Rates - some facts and figures
sue August 31st, 2008
This is a response to a rate payer enquiry and I thought the content is worth sharing.
Review of Rating Structures
Under the transitional provisions legislation Council has until 30 June 2012 to implement a single rating structure for the newly formed Fraser Coast Regional Council. During this period Council is able to continue to make and levy rates in the same way as the predecessor merged Council’s ie Hervey Bay, Maryborough, Woocoo and Tiaro.
In early May Council considered those sections of the four existing rating policies that would be tandardised for the 2008/09 year across the Fraser Coast with the remaining sections to be standardised during 009/10.
Due to the limited time available post amalgamation to undertake a comprehensive review of existing general rate structures and to develop a standard structure across the Fraser Coast this was deferred to the 2009/10 year.
For 2008/09 the following charges and sections were standardised -
1. Environmental Levy
2. Waste Management Levy
3. Cleansing Charges
4. Rural Fire Levy
5. Rebates and Concessions
6. Discount on Rates
7. Issue Rate Notice Issues
8. Water Billing Cycles
The following items are to be considered for standardisation for the 2009/10
rating year -
1. General Rates;
2. Water Charges and Consumptions; and
3. Sewerage Charges.
In this respect all existing general rate categories have remained the same as per the predecessor Council’s general rate structure for the 2008/09. In addition although land valuations have been undertaken across the Fraser Coast, all properties will remain in the same category they were in last year irrespective of any change in valuation.
Council will be commencing a review of the general rate structures in the near future with a view to implementing a single rate structure for 2009/10. As you have noted in your correspondence there are large variances in the existing structures and this process will be a massive exercise with over 48 land categories, minimum generals ranging from $516 to $2,610 and c/$ ranging from 0.40317 to $1.09.
Rate Rise
Council determines through its budget deliberations how much it costs to provide services and nfrastructure to the community and the amount required to be raised in rates. To fund the 2008/09 budget a 7.00% increase in General Rates was required.
Council determines through its budget deliberations how much it costs to provide services and infrastructure to the community and the amount required to be raised in rates. To fund the 2008/09 budget a 7.00% increase in General Rates was required. The 7.00% increase published in the media related to General
Rates and does not take into consideration fluctuations in land valuations or increases associated with user charges. The Mayor’s Speech highlighted this “The budget delivers a modest general rate rise of 7% which is comparable to other Local Authorities ranging from 6.90% up to 11%.”
As provided in attachment a the estimated rates assessment comparison for this property as a result of the new Fraser Coast Regional Council’s rating policy shows a net increase in rates 10.81% (excluding water consumption charges) if paid within the discount period. The attachment also provides a comparison of the increase in net rates for this property since 2004/05 to 2008/09 a total 11.23% (an average increase of 2.81% per annum).
Land Valuations
The Department of Natural Resources and Water issued new valuations to take effect on 1 July 2008, overall average land valuations across the region increased by 55% in Woocoo, 9% in Hervey Bay, 52% in Maryborough and 68% in Tiaro.
All Fraser Coast properties are now valued on comparative market area principals that will facilitate a single General rate structure for 2009/10. When valuations occur there is often confusion or the misconception in the community that if land valuations increase by 50% their rates will also increase by 50% resulting in Council receiving an additional 50% in rates revenue. This is incorrect as the c/$ applied to the new land valuation will decrease. For instance in relation to your property the land valuation has increased from 59,000 to 89,000 a 30% increase however your Gross General Rates has increased by 4.40% (not proportional to the land valuation increase).
Unfortunately Council is bound by the Local Government Act to use the land valuations provided by the Department of Natural Resources and Water as the mechanism for calculating and distribution of its General Rates across all ratepayers. The Council sets the c/$ or minimum general rates and uses the land valuations as the multiplier.
Pensioner Remissions
Council recognises the financial challenges that rising fuel prices and interest rates are having on the household budget. To minimise the impact on pensioners, Council is providing more than $1.4 million in concessions to the region’s 9,800 pensioners with all pensioners eligible for a $150 concession.
This equates to a 6% increase in pensioner concessions. This concession is in addition to the State Government Pension Concession, for which pensioners can also apply. While the introduction of a flat rate pensioner concession across the region will result in individual increases and decreases for pensioners Council has adopted the State Government approach to pensioner concessions. Pensioners living in and owning their own home and property, who are holders of a Queensland “Pensioner Concession Card” issued by Centrelink or the Department of Veteran’s Affairs, or a Queensland “Repatriation Health Card”,Council allows, on payment, a Pensioners’ Remission of $150.00 (Married or Single).
The State Government Pensioner Subsidy Scheme allows, on payment, a 20% Remission on Rates and Charges and the Urban Fire Levy. (Maximum allowable $180.00 Rates and Charges - $29.36 Urban Fire Levy per annum).
Payment Options
Councils recommends that ratepayers on fixed incomes consider prepayment utilising either the Direct Debit facility available to Maryborough residents or by the ratepayer making regular payments in person, by phone or internet as detailed on the reverse of the 2008/09 Annual Rates Notice.
In developing the budget Council was cognisant of the current economic climate with rising fuel prices and interest rate hikes and the impact on the community. Council was also faced with the challenge brought about by the amalgamation and reform process of developing an equitable basis for distribution of the rates burden whilst moving forward positively to develop a single rating structure for the Fraser Coast.
Council developed the budget within significant financial constraints with spiralling construction and material costs and the additional costs associated with amalgamation.
If you wish to discuss any of the responses in this correspondence please do not hesitate to contact Council’s Rates Department on 1800 881 400. More information is also available on Council’s website
www.frasercoast.qld.gov.au
We trust that this information is of assistance to you.
Yours faithfully,
Lisa Desmond
Director Organisational Services