revenue policy 2019 - 2020 - federation council · 4. waste management the local government act...

Federation Council - REVENUE POLICY 2019 - 2020 Reference: 19/18266 Version No: 1.0

REVENUE POLICY 2019 - 2020

Record No: 19/18266

Adopted: 25 June 2019


Document Title REVENUE POLICY 2019 - 2020

Council Adopted 25 June 2019

Council Resolution No 221/19FC

Version Number 1.0

Responsible Department CORPORATE AND COMMUNITY SERVICES

Date to be Reviewed Enter Review Date


Table of Contents

1. Rates ..................................................................................................................................................................... 4

2. Water Pricing ........................................................................................................................................................ 5

3. Sewerage Pricing .................................................................................................................................................. 6

4. Waste Management ............................................................................................................................................. 7

5. Waste Facility/Environmental Levy ...................................................................................................................... 8

6. Onsite Sewerage Annual Management Fee ......................................................................................................... 8

7. Statement of Borrowings ..................................................................................................................................... 9

8. Capital Works/Expenditures ................................................................................................................................. 9

9. Private Works ....................................................................................................................................................... 9

10. Fees, charges and policies (refer separate document) ...................................................................................... 10

11. Policy History ...................................................................................................................................................... 11

12. Reviews ............................................................................................................................................................... 11


1. Rates

Under the NSW Government’s rate protection commitment, total approved rate income levels that were in place prior to the establishment of the new council will continue for a further two years, this being the last year.

The 2019/20 Revenue Policy for Federation Council includes a 2.7% increase in total general rate income in accordance with the NSW Government rate peg.

Council’s 2019/2020 Ordinary/General rating revenue policy is summarised as follows:-

Rate Types Category

Former Corowa

Number of Assessments

Area Ad Valorem

Amount in Cents

Base Rate

$

Yield

$

Ordinary Farmland 634 All 0.337460 $283.50 $ 1,981,190

Ordinary Residential 5,545

All 0.373496 $ 283.50 $ 3,563,327

* Ordinary Business 521 All 0.650334 $ 283.50 $ 701,475

Total Rateable Assessments: 6,700 Total Ordinary Rate Yield: $ 6,246,992

Rate Types Category

Former Urana

Number of Assessments

Area Ad Valorem

Amount in Cents

Minimum Rate

$

Yield

$

Ordinary Farmland 507 All 0.401337 $ 132.12 $ 1,575,209

Ordinary Residential 558 All 2.28500 $ 205.66 $ 132,636

Ordinary Business 111 All 2.28500 $ 205.66 $ 52,906

Total Rateable Assessments: 1,176 Total Ordinary Rate Yield: $ 1,760,751

Farmland

For land categorised Farmland (former Corowa Shire) Council will levy an ad valorem amount of

0.337460c/$ with a base rate of $283.50 to yield $1,981,190 and for Farmland (former Urana Shire)

Council will levy an ad valorem amount of 0.401337c/$ with a minimum rate of $132.12 to yield

$1,575,209.

Residential

For land categorised Residential (former Corowa Shire) throughout the Council will levy an ad

valorem amount of 0.373496c/$ with a base rate of $283.50 to yield $3,563,327 and for Residential

(former Urana Shire) Council will levy an ad valorem amount of 2.28500c/$ with a minimum rate of

$205.66 to yield $132,636.


Business

For land categorised as Business (former Corowa Shire) Council will levy an ad valorem amount of

0.650334c/$ with a base rate of $283.50 to yield $701,475 and for Business (former Urana Shire)

Council will levy an ad valorem amount of 2.28500c/$ with a minimum rate of $205.66 to yield

$52,906.

2. Water Pricing Council's water charges are levied in accordance with the NSW State Government Best Practice

Pricing Principles.

Corowa, Howlong and Mulwala Water Charges

The 2019/2020 water access charges will increase by 2.7% on the 2018/2019 charges. Residential

water usage charges will be increased to $1.60 Kl with usage over 450 Kl at $2.35 per kl.

Access Charges are as follows:

Meter Sizes / Details 2018/19

Access Charges $

2019/2020

Access Charges $

20mm $102.33 $105.00

25mm $159.84 $165.00

32mm $261.89 $267.00

40mm $409.20 $423.00

50mm $639.38 $657.00

80mm $1,636.80 $1,683.00

100mm $2,557.50 $2,625.00

150mm $5,754.38 $5,907.00

300mm $23,017.50 $23,640.00

400mm $40,920.00 $42,024.00

Water consumption to 450 kl $1.53 per Kl $1.60 per Kl

Consumption over 450 Kl $2.30 per Kl $2.35 per Kl

Parks and Gardens Water

Water use for parks and gardens within the towns will be charged at a reduced rate of 50% of the

standard fee. This recognises the cost of production and the community benefit derived from such

use.


3. Sewerage Pricing Corowa, Howlong, Mulwala and Villages (Urana and Oaklands)

The Residential Sewerage Access Charge for Corowa, Howlong and Mulwala is to be levied at

$705.00 and for the villages of Urana and Oaklands the levy will be $630.00. The Corowa, Howlong

and Mulwala vacant land sewer charge of $564.00 provides a concession in that these properties

do not create a load on the sewer treatment works or pump stations. This is 80% of the full fee.

2018/2019

Description of Charge

$ Amount Annual for 2019/2020

Numbers

Income raised (before

pensioner rebates)

$685.41 Residential sewerage access charge (Corowa, Mulwala & Howlong)

$705.00 4,605 $3,246,525

$613.80 Residential sewerage access charge Urana & Oaklands

$630.00

335 $211,050

$548.34 Vacant sewerage access charge (Corowa, Mulwala & Howlong) NB: 80% of $705.00

$564.00 149 $84,036

Corowa, Howlong and Mulwala Non-residential/Business & Industry:

The following fees are based on best practice pricing.

Meter Sizes / Details 2018/19 Sewer Access

Charges $

2019/20 Sewer Access

Charges $ 20mm Water Service multiplied by discharge factor $402.04 $414.00

25mm Water Service multiplied by discharge factor $628.18 $645.00

32mm Water Service multiplied by discharge factor $1,029.19 $1,059.00





Cost of Waste Discharges to Sewer

$1.31/Kl multiplied by consumption & discharge factor

$1.35/Kl multiplied by consumption &

discharge factor Minimum Combined Charge $685.41 $705.00


4. Waste Management

The Local Government Act 1993 does not allow domestic waste management to be subsidised

from the general rate. All costs associated with collection and disposal of domestic waste must be

financed from a charge(s) for that purpose:

In accordance with Section 496 of the Local Government Act, 1993, Council make an annual

Kerbside Waste Charges (a)(i) and (a)(ii) for the provision of domestic waste management services

for each occupied property within the designated waste collection as detailed in the table below,

or are located outside the designated area but use the service;


Domestic Waste Management Charge (b) of $40 per annum for each vacant property within the

designated waste collection areas;


Business Kerbside Waste Charges (c)(i) and (ii) per annum for the waste management services for

each property categorised as Business in accordance with Section 493 of the Act and where those

properties are located within the designated waste collection;

That in accordance with Section 501 of the Local Government Act, 1993, Council make an annual

Rural Waste Management Charge (d) of $40 per annum for each property and where those

properties are located outside Council’s designated waste collection areas;

(a) (I) All serviced ratepayers Section 496 (user charge) –

serviced by Cleanaway – 3 bin service

5,244 services x $340 $1,782,960

(a) (ii) All serviced ratepayers

Section 496 (user charge) –serviced by private contractor –

single bin service

403 services x $300 $120,900

(b) All vacant land in serviced areas. Section

496 (user charge)

493 services x $40 $19,720

(c) (i) Business Kerbside Waste Section 501 –

serviced by Cleanaway – 3 bin service

432 services x $374.00 $161,568


(c) (ii) Business Kerbside Waste Section 501 – serviced by private contractor – single service

158 services x $330 $52,140

(d) Rural Waste Management Charge Section 501

72 services x $40 $2,880

5. Waste Facility/Environmental Levy

Council provides a Waste facility in Corowa and Howlong and a transfer station in Mulwala and in

the former Urana Shire area disposal sites with limited access at Oaklands and Urana (including

provisions for decommissioning when environmental issues occur).

The following charges will be levied under Section 501 of the Local Government Act

1993: -

Description Quantity Amount

All ratepayers 7,910 assessments x $45 $355,950

6. Onsite Sewerage Annual Management Fee

Council regulates properties with onsite sewerage management systems. This includes

maintaining a register, risk rating, inspections and monitoring against performance standards.

This management fee will be used to fund the inspection and management program.

The following charges will be levied under Section 501 of the Local Government Act

1993: -

Description Quantity Amount

Non-sewered properties with dwellings/businesses

1062 parcels x $20 $21,240


7. Statement of Borrowings

Provision has been made within the budget for the payment of principal and interest on loan borrowings.

Borrowings

Proposed external borrowings for the 2019 – 2020 Delivery Program is $4.8 million and includes:

Year Description $ Amount

2019/2020 Howlong Industrial Land $1.3 million

2020/2021 Corowa Swimming Pool $1.3 million

2022/2023 Lake Urana Project $2.2 million

8. Capital Works/Expenditures

Provision has been made within the budget for the Capital Works encompassing asset renewal,

upgrades and new works/projects.

Capital Works/Expenditures for the two years 2019/2020 to 2021/2022 Delivery Program is

$44,847,258 and is including the additional remaining merger funding provided by the NSW State

Government for the newly created Federation Council:

Year $ Amount

2019/2020 $37,021,593

2020/2021 $7,825,665

9. Private Works

"The Council may by agreement with the owner or occupier of any private land carry out on the

land any kind of work that may lawfully be carried out on the land" (S.67(1)).

Due to the unpredictable nature of costs relating to the supply of materials for Private Works

undertakings, it is not possible to develop an accurate schedule of fees and charges that would

apply for the coming twelve-month period.

“Council carries out work for external parties on private land. In performing this work

Council is generating additional income and/or acting in a community service role. Income

from these works will cover all incremental direct costs and overheads and where

appropriate add a profit element. The profit element of pricing varies with the relevant


organisations taking into account the considerations of service to the community and

general market competitiveness."

These private works include:

Kerb and gutter construction (as per fees and charges),

Road and associated works contribution,

Drainage contribution,

Water supply related works, and

Sewerage and drainage connection.

Private Work’s charges will therefore be calculated on the basis of the cost to Council (inclusive of

on-costs)/ normal market values plus a margin of 20% to cover administration and overhead costs. The

total calculated cost will be subject to GST at the applicable rate (currently 10%).

It is strongly recommended that a quotation/estimate be obtained from Council prior to

requesting/ordering Private Work’s undertakings.

Note: In accordance with Council Private Works Policy, the client is to authorise the work and agree to pay

the estimated cost prior to work commencing.

The private hire rates for each item of Council plant and fees for the supply of services and materials is

shown within the Fees & Charges 2019/2020 listing.

10. Fees, charges and policies (refer separate document)

(Provided in accordance with Section 404 of the Local Government Act 1993)

The following statement provides details of each fee and charge levied by Federation Council under the provisions of Chapter 15 Part 10 of the Local Government Act 1993. It outlines the nature of each fee or charge and the pricing policy used by Council in setting each fee or charge.

The fees and charges are presented under functional headings as provided by AAS27. Those goods and/or services subjected to GST have been identified in the attached Schedule of Fees and Charges as GST included.

Some goods and/or services supplied by Council have been declared "GST free" or are excluded under Division 81 of the legislation. For goods and/or services, which are "GST free" or excluded from GST no mention of GST appears in the Schedule of Fees and Charges.


11. Policy History

Version Date Changes / Amendments

1.0 17 May 2019 Relates to the 2 years 2019/2020 & 2020/2021

12. Reviews

Enter review schedule for the policy

NOTE: This is a controlled document. If you are reading a printed copy please check that you have the latest version by checking it on Councils Electronic Document system. Printed or downloaded versions of this document are uncontrolled.

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