The following rating principles are proposed in this Statement of Objects and Reasons for the 2017/18 rating year:
- Gross Rental Values apply to the following differential general rate categories; Residential, Commercial/Industrial, City Centre and Heavy Industry
- Unimproved Values apply to the following differential general rate categories; Farmland, UV General and UV Commercial
- Properties are rated according to the Town Planning zoning and/or predominant use of the land with each having a separate calculated rate in the dollar to achieve greater equity across all sectors
- Gross Rental Values (GRV) are re-valued every 3 years with the 1st July 2017 being revaluation year
- Unimproved Values (UV) are re-valued annually
- Gross Rental Values and Unimproved Values are determined by the Valuer Generals Office
- The City has utilised the current values provided by the Valuer General Office as at 2 May 2017 to determine the total rates revenue per differential rate type based on the proposed 3% increase on the 2016/17 rate in the dollar. Based on this proposed rates revenue, the City has recalculated the rate in the dollar utilising the new values provided by the Valuer General
- The proposed rates model will yield approx. $120.8 million in total rate revenue, this figure is inclusive of ex-gratia rates, interims and write offs
- As in prior years, 3% of the rate revenue will be allocated to Infrastructure Asset Replacement Reserve
- It is proposed to continue with Specified Area Rates “Midland Drainage District and Hazelmere/Guildford Drainage District”
- It is proposed to continue with Specified Area Rates “UV – Hazelmere Industrial Roads and Drainage” and “GRV – Hazelmere Industrial Roads and Drainage”
- Proposed to keep the 2017/18 minimum rates the same as 2016/17
The overall objective of the proposed rates in the 2017/18 Budget is to provide for the net funding requirements of the City’s expenditure, after taking into account all other forms of revenue.
The formulation of a rating system is about achieving a means by which Council can raise sufficient revenue to pay for the services it provides. Throughout Australia, the basis of using property valuations has been found to be the most appropriate means of achieving rating equity; however, the achievement of a wholly equitable rating system for all properties, in all areas, is a difficult task if it is based on the property valuations alone. For this reason there is refinement options made available, such as differential rating, which the City of Swan has elected to use.
Average Residential rates for the last 4 years comparison with the City of Wanneroo…