  • 3 Bin Waste collection and recycling service - $316.00 (Eligible Pensioners will receive a rebate of up to $189.00)
  • 2 Bin Waste collection and recycling service - $244.00 (Eligible Pensioners will receive a rebate of up to $146.00)
  • CWMS Occupied (Southend, Penola, Kalangadoo) - $580.00 (Eligible Pensioners will receive a rebate of up to $110.00)
  • CWMS Occupied (Beachport) - $661.00 (Eligible Pensioners will receive a rebate of up to $110.00)
  • CWMS Vacant (Southend, Penola, Kalangadoo) - $434.00 
  • CWMS Vacant (Beachport) - $496.00

Refer to the Annual Business Plan for full details.

Due Dates for Payment

Rates may be paid in full or in quarterly instalments. The due dates for rate payments for the current financial year are:

  • 1 September 2016
  • 1 December 2016
  • 2 March 2017
  • 1 June 2017

A separate notice will be sent thirty days before each instalment is due. Payments may be made more frequently if desired, but please ensure that each quarterly instalment amount is met by the due date indicated on the rate notice.

Fines will be levied on overdue rates. Please see the Annual Business Plan for full details.

Any ratepayer who may, or is likely to, experience difficulty with meeting the standard payments are invited to contact the Rates Department on (08) 8733 0900 to discuss payment options.  All enquiries are treated confidentially by the Council.

Payment Options:

  • Bpay - You must be registered with your bank/credit union to use this option.
  • Phone - By credit card - telephone 1300 30 10 90 and follow directions.
  • Internet - Please click here and follow directions.
  • In Person - At the Council Offices during office hours.
  • Australia Post - At any Post Office.
  • Mail - Send the bottom portion of your rate notice together with a cheque or money order in the reusable envelope.
  • Direct Debit - Click here to access the Direct Debit Form.  Click here to access the Direct Debit Services Agreement.

Rate Concessions - From 1 July 2015, the State Government has elected to replace these concessions with a ingle "cost of living payment" provided directly to those entitled.  This payment may be used to offset Council rates.  To check elibibility, contact the Department for Communities and Social Inclusion (DCSI) Concessions Hotline 1800 307 758 or at  Concession entitlements for Community Wastewater Management Schemes (CWMS) remain unchanged.  Should you be entitled to the State Government funded concenssion on CWMS rates this will be reflected on the front of the Rates Notice.

Valuation - The capital value used by Council for your property is provided by Valuation SA. Any enquiries regarding this value should be directed to the State Valuation Office on 1300 653 345.

Single Farming Enterprise - All rural ratepayers who own and operate two or more portions of rateable land as one entity can apply to Council to be treated as a Single Farm Enterprise. Application form is available to download here.

Land Use Objection - If you wish to have your land use code reviewed an application can be made to Council for formal consideration by the State Valuation Office.  Application form is available to download here.

Change of Address - If changing address or property ownership, please advise any changes as quickly as possible by sending an email to finance@wattlerange.sa.gov.au with all the details including your daytime telephone number.

Phone (08) 8733 0900 for any other general rates queries, or email finance@wattlerange.sa.gov.au.

Long Term Financial Plan

Wattle Range Council has adopted a Long Term Financial Plan, providing details of Council's forecast financial performance over the 10 year period from 2011/2012 to 2021/2022.

The Long Term Financial Plan is driven by Council's Strategic Management Plan (Community Plan), which sets out Council's future objectives, goals and desired outcomes for the Community.

The purpose of the Long Term Financial Plan is to provide guidance to Council in formulating those future strategies and actions, by ensuring that Council are fully aware of the future financial impact of decisions made today.

The LTFP is designed as a 'high-level' summarised document, providing relevant information in relation to key performance components such as rate increases, service levels to our community, major infrastructure replacement & renewal, loan indebtedness and internal cash reserves.

Over the past 6 years Council has taken decisive action in addressing the challenges associated with long term financial sustainability through establishing appropriate financial control policies and strategies, careful management of revenues and expenditures and education of Council members and staff.

The Plan ensures that Council has the information available to pursue the implementation of the Community Plan whilst maintaining the focus on continuing to operate in a financially sustainable manner.

Long Term Financial Plan 2012-2022(1042 kb)

 

Property Valuations & General Rating Options 2009/2010

At a meeting of Council held on 14th April, 2009 a report regarding movements in property valuations and general rating options for 2009/10 was considered by Council.

The Report was prepared as a part of Council's annual budget process and in pursuit of Council's commitment to review its rating strategy, with particular emphasis on the impact of "Rate Capping", which was introduced by Wattle Range Council in 2004/05.

The rate cap was introduced to ease the burden on ratepayers who would otherwise have experienced a very significant rate rise due to a sudden "spike" in the Capital Valuation of their property, relative to other properties. Community feedback received in response to Council's Draft Business Plan & Budget in 2008/2009 indicated concerns regarding the equity of Rate Capping in recent years, and a desire for Council to analyse the implications of continuing to use of Rate Capping into the future.

It is clear that the use of General Rate Capping has served residents and Council well in ensuring that residents are not subject to large increases in rates as a consequence of "spikes" in property valuations. It is also clear that the Rate Cap has created confusion for some ratepayers who may attempt to compare Wattle Range Council's declared (official) differential "Rate in the Dollar" with that used by other Councils.

The Rate Cap has the effect of reducing the effective "Rate in the Dollar" on an individual property to which the Rate Cap has been applied, to a value which is lower than the declared (official) "Rate in the Dollar". The effective "Rate in the Dollar" is determined simply by dividing the General Rates Payable (after the Rate Cap rebate) by the Capital Value of the property. For example, a Township property (receiving a Rate Cap), with General Rates Payable of $1,359.05 and a Capital Value of $330,000 in 2008/2009, has an effective "Rate in the Dollar" of 0.4118 cents in the dollar, which is significantly lower than the declared (official) Township "Rate in the Dollar" of 0.5680 cents in the dollar.

In a similar way, misunderstanding of the effect of Rate Capping resulted in reporting of rate increases of 6% for 2008/2009, when the Rate Cap had the effect of limiting any increase to individual ratepayers to the 4% Rate Cap as applied in 2008/2009 (for properties which met the Rate Cap eligibility criteria). The additional 2% of General Rate Revenue was obtained from properties which did not meet the Rate Cap eligibility criteria, principally due to new development of changes in property ownership.

In considering potential options for future General Rating Strategies, including Rate Capping, Council needs to be mindful not only of the overall distribution of the rate burden across the Community, but also the effect of the change in General Rates payable by individual property owners from one year to the next, arising from any change in Rating Strategy.

Following consideration of the Report, Council resolved to make the Report available to the public to ensure ratepayers have an opportunity to consider the matters and data detailed within the Report. Council invites interested members of the community to consider the Report and to provide feedback on the matters raised in the Report.

Overview

The Property Valuations & General Rating Options 2009/2010 report provides a summary of the Legislative framework for Council's General Rates, details of Council's Rating Strategy over the last few years, and a discussion of potential future General Rating strategies.

No consideration has been given to changing the Basis of Rating (Capital vs Site Value, fixed charge vs minimum rate, or differential rating), as Community feedback to date has not identified specific concerns with Council's current Basis of Rating. Any change to the Basis of Rating would require significant public consultation as required under the Local Government Act 1999, and the legislative timelines for setting the 2009/2010 budget would not provide sufficient time to conduct the required consultation this year.

Four (4) future strategy options are presented, with accompanying financial model data and topographical maps showing the varying impact of the option on properties across the Council area. The options serve to demonstrate the impact of various levels of General Rate Capping that may be considered by Council for implementation in 2009/2010 and beyond, including the complete removal of Rate Capping and the retention of Rate Capping to varying degrees. Information regarding the current use of General Rate Capping by other Councils, both metropolitan and regional, is also provided for additional reference.

The financial model data presented indicates that there are ramifications with each option that need careful consideration, particularly if there is a desire to remove or quickly "wash out" the influence of the Rate Cap that has been in place since 2004/05. Those most significant impact is on property owners who have been receiving relief from large rate increases by the application of the Rate Cap, who may now experience a significant increase in General Rates payable (up to 100% or more) following the removal of the existing Rate Cap.

The report does not provide any specific recommendations as it is provided for the information of Councillors and the Community as a working document and not as a conclusive report.

Report

The Property Valuations & General Rating Options 2009/2010 report can be downloaded from the following link.

Property Valuations and General Rating Options 2009/2010 Report Property%20Valuations%20and%20General%20Rating%20Options%202009/2010%20Report (462 kb)

Supporting Information

The following page provides data showing movements in the Capital Valuation (as determined by the SA Valuer General) from 2008/2009 to 2009/2010, for properties across the Wattle Range Council area.

2008/2009 to 2009/2010 Valuation Movements

The following pages provide financial modelling results for each of the Rate Capping Options examined in the Property Valuations & General Rating Options 2009/2010 report, demonstrating the impact of each Option on the General Rates Payable for properties across the Wattle Range Council area.

Rating Option 1 (No Rate Cap)

Rating Option 2 (Aggressive 1% Rate Cap)

Rating Option 3 (Conservative 20% Rate Cap)

Rating Option 4 (Moderately Conservative 10% Rate Cap)

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Page Last Modified: 2016-05-04T14:08:01
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