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Late Items

 

Council  Agenda

 

 

 

12 August 2015

 

 

 

 

 

ALL INFORMATION AVAILABLE IN VARIOUS FORMATS ON REQUEST

 

 

 


CITY OF BUSSELTON

Late Items FOR THE Council  MEETING TO BE HELD ON 12 August 2015

TABLE OF CONTENTS

 

ITEM NO.                                        SUBJECT                                                                                                                              PAGE NO.

14..... Finance and Corporate Services Report. 3

14.3        ALTERATION TO MEMORANDUM OF IMPOSING RATES AND CHARGES 2015/16. 3

 


Council                                                                                      3                                                                    12 August 2015

14.             Finance and Corporate Services Report

14.3           ALTERATION TO MEMORANDUM OF IMPOSING RATES AND CHARGES 2015/16

SUBJECT INDEX:

Fees and Charges

STRATEGIC OBJECTIVE:

Infrastructure assets are well maintained and responsibly managed to provide for future generations.

BUSINESS UNIT:

Corporate Services; Finance  

ACTIVITY UNIT:

Finance

REPORTING OFFICER:

Director, Finance and Corporate Services - Matthew Smith

AUTHORISING OFFICER:

Chief Executive Officer - Mike Archer

VOTING REQUIREMENT:

Absolute Majority

ATTACHMENTS:

Nil

  

 

PRÉCIS

 

The purpose of this report is to propose a small alteration to the Memorandum of Imposing Rates and Charges 2015/16 in respect of the Waste Collection costs.  It is proposed to change the manner in which Waste Infrastructure Charge is collected.  This will not result in any change to the amount of $88 which will be charged on a “per household” basis.  The overall amount of money to be collected and what it will be used for will also remain the same.

 

 

BACKGROUND

 

At a Special Meeting of Council on 23 July, 2015, the Council adopted its 2015/16 budget and specifically the general rates, differential rates, specified area rates and minimum payments,

along with other charges, impositions and concessions as specified in the Memorandum of

Imposing Rates and Charges 2015/16.  The Memorandum included a series of Waste Collection Charges made up of a Waste Infrastructure Charge and other charges for collection services.

 

It is now proposed that the Waste Infrastructure Charge, which was shown separately to apply to all rateable properties, be formally imposed as a rate under section 66 of the Waste Avoidance and Resource Recovery Act (WARR Act).   The rate in the dollar will be set at such a level that the minimum rate will apply to all properties within the district of the City.  The minimum rate is proposed to be set at $88.  Thus in effect this rate will operate in the exact same way as the current Waste Infrastructure Charge. 

 

STATUTORY ENVIRONMENT

 

The rate is proposed to be imposed in accordance with section 66 of the WARR Act, which states that a local government may impose on rateable land within its district an annual rate for the purposes of providing for the proper performance of all or any of the waste services it provides.  The level of rate proposed is consistent with section 66(2) of that Act. 

 

Section 66(3) of the WARR Act makes the provisions of the Local Government Act as they relate to the making, payment and recovery of general rates applicable to rates set under the WARR Act.  It is for this reason that it is intended to impose the rate as part of the Memorandum of Imposing Rates and Charges for 2015/16. 

 

FINANCIAL IMPLICATIONS

 

There are in effect no financial implications to the City, or indeed to its ratepayers, associated with the change in methodology of imposition of this waste infrastructure related fee.  The cost per rateable property of the rate will be the same as the amount which was proposed to be charged as part of the Waste Infrastructure Charge, being $88 per property.  Therefore the amount collected by the City as a result of the imposition of this rate will also be the same.  The proposed use of that money remains the same, being to fund waste infrastructure costs to the City.

 

STRATEGIC COMMUNITY OBJECTIVES

 

Key Goal Area 2

2.3 - Infrastructure assets are well maintained and responsibly managed to provide for future generations.

 

CONSULTATION

 

Information regarding the waste rate will be included with the Rates Notice.

 

OFFICER COMMENT

 

The rate proposed under section 66 of the WARR Act is in effect equivalent to the existing Waste Infrastructure Charge.  In order to be applicable to all rateable properties in the district as was the case with the Waste Infrastructure Charge, it is necessary that separate rates be set in relation to Gross Rental Valuation (GRV) and Unimproved Valuation (UV) properties within the district.  The rate in the dollar in respect of GRV properties will be 0.001 cents and the rate in the dollar in respect of UV properties will be 0.0005 cents.  In both cases the minimum rate will be $88 and this is the amount which all households will be required to pay.

 

What is proposed is purely a change in methodology of setting the fees the City intends to collect in respect of waste infrastructure.  As the amount to be paid will remain the same there will be no impact on ratepayers of the City as a result of this change in methodology.

 

OPTIONS

 

Not applicable.

 

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

 

The decision will be implemented with the finalisation of the Rates Notices within 7 days of the Council Decision.

 

OFFICER RECOMMENDATION

ABSOLUTE MAJORITY DECISION OF COUNCIL REQUIRED

 

That the Council revokes the 2015/16 Waste Infrastructure Charge of $88 as shown in the 2015/16 Budget, and the associated description of the charge, and replaces it with the following:

 

Waste Infrastructure Rate                                                                         Rate in the Dollar – GRV 0.001c
                                                                                                                                Rate in the Dollar – UV 0.0005c

Charged per annum for all rateable properties to fund significant waste infrastructure due to increasing environmental licensing requirements.  Will also be used to increase recycling activities to reduce waste to landfill.

Minimum Payment

A minimum payment of $88 per property will apply to all rateable properties in the District.

                                                                                                                Expected total annual yield: $1,959,550