Revenue Policy 2011-12 - Wollongong City Council

REVENUE POLICY/CHARGES FOR WORKS CARRIED OUT ON
PRIVATE LAND
Council’s policy in relation to charges for works on private land arises from two different types of
activities.
1 Where work is carried out on private property by Council labour utilising materials purchased
by Council, the work is charged at full cost recovery including all administrative overheads.
2 For works requiring the clearing of land or of such other regulatory nature, Council has a policy
of employing private contractors to perform the work. Council adds to the contractor’s charges
an amount to cover the cost of overseeing the adequacy of the work performed. This amount
will be $138.00 (including GST) during the 2011/12 financial year.
Declared business activities with income earned from fees and
charges
In accordance with Pricing and Costing for Council Businesses – A guide to Competitive Neutrality, a
document published by the Department of Local Government, Wollongong City Council has declared
that the following are to be considered as business activities and these business activities have
income earned from fees and charges:
CATEGORY 1 (gross turnover greater than $2m)
Tourist Parks
The Tourist Parks’ function is concerned with the operation, management and development of
caravan parks (tourist parks) at Bulli, Corrimal and Windang to achieve the best available financial
return and the provision of a high standard amenity to park patrons and local residents. Key activities
for this function include:
• Operation of the Tourist Parks
• Maintenance of Tourist Park Grounds, Buildings and surrounds
• Marketing
• Provision of Additional Facilities and Accommodation types
The pricing method used in determining Tourist Parks’ Fees and Charges is the market pricing
method whereby fees and charges are based on current market fee structures. The market price is
usually determined by examining competitors’ prices and may have little relationship to the cost of
providing the service. It is anticipated that it will not be necessary for Council to subsidise this
business activity.
Waste Disposal
The Waste Disposal function manages the disposal of solid waste generated within the city. This
function works closely with the waste collection and recycling function to ensure waste is disposed of
in a manner which best utilises limited landfill resources. The key activities of this function are:
• Landfill management
• Environmental control
• Waste disposal depot management
The pricing method used in determining Waste Disposal Fees and Charges is the rate of return
pricing method. This is where fees are set to enable the recovery of all direct and indirect costs
involved in the provision of a service plus a profit margin. It is anticipated that it will not be necessary
for Council to subsidise this business activity.