Rates Proposal

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

 

 

2017/182018/192019/202020/212021/222022/232023/242024/252025/262026/27
Current rates increase net of natural growth5.00%4.00%3.85%3.80%2.50%2.50%2.50%2.50%2.00%2.00%
Proposed rates increases3.00%3.00%3.00%2.80%2.50%2.50%2.50%2.50%2.00%2.00%

 

Calculate your rates increase

 

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.

 

 

Mundaring

Kalamunda

Swan

Population 2015 1.

40,015

60,830

131,738

Area 2.

644 sq km

324 sq km

1042 sq km

Length of Roads 2.

656 km

631 km

1505 km

Number of rateable properties 4.

14,588

22,602

55,604

Rates Revenue 2016/17 4.

 $26,259,031

$34,398,085

$113,723,826

Total Revenue 2016/17 4.

 $46,627,858

$56,630,446

$229,922,954

Rates as a proportion of total revenue 3.

56.3%

60.7%

49.5%

Average rates per GRV residential 5.

$1,530

$1,229

$1,332

Rates on GRV $19,651 5.

$1,530

$1,118

$1,331

% of rates revenue from residential 5.

85%

73%

54%

% of rates revenue from commercial / industrial 5.6.

12%

23%

34%

% of rates revenue from agricultural and other land uses 5.

3%

4%

12%

% Forecast annual growth in number of rateable properties 4.

0.50%

0.80%

1.30%

Additional rates revenue from Forecast annual growth in number of rateable properties 4.

$132,000

$300,000

$1,500,000

​Employee costs/per employee 7.​$90,225​$94,500$101,496​

 

Sources 

1. ABS Estimated Resident Population 30 June 2015

2. WALGA Local Government Directory 2016

3. Calculated

4. Shire/City Budget 2016/17

5. Calculated from Shire/City Budget 2016/17

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.



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