Council wants your feedback on the proposed future rates increases in the Shire of Mundaring. Current projections show that rates increases above forecast inflation are needed to retain current services over the next four years.
If services were to stay the same, a 5% rates increase in 2017/18 would be needed. This equates to an estimated rates increase of $75 for the average residential property (which is $1500 per annum). For the following three financial years, rates would continue to increase above inflation at 4%, 3.85% and 3.8% respectively. After this period future increases are planned to be at the forecast inflation level.
Alternatively, to achieve a 3% rates increase in 2017/18, service reductions would be needed. This equates to an estimated rates increase of $45 for the average residential property. For the following three financial years, rates would continue to increase at 3%, 3% and 2.8% respectively. These projected increases are above the forecast inflation level. After this period future increases are planned to be at the forecast inflation level.
Current and proposed rates increases in 10 Year Long Term Financial Plan
|Current rates increase net of natural growth||5.00%||4.00%||3.85%||3.80%||2.50%||2.50%||2.50%||2.50%||2.00%||2.00%|
|Proposed rates increases||3.00%||3.00%||3.00%||2.80%||2.50%||2.50%||2.50%||2.50%||2.00%||2.00%|
In setting the rates, Council aims to address the challenge of being financially sustainable in the long term while continuing to provide services to the community. The Shire currently has a Financial Health Indicator of 75 compared to the benchmark of 70 (as per Department of Local Government and Communities). Any proposed changes to rates need to ensure that the Financial Health Indicator remains at the benchmark or above.
Some of the key challenges and factors to consider when establishing the level of rates increases for Shire of Mundaring include:
Providing infrastructure and services over a large geographical area with dispersed townsites and low population density.
Low level of rate growth (ie low rate of growth in new rateable properties within the Shire).
Significant bushfire risk (eg provision of bushfire preparedness and mitigation services, administration support of nine Volunteer Bush Fire Brigades).
Decreasing General Purpose Financial Assistance Grant from Federal Government (anticipate a reduction of approximately $500,000 over the next 3 financial years).
Costs to provide new services (eg Mundaring Recreation Centre at $7million construction costs - Shire contribution - and increased operating expenses of an estimated $100,000 pa).
Shifting of responsibility for services and increasing costs from State Government (eg street lighting costs, loss of vehicle licensing rebate, requirement to develop public health plan).
There is a small and limited base of commercial and industrial properties within the Shire. This limits the Shire's capacity to generate rates revenue from commercial and industrial properties rather than residential properties.
644 sq km
324 sq km
1042 sq km
rateable properties 4.
Rates as a
proportion of total revenue 3.
per GRV residential 5.
Rates on GRV
% of rates
revenue from residential 5.
% of rates
revenue from commercial / industrial 5.6.
% of rates
revenue from agricultural and other land uses 5.
annual growth in number of rateable properties 4.
Additional rates revenue from Forecast annual growth in number
of rateable properties 4.
1. ABS Estimated Resident
Population 30 June 2015
2. WALGA Local Government
4. Shire/City Budget 2016/17
5. Calculated from Shire/City
6. Commercial and industrial
property yields higher rates than residential
7. Calculated from Shire/City Annual Report 2015/16
Why do rates vary between properties?
The rate charged varies in line with the value of a property - the higher the value of the property, the higher the rates. Values are assessed on the basis of the annual rental income potential (Gross Rental Value-GRV) of each residence which is reviewed every three years by the Valuer General's Office, or on the Unimproved Value (UV) of the land (reviewed annually).
Importantly your rates notice also includes:
Emergency Services Levy, which is a State Government charge applicable to all properties in WA. This levy is invoiced and collected by local governments on behalf of the Department of Fire and Emergency Services (DFES).
Standard Rubbish Service fee which covers costs for a standard green bin, a recycling bin, a waste transfer station fee and bulk verge rubbish collection.