City of Greater Bendigo Budget 2015/2016

More documents

Recommendations

Info

In order to achieve the objectives of maintaining service levels and a substantial capital expenditure program, total income from general rates will increase by 4.75%. The rates in the dollar maintain the existing approximate differential between the various rate categories as follows: % of General Rate Farm Rate 85% Commercial/industrial A 185% Commercial/industrial B 180% Commercial/industrial C 190% Vacant land (residential and rural residential) 125% Other land 185% Waste collection charges are reviewed annually to cover additional waste management costs including increases in the EPA Landfill Levy. The garbage charge for residential properties will increase by 2.22% for 120/140 litre bins to $138 and by 2.59% for 240 litre bins to $238. Recognition has been made for an estimated $1 million refund of carbon tax paid due to the carbon tax legislation being repealed. For all properties levied a garbage charge in the 2014/15 year, a one off $20 (per garbage bin) carbon tax refund will be applied. The recycling charge will increase by 4.88%. Total rates and charges of $99.42 million, including $1.64 million in supplementary rates will be raised. 9.3 Rating Structure City of Greater Bendigo has established a rating structure which is comprised of three key elements. These are: • Property values, which reflect capacity to pay • A user pays component to reflect usage of waste collection services provided by City of Greater Bendigo • A user pays component to reflect usage of recycle waste collection services provided by the City of Greater Bendigo In establishing this rating structure, City of Greater Bendigo has taken account of section 3C(1) of the Act – “The primary objective of a Council is to endeavour to achieve the best outcomes for the local community having regard to the long term and cumulative effects of decisions” and section 3C(2)(f) requires Council must ensure the “equitable imposition of rates and charges”. City of Greater Bendigo has had regard to the Ministerial Guidelines for Differential Rating as required by section 161(2A) of the Act. The City of Greater Bendigo makes a further distinction within the property value component of rates based on the purpose for which the property is used to assist in achieving the objective of equity, efficiency and simplicity, in order to meet its obligations under the Act. The rating structure comprises a general rate and three broad differential rates being commercial/industrial, farm, residential and rural residential vacant land together with an ‘other land’ differential rate to capture any property use not specifically covered in the four rate categories, and a rate concession for recreational land levied under the Cultural and Recreational Lands Act. A detailed description of the general rate and each differential rate is included in Appendix B of this document. 50 Greater Bendigo City Council Budget – 2015/16
The commercial/industrial properties are divided into three differential rates based on geographic locations. The three commercial/industrial rates, the vacant land rate and the other land rate are higher than the general rate and the farm rate is lower than the general rate. These rates are structured in accordance with the requirements of Section 161 of the Act. Under the Cultural and Recreational Lands Act, provision is made for a Council to grant a rating concession to any recreational lands which meet the test of being rateable land under the Act. Differential rates were introduced by City of Greater Bendigo in 1995. No significant alterations have been made to the rating structure since 1995 and given the rates collection rate of in excess of 97%, the lack of submissions made in relation to the rating structure from Annual Budget to Annual Budget and Council re-affirming in its Rating Strategy review carried out in 2011 that the rating structure meets Council’s objectives together with complying with the Act, no further consultation with ratepayers has occurred. In compiling the 2011 Rating Strategy review, Council considered whether the degree of differentiation between the rate categories supported the three principles of benefit, capacity to pay and incentive to be supportable and reaffirmed its decision that the general rate and the five differential rates levied achieve the objectives of equity, efficiency and simplicity. Striking a proper balance between these elements provides equity in the distribution of the rate burden across ratepayers, which allows the efficient carrying out of the functions of Council compared to the use of a uniform rate. The result is an equitable distribution of rates across sectors with the aim of optimal flexibility in collection of rates to deal with changing needs within the wider community. These distinctions are based on the concept that commercial/industrial properties should pay a fair and equitable contribution to rates, taking into account the benefits those businesses derive from the local community, the services Council provides and their ability to pay. The three levels of commercial/industrial differential rates, based on locality within the municipality, take into account the differing levels of service provided by Council to commercial/industrial properties in each locality. Vacant residential and vacant rural residential land are levied a rate higher than the general rate to encourage development of such land. Council has determined rates and charges in respect of farming properties should take account of the restricted access to many City of Greater Bendigo services and are appropriately discounted to the general rate. The farm rate generates 2.77% of rates, and Council has determined that the 15% concession in the rate in the dollar to the General Rate for the Farm Rate does not create any adverse effect to the other six rate categories. The farm rate is set at 85% of the general rate and the reasons for the use and the level of a farm land differential rate are: • To encourage the continuation of farming pursuits on rural land in support of the strategic objective to support the economic development of the agricultural sector; and • In recognition that the size of the landholding required to conduct a farm business is far greater than other non-farm businesses with similar turnover and (pre-tax) profitability. Therefore farms, in comparison, have a higher valuation and would pay higher rates if a lower differential was not applied; and • In recognition that farm businesses profitability is affected by weather which means that their income is more susceptible and fragile than other businesses Council has considered the Ministerial Guidelines for Differential Rating and has decided to introduce an ‘Other’ differential rate to capture any property use not specifically captured by the existing general and differential rate types. Council has determined not to introduce a differential rate for retirement villages. reasons for this are as follows: Council’s Greater Bendigo City Council Budget - 2015/16 51
Page 1 and 2:
City of Greater Bendigo Budget 2015
Page 3 and 4: TABLE OF CONTENTS Page Mayor’s In
Page 5 and 6: Mayor’s Introduction, Cr Peter Co
Page 7 and 8: 3. Cash and Investments 50.00 48.15
Page 9 and 10: 7. Strategic objectives 50.0 strate
Page 11 and 12: 1. Linkage to the Council Plan This
Page 13 and 14: 1.2 Vision and Values Council Visio
Page 15 and 16: 2. Services, Initiatives and Servic
Page 17 and 18: 4) Employ additional payroll staff
Page 19 and 20: 2.3 Theme 3 - Presentation and Vibr
Page 21 and 22: 18) Implement the Inclusion and Div
Page 23 and 24: Initiatives Services Group to assis
Page 25 and 26: 34) Develop an Environmental Sustai
Page 27 and 28: 3. Budget Influences This section s
Page 29 and 30: • The growing urban area means th
Page 31 and 32: To support requirements for new inf
Page 33 and 34: 100,000 Rates & Charges Income Comp
Page 35 and 36: Community Welfare 344 350 6 Materna
Page 37 and 38: Budgeted expense 2015/16 Borrowing
Page 39 and 40: 5. Analysis of Budgeted Cash Positi
Page 41 and 42: 5.1.4 Cash and Cash Equivalents at
Page 43 and 44: Budgeted Capital Works 2015/16 by A
Page 45 and 46: 6.2.1 Grants - Capital ($14.17 mill
Page 47 and 48: 7.1.1 Current Assets ($1.88 million
Page 49 and 50: 8. Strategic Resource Plan and Fina
Page 51 and 52: 8.3 Key Financial Indicators The fo
Page 53: 9. Rating Information This section
Page 57 and 58: An additional recycle bin is availa
Page 59 and 60: • Infrastructure investment decis
Page 61 and 62: Appendices The following appendices
Page 63 and 64: APPENDIX A Comprehensive Income Sta
Page 65 and 66: APPENDIX A Statement of Changes in
Page 67 and 68: APPENDIX A Statement of Capital Wor
Page 69 and 70: APPENDIX B Appendix B - Rates and C
Page 71 and 72: APPENDIX B 1.3 The proposed percent
Page 73 and 74: APPENDIX B 1.9 The proposed unit am
Page 75 and 76: APPENDIX B 2. Rates 2.1 Rates to be
Page 77 and 78: APPENDIX B General Rate Land is any
Page 79 and 80: APPENDIX B The differential rate wi
Page 81 and 82: APPENDIX B a. Assist Council to mee
Page 83 and 84: APPENDIX C Appendix C - Capital and
Page 85 and 86: Capital Works Area Project Descript
Page 87 and 88: APPENDIX C Capital Works Area Proje
Page 95 and 96: APPENDIX D Appendix D - Maps D - 1:
Page 97 and 98: APPENDIX D D - 2 COMMERCIAL/INDUSTR
Page 99 and 100: APPENDIX E Non-Renewal Business Cas
Page 101 and 102: APPENDIX E Part C: Deliverability T
Page 103 and 104: APPENDIX F City Futures Fees and Ch
Page 105 and 106:
APPENDIX F City Futures Fees and Ch
Page 107 and 108:
APPENDIX F City Futures Fees and Ch
Page 109 and 110:
APPENDIX F Community Wellbeing Fees
Page 111 and 112:
APPENDIX F Community Wellbeing Fees
Page 113 and 114:
APPENDIX F Planning & Development F
Page 115 and 116:
Page 117 and 118:
Page 119 and 120:
Page 121 and 122:
APPENDIX F Presentation & Assets Fe
Page 123 and 124:
Page 125 and 126:
Page 127 and 128:
APPENDIX G Appendix G - Glossary of
Page 129 and 130:
APPENDIX G Term Local Government (P
show all

City of Greater Bendigo Budget 2015/2016

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?