Revenue Policy 2011-12 - Wollongong City Council

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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.
Health & Fitness This function is responsible for the management and upkeep of Council’s leisure centres. The key activity of this function is: • Management of the commercial leisure centres The pricing methods used in determining Health & Fitness Fees and Charges are the market, full, statutory and subsidised pricing methods. Market price is based on current market fee structures and is usually determined by examining competitors’ prices and may have little relationship to the cost of providing the service. Full cost pricing is where fees are set to enable the recovery of all direct and indirect costs involved in the provision of a service. Statutory pricing is where fees are set to comply with statutory legislation. Subsidised pricing is where fees are set at a level that recovers less than the full cost incurred in service delivery. In effect some level of subsidisation is factored into the price. It is anticipated that Council will be subsidising this business activity due to the service being provided on a less than cost recovery basis. Crematorium and Cemeteries The crematorium and cemeteries function is concerned with the provision of quality crematorium, cemetery and memorial facilities and services to the residents of Illawarra and surrounding areas, including the Sydney Metropolitan region. Key activities for this function include: • Garden Placements and Development • Grave Preparation • Operating the Cemeteries and the Crematorium The pricing methods used in determining Cemeteries and Crematorium’s Fees and Charges are a combination of the market and full cost pricing methods. Market price is based on current market fee structures and is usually determined by examining competitors’ prices and may have little relationship to the cost of providing the service. Full cost pricing is where fees are set to enable the recovery of all direct and indirect costs involved in the provision of a service. It is anticipated that council will be subsidising this business activity due to the service being provided on a less than cost recovery basis
Page 1 and 2: WOLLONGONG CITY COUNCIL WORKING WIT
Page 3 and 4: The following comments are made in
Page 5 and 6: The policy covers three categories
Page 7 and 8: Every member of this community will
Page 9 and 10: Mobile Annual Charge Estimated Yiel
Page 11 and 12: Waste Management Services Non Domes
Page 13: • In respect of kerb and gutterin

Revenue Policy 2011-12 - Wollongong City Council

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