Rating Strategy 2016/17 - moyne.vic.gov.au · The 2016/17 Rating Strategy was developed in accordance with the provisions of the Local Government Act ... Through this process of review

Moyne Shire Council

Rating Strategy 2016/17

Moyne Shire Council Rating Strategy - Final Report 11042016

DOCUMENT CONTROL

CT Management Group P/L PO Box 1374 GEELONG VIC 3220

Mobile: 0418 107 304 Email: [email protected] Web: www.ctman.com.au

Document: Moyne Shire Council Rating Strategy - Final Report 11042016

Project Manager: Michael Courtney

Author: Michael Courtney

Date: 14/04/2016

Synopsis: Rating Strategy 2016/17

CONSULTANTS DISTRIBUTION SCHEDULE

Version No. Date Distribution Reference

01 24/03/2016 Craig Ralston, David Madden Moyne

02 14/04/2016 Craig Ralston, David Madden Moyne

SCHEDULE OF ADOPTION

Version No. Date Comment Reference

© CT Management Group Pty Ltd 2016 Except as provided by the Copyright Act 1968, no part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means without the prior written permission of the publisher.

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CONTENTS

1. INTRODUCTION ............................................................................................ 5

2. BACKGROUND .............................................................................................. 5

3. WHAT IS A RATING STRATEGY? ...................................................................... 6

4. HISTORICAL REVIEW ..................................................................................... 7

4.1 Rating Strategy 2005 .............................................................................................. 7

5. PRINCIPLES - 2016/17 RATING STRATEGY ........................................................ 7

6. 2015/16 Rates and charges ........................................................................... 8

6.1 Introduction .......................................................................................................... 8

6.2 Benchmarking – Large Councils Victoria ................................................................... 9 6.2.1 Rates as a percentage of total adjusted revenue ............................................... 9 6.2.2 Rates and charges per assessment .................................................................. 10 6.2.3 Rates and charges per residential assessment ................................................. 10 6.2.4 Rates per capita ............................................................................................. 11

7. LEGISLATIVE REVIEW.................................................................................... 12

8. Options - RATING STRATEGY 2016/17 ............................................................ 14

8.1 Introduction ........................................................................................................ 14

8.2 Current property categories .................................................................................. 14 8.2.1 Introduction ................................................................................................... 14 8.2.2 Residential properties .................................................................................... 14 8.2.3 Farm properties .............................................................................................. 14 8.2.4 Commercial and Industrial properties ............................................................. 15 8.2.5 Rural Life ........................................................................................................ 15 8.2.6 Power Generators and Wind Farms ................................................................. 15

8.3 Philosophy of Differential Rating ........................................................................... 15 8.3.1 Equity ............................................................................................................ 15 8.3.2 Capacity to pay ............................................................................................... 16 8.3.3 Options 1 to 13 considered by Council ............................................................ 17 8.3.4 Base case – Current Rate Structure 2015/16 ................................................... 17 8.3.5 Municipal Charge ........................................................................................... 18 8.3.6 Farm Rate....................................................................................................... 18 8.3.7 Commercial and industrial .............................................................................. 19

9. CONCLUSION ............................................................................................... 19

10. APPENDIX A: Options 1 – 13......................................................................... 20


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LIST OF FIGURES

Figure 1: 2014/15 Comparisons Rate in the Dollar and Municipal Charge .................................. 5 Figure 2: Rate in the Dollar Comparisons 2014/15 .................................................................... 6 Figure 3: Type of Rates and Charges ........................................................................................ 8 Figure 4: Table of Rates and Charges 2015/16 Budget .............................................................. 9 Figure 5: Rate Revenue/Total Adjusted Revenue - History ...................................................... 10 Figure 6: Rate Revenue/Total Adjusted Revenue – Large Rural ............................................... 10 Figure 7: Rates and Charges per Assessment - History ............................................................ 10 Figure 8: Rates and Charges per Assessment – Large Rural ..................................................... 10 Figure 9: Rates and Charges per Residential Assessment - History .......................................... 11 Figure 10: Rates and Charges per Residential Assessment – Large Rural ................................. 11 Figure 11: Rates per Capita - History ...................................................................................... 11 Figure 12: Rates per Capita – Large Rural ............................................................................... 11


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1. INTRODUCTION

The Rating Framework is legislated in the Local Government Act 1989 (as amended) and determines Council’s ability to develop a rating strategy. Moyne Shire Council determined to complete a rating strategy to review the equity and fairness of the existing rating system.

Good governance requires Council to evaluate whether the current rating system best satisfies the legislative objectives to which it must have regard and other Council Plan objectives that Council believe are important.

The 2016/17 Rating Strategy was developed in accordance with the provisions of the Local Government Act 1989 (as amended) for implementation to apply from 1 July 2016 and subsequent years.

Through this process of review of the significant issues, a contemporary rating strategy with rates and charges recommendations was formulated for Council to consider as part of the 2016/17 Budget.

2. BACKGROUND

Council acknowledges the existing rating framework is imperfect, however an alternative model is not available to Council under the provisions of the Local Government Act 1989 (as amended). Moyne Shire Council’s current rating system is comprised of two elements:

A property tax with individual properties value multiplied by a uniform tariff ; and

A municipal charge to cover the administrative costs of Council.

Moyne Shire Council has the lowest rate in the dollar in the large Council region in Victoria and did not levy differential rates in the 2014/15 financial year:

2014/15 Comparisons Rate in the Dollar and Municipal Charge

Council Residential Commercial Farm Average Municipal

Charge

Moyne Shire 0.002182 0.002182 0.002182 0.002182 $230.00

Surf Coast 0.002413 0.004585 0.001810 0.002936 $185.00

Corangamite 0.003413 0.003413 0.003209 0.003345 $176.40

Mitchell 0.003446 0.003446 0.002929 0.003274 $299.00

Southern Grampians 0.003474 0.003474 0.003474 0.003474 $175.00

Golden Plains 0.003426 0.003426 0.003083 0.003312 $225.00

South Gippsland 0.004529 0.004642 0.003623 0.004264 $181.70

Colac-Otway 0.003669 0.006044 0.003410 0.004374 $171.00

Glenelg 0.004795 0.005754 0.003357 0.004635 Nil

Moorabool 0.004015 0.006424 0.003132 0.004524 Nil

Campaspe 0.004506 0.005227 0.004054 0.004596 $150.00

Average Group 0.003624 0.004420 0.003115 0.003720 $163.00

Figure 1: 2014/15 Comparisons Rate in the Dollar and Municipal Charge


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If Moyne Shire Council was to apply the group average rate in the dollar of 0.003624 and the group average municipal charge of $163 this would have resulted in an increase in rate revenue for the 2014/15 financial year of $7.8 million.

Figure 2: Rate in the Dollar Comparisons 2014/15

Comparing the relativity of rating levels between Councils can be a difficult exercise due to debate over the most appropriate methods to use and the inability to take into account the intricacies of rating structures in different councils.

Also, cash holdings of municipalities vary and councils have significantly different infrastructure needs and geographic sizes.

For example, Surf Coast Shire is 1,560 square kilometres, compared to Moyne Shire at 5,500 square kilometres and Wellington Shire at 10,200 square kilometres.

Each municipality also has significantly different levels of capital works, funding structures for capital works and varying debt levels.

Public finance theory and practice implies that taxation revenue whether it is at Federal, State or Local Government level is generally used to finance various forms of “public goods, services and community obligations” not necessarily in direct relation to user benefit, but ultimately to benefit the community as a whole.

In this respect rates are a general purpose levy not linked to user pays.

3. WHAT IS A RATING STRATEGY?

A Rating strategy is the method by which Council systematically considers factors of importance that informs its decisions about the rating system.

The rating system determines how Council will raise money from properties within the municipality.

It does not influence the total amount of money to be raised; only the share of revenue contributed by each property.

The rating system comprises the valuation base and the actual rating instruments that are used to calculate property owners’ liability for rates.


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The following issues were reviewed by the Council as part of the 2016/17 Rating Strategy:

• Principles for revenue raising;

• Historical review of present differential system;

• Legislative review: Valuation and Rating legislative overview;

• Philosophies behind the differentials; and

• Resultant differential options responding to the principles and policy issues.

4. HISTORICAL REVIEW

4.1 Rating Strategy 2005 The previous Rating Strategy 2005 was undertaken by Moyne Shire Council in February 2005.

Council felt the 2016/17 financial year was an appropriate time to review its rating system and review its strategic thinking on the distribution of rate revenue.

In the 2004/05 financial year Council raised $8.7M in rates and charges.

The 2005 report detailed the impact of the municipal charge in percentage terms on each category of property.

Council resolved on 28 June 2005 to adopt:

a) The Council continue with a general rating structure comprised of two elements:

I. Property values – multiplied by a uniform shire–wide tariff; and

II. Standard municipal charge – to cover the administrative costs of the Council; and

b) The Municipal Charge be set so as to contribute 15% to the income derived from total rate revenue.

The strategy made commentary from a significance point of view:

“It is important to bear in mind the overall magnitude of the rate bill. It is reasonable to contemplate whether the means will justify the end. That is will any change to the current system, even if supported on equity and efficiency grounds warrant the use of a methodology that itself may be subjective in nature?”

Moyne Rating Strategy Position Paper April 2005.

The Council could not find a significant policy or strategic driver, or equity issue between the various property categories, to digress from their existing rating system as expressed in the June 28 2005 Council resolution.

5. PRINCIPLES - 2016/17 RATING STRATEGY

Council must raise revenue each year sufficient for the purpose of good governance, administration and to provide appropriate services for the community.

The services Council provides are broad and are allocated according to community lifecycle and lifestyle needs.

In particular services that are not provided by the private sector including infrastructure, street lighting, regulatory and statutory services.


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The emphasis in establishing principles for the rating strategy is to provide high level guidance for Council.

It is recognised that in implementing these principles, Council and the community have to make practical decisions using incomplete information within a democratic framework.

Council and the community invariably confront trade-offs and the principles are designed to improve the quality of decision making in this dynamic environment.

The agreed principles guiding the 2016/17 Rating Strategy were:

• Consistency with Council’s strategic, corporate and financial direction as expressed in the Council Plan and Budget;

• Accountability, transparency and simplicity;

• Maintaining core functions;

• Maintain compliance with statutory and regulatory requirements;

• Maintaining current range and levels of service;

• Sustainable financial management; and

• Efficiency, effectiveness and timeliness.

These principles were established to guide the development and assessment of the 13 options considered by the Moyne Shire Council.

6. 2015/16 RATES AND CHARGES

6.1 Introduction Prior to formal modelling the Council reviewed the current Rating Strategy as it was important to have a sound knowledge of the present rating system.

Charge

Basis

General Rate Uniform rate, no differentials.

Payments in lieu of rates Energy generation companies enter into a rating agreement in lieu of the normal rating methodology.

Municipal Charge On single farm enterprises only. Cover administrative costs. Raise 15% of the income derived from total rate revenue.

Cultural and Recreational Land Rate

25% of the General Rate

Kerbside Collection Service Kerbside collection service costs

State Government Landfill Levy State Government Landfill Levy

Waste Facilities Service Charge Waste disposal costs Waste facility development costs Rehabilitation and post-closure maintenance costs

Figure 3: Type of Rates and Charges


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Rating Categories

Capital Improved

Value $

No. of properties

Rate in Dollar Cents

Annual Charge

$

Rates/ Charges

Budgeted $

Residential 1,573,833,520 4,324 0.23108 3,636,814

Rural 3,251,632,440 4,799 0.23108 7,513,872

Rural Lifestyle 770,783,020 2355 0.23108 1,781,125

Commercial 77,193,000 241 0.23108 178,378

Industrial 214,296,000 90 0.23108 495,195

Cultural and Recreational 105,000 1 0.05777 61

Municipal Charge 243.00 2,287,116

Kerbside Collection Service 319.90 1,620,933

State Government Landfill Levy 12.10 61,311

Waste Facility Service Charge: Improved

121.00

996,818 Waste Facility Service Charge: Unimproved

31.00

Supplementary Rates 61,903

Payments in Lieu of Rates 1,435,312

TOTAL 5,887,842,980 11,810 727.00 20,068,838

Figure 4: Table of Rates and Charges 2015/16 Budget

6.2 Benchmarking – Large Councils Victoria Moyne Shire Council is classified as a large Council – one of a 19 Council cohort of the 79 Victorian Councils.

These Councils are similar, broadly based on size, demographics and funding, and this classification system of Councils is used by the Victorian Auditor General to assist their analysis of the Local Government sector.

There are 4 other Council cohorts in Victoria.

The following analysis details the Council’s 8 year history on relevant revenue-based financial ratios and also details Council’s performance benchmarked against the large Council cohort.

The Council’s position in this cohort along with the average of the large Council cohort is detailed.

Moyne Shire Council is a low rating municipality with lower rates per assessment, per residential assessment.

On every rating benchmark Moyne Shire Council performs favourably.

6.2.1 Rates as a percentage of total adjusted revenue

Moyne Shire Council’s rating effort (rate revenue as a percentage of total adjusted revenue) is well below the average (50.3 per cent for large Councils) at 39 per cent.

Revenue is adjusted for one off or specific revenue types such as asset contributions or developer contributions.


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Figure 5: Rate Revenue/Total Adjusted Revenue - History Figure 6: Rate Revenue/Total Adjusted Revenue – Large Rural

6.2.2 Rates and charges per assessment

Rates and charges per assessment have been increasing over the past eight years at Moyne Shire Council.

Despite this, Moyne Shire’s per assessment rating effort is below the average $1,772 of the large Council cohort at $1,605 per assessment.

Figure 7: Rates and Charges per Assessment - History Figure 8: Rates and Charges per Assessment – Large Rural

6.2.3 Rates and charges per residential assessment

Moyne Shire Councils’ Rate and Charge per residential assessment is well below the average of the large Council cohort at $1,098 per residential assessment.

The average residential rate and charge per residential assessment is $1,586 - the highest is Surf Coast Shire at $2,120.


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Figure 9: Rates and Charges per Residential Assessment - History

Figure 10: Rates and Charges per Residential Assessment – Large Rural

This ratio essentially smooths out the presence of large industrial ratepayers and population density discrepancies.

The outcome highlights Council as being below average in terms of the rating levels within the large Council cohort in Victoria.

6.2.4 Rates per capita

Figure 11: Rates per Capita - History Figure 12: Rates per Capita – Large Rural

Moyne Shire Council’s rates per capita was $1,159 compared to the average large Council cohort at $1,132.


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7. LEGISLATIVE REVIEW

Rating structures typically provide a high level of flexibility for Council to apply differential rates.

The legislative review incorporated a presentation on the legislative requirements of both the Valuation of Land Act 1960 and the Local Government Act 1989.

This enabled Council to understand the opportunities and constraints of the legislation.

The legislative framework set down in the Local Government Act 1989 determines Council’s ability to develop a rating system.

This framework provides Council with significant flexibility to tailor a system to suit its requirements. Under the legislation Council has the power to levy:

• Municipal charge;

• Uniform rates;

• Differential rates;

• Special rates and charges;

• Service rates and charges; and

• Rate rebates and concessions.

Section 161 of the Local Government Act (1989) outlines the requirements relating to differential rates:

1. A Council may raise any general rates by the application of a differential rate, if Council considers that the differential rate will contribute to the equitable and efficient carrying out of its functions.

2. If a Council declares a differential rate for any land, the Council must:

a. Specify the objectives of the differential rate, which must be consistent with the equitable and efficient carrying out of the Council’s functions and must include the following:

• A definition of the types of classes of land which are subject to the rate and a statement of the reasons for the use and level of that rate.

• An identification of the type or classes of land which are subject to the rate in respect of the uses, geographic location (other than location on the basis of whether or not the land is within a specific ward in Council’s district).

b. Specify the characteristics of the land, which are the criteria for declaring the differential rate.

The maximum differential allowed under the Local Government Act (1989) is no more than four times the lowest differential rate. The use of differential rates is simple to administer.

When striking the rate for the forthcoming Annual Budget, Council sets the differential rate for set classes of properties at a higher or lower amount than the uniform rate.

The appeal mechanisms are limited.


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Firstly, ratepayers are entitled to lodge a submission on the Annual Budget and proposed rates in the dollar through the budget advertising process.

Council must consider these submissions prior to adopting the Budget.

An aggrieved ratepayer may then lodge an objection to either the Victorian Civil Appeals Tribunal (VCAT) or the Supreme Court.

In both cases, the grounds for objection are quite limited.

In terms of VCAT, the appeal can only be on the grounds that the land is not correctly classified, in terms of it being included, or not included, in the differential rate.

If the appeal is upheld, the only amendment is to the individual property rather than quashing the entire rate.

Similarly, in the case of a Supreme Court appeal, the grounds are limited to:

a. the land in question not being rateable;

b. the charge being calculated incorrectly; or

c. the person levied not being liable to be rated.

The chance of a successful appeal is restricted and does not quash the differential rate.

Council is able to levy a municipal charge on each rateable property within the municipality with the exception of farms where a single municipal charge is payable on mult iple assessments operated as part of a single farm enterprise.

The municipal charge is a flat identical charge that can be used to offset some of the “administrative costs” of the Council.

The legislation is not definitive on what compromises administrative costs.

The maximum municipal charge that can be levied equals 20 per cent of the revenue raised from rates and the municipal charge divided by the number of chargeable properties.

The Local Government Act 1989 applies its rating provisions the Valuation of Land Act 1960 is the principle act in determining property valuations.

Generally each separate occupancy on rateable land must be valued and rated.

Contiguous areas of vacant land with one or more Titles in the same ownership may be consolidated for rating purposes.

Moyne Shire Council rates against the Capital Improved Value (CIV) and accordingly is legally authorised to apply differential rates under section 161 of the Local Government Act 1989 (as amended).

Every two years Council Valuers have a statutory requirement under the Valuation of Land Act 1960, Section 13 DC (5), to conduct a review of property values based on market movements and recent sales trends.

The Valuer General of Victoria is responsible for reviewing the total valuation of each municipality for accuracy before certifying that the municipal valuations are true and correct.

For the initial term of this Rating Strategy capital improved valuations will be based on values returned as at January 1 2016.


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8. OPTIONS - RATING STRATEGY 2016/17

8.1 Introduction Deciding on the amount to be raised by rates, irrespective of the validity of any comparative analysis, is always a major challenge to any Victorian Council.

Notwithstanding, it is reasonable that the Council and the community are aware of these comparisons so as to better appreciate Moyne Shire Council’s 2016/17 Rating Strategy.

Comparing the relativity of rating levels between Councils can be a difficult exercise due to debate over the most appropriate methods to use and the inability to take into account the intricacies of rating structures in different municipalities.

8.2 Current property categories

8.2.1 Introduction

At the time of the financial modelling (March 2016) there was a total of 12,342 assessments in the Moyne Shire Council property data base.

The total comprises 4,216 residential assessments, 4,855 farm assessments, 243 commercial assessments, 88 industrial assessments, 2,506 rural lifestyle assessments with 429 assessments non rateable, 1 Power Generator and 4 wind farms.

The average per assessment is $1,403 with the average rate and charge per assessment at $1,621.

8.2.2 Residential properties

Moyne Shire Council has 4,216 residential properties at the time of modelling with 56 per cent of total properties being classified as residential - this is the second lowest percentage of residential assessments in the large Council cohort.

The average rate per residential assessment is $1,083.

The average rate and charge per residential assessment is $1,456.

The residential properties contributed $1.019M towards the municipal charge revenue in 2015/16 or 44% of this revenue.

8.2.3 Farm properties

Moyne Shire Council has 4855 farm properties with 2564 of those properties paying the municipal charge representing the number of single farm enterprises in the municipality.

Of the $2.306M collected in 2015/16 from the municipal charge single farm enterprises contributed $623,052 or 27%.

The average rate per farm assessment is $1,673.

The average rate and charge per farm assessment is $ 1,742.


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8.2.4 Commercial and Industrial properties

Moyne Shire includes a relatively small number of commercial (243) and industrial properties (88).

In addition there are clusters of significantly highly valued commercial and industrial properties making for a disparate valuation base.

The average rate per commercial assessment is $974 with the average industrial assessment calculating at $5,790 per assessment.

The average rate and charge per commercial assessment is $1,254, with the average industrial calculating at $5,978 per assessment.

The commercial and industrial properties contributed $78,795 or 4% of the total revenue towards the municipal charge revenue in 2015/16.

The definition used for distinguishing these properties is that they are rateable land used predominantly for the purpose of income generation through the carrying on of a business, administrative, commercial or industrial activity that is not farming.

8.2.5 Rural Life

Moyne Shire Council has 2506 rural life properties at the time of modelling with 21 per cent of total properties being classified as rural life – this is the second lowest percentage in the large Council cohort.

The Rural Lifestyle properties contributed $584,172 or 25% of the revenue from the municipal charge in 2015/16.

The average rates per assessment per rural lifestyle assessment is $978.

The average rate and charge per rural life assessment is $1,241.

8.2.6 Power Generators and Wind Farms

Power generators and wind farms contribute $1,430,290 toward rate revenue.

Wind farms pay an average of $182,041 per assessment.

8.3 Philosophy of Differential Rating Prior to the development of thirteen (13) formal and other options detailed consideration was given to the philosophy driving the development of the potential differentials.

The Council’s discussion can be summarised under the following headings:

8.3.1 Equity

The Council acknowledged there was degree of subjectivity in defining what was equitable, just and fair.

The decision to adopt differential rates in preference to a system based on a uniform rate indicated in itself a view that equity will not necessarily be delivered by that system.

The Council discussed distributional equity referring to the justice or fairness in the manner in which the rates burden is distributed between rateable properties.


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This was discussed from the point of view of treatment of like properties should pay similar rates.

This was also reviewed in the context of equity between properties in different circumstances and the relativity dimension.

For example a commercial shop versus a residence – people expressed a view as to what each should be paying relative to the other.

The Council noted the small business (commercial/industrial) owner who was subject to a residential rate and commercial or industrial rate on his/her business along with a municipal charge and the service charge per property.

This was different for the farming business where the residence was captured as part of the overall rates and where only one municipal charge applied to a single farm enterprise as opposed to each rateable assessment.

It was also acknowledged the commercial, industrial and rural ratepayers received a tax deduction for rates paid to Council.

8.3.2 Capacity to pay

The Council considered the issue of the relativity of rates paid by major classes of property- residential, commercial, farm, industrial and vacant land.

It was acknowledged that differential rates would not deal practically with the situation of all individuals, businesses and households.

This was felt with respect to the commercial and industrial base where valuations were significantly disparate, in that there were low valued properties amongst extremely high valued properties.

The general view of the Council was that property value was the best indicator of the capacity to pay rates.

The Council argued that it was not possible for them to accurately identify and quantify the ratepayers’ capacity to pay.

Its decision making has been determined essentially by a consensus of what is fair.

In this vein Council was no different to any other government agency that levies taxes on its constituents and makes decisions about the tax burden.

Notwithstanding this the Council believed total reliance on property value in determining the distribution of rates may result in outcomes that are unfair.

For this reason Council supported the use of the municipal charge to reduce the impact of property values on the amount of rates paid in certain circumstances.

The Council also acknowledged the Australian Government’s role in facilitating a social safety net for the community that was not a part of the Council’s role to use the rating system to apply social equity.

In fact the State Government acknowledged the plight of pensioners and applies a $172 rebate annually to assist pensioners pay their rates and charges to Council.

Council also has hardship provisions under the Local Government Act 1989 and these are applied where ratepayers experience difficulty.


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8.3.3 Options 1 to 13 considered by Council

The following options were considered by Moyne Shire Council over three workshops:

Base Case - Municipal Charge 15% ($243)

Option 2 - Municipal Charge 5% ($81), Rural @ 90%



Option 5 - Municipal Charge @ 5% ($81)

Option 6 - Municipal Charge @ 10% (162)


Option 8 - Municipal Charge @ $324, Rural @ 95%

Option 9 - Municipal Charge $324.00, Rural 90%, Lifestyle 120%

Option 10 - Municipal charge $300, Rural 95%.

Option 11 - Municipal Charge at $200 Rural 90%

Option 12 - Municipal Charge $0, Rural 80%

Option 13 - Rural 90% Commercial 105% ,Industrial 105%

Figure 13: Differential Rating Options

Appendix 1 details the options and the effect of each option against the 2014/15 Base case detailing the financial impact on various valuation levels across the farm, residential, rural living and commercial sectors.

The two primary issues from an equity and distribution perspective focussed on by Council were the:

Lowering of the Municipal Charge from 15% of the total revenue ;and

The possible introduction of a farm rate ranging from 95% of the general rate to 80%.

8.3.4 Base case – Current Rate Structure 2015/16

Figure 14 (Base case) details the current revenue per property category based on the levied rates for the 2015/16 Budget – a total of $20,008,049 was levied - excluding supplementary rates.

Figure 14: Base Case 2014/15


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The distribution based on the base case (2015/16 rates and charges) is detailed in Appendix 1.

The impacts of Options 2 to 13 were measured against the base case and analysed accordingly.

8.3.5 Municipal Charge

Council is able to levy a municipal charge on each rateable property within the municipality with the exception of farms where a single municipal charge is payable on multiple assessments operated as part of a single farm enterprise.

The municipal charge is a flat identical charge that can be used to offset some of the “administrative costs” of the Council.

The legislation is not definitive on what compromises administrative costs.

The maximum municipal charge that can be levied equals 20 per cent of the revenue raised from rates and the municipal charge divided by the number of chargeable properties.

In the case of farms the single farm enterprise pays the municipal charge once – of the 4,855 farm assessments some 2,564 farm enterprises pay the municipal charge at Moyne Shire Council.

The current level of the municipal charge at $243 at Moyne Shire Council raises 15 per cent of the total revenue from rates and charges.

The modelling in options 2, 3, 5, 6 and 12 where it was lowered (along with the other parameters in those options) caused a significant redistribution that, in the absence of clear policy objectives, was ultimately not justifiable.

The current 15 % of revenue from the municipal charge was ultimately retained by the Council on the basis that:

All properties regardless of valuation should contribute equally to the unavoidable fixed costs of Council administration; and

It assists a more equitable distribution due to the disparate valuation base in the municipality.

The municipal charge for 2015/16 was calculated at $243.00.

8.3.6 Farm Rate

Options 2, 3, 4, 8, 9, 11, 12 and 13 all applied (amongst other variables) a farm rate to the properties classified as farms.

The farm rate discount was not agreed to on equity grounds:

Option 8 provides for a 5% reduction for the farm rate resulting in a 5% increase for over 700 residential properties with 220 farms reducing by 7%;

Option 10 provides for a 10 per cent decrease for the farm rate and establishes differentials for commercial and industrial properties resulting in a 7% decrease for 2300 farmers and an increase of 8% for 90 properties and an 9% increase for nearly 1200 rural lifestyle properties; and

Option 12 provides for a 20 per cent discount for the farms and the removal of the municipal charge and sees approximately 2300 farm assessments receive a 6 per cent increase in rates.


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Accordingly on the grounds of equity and fairness, a reduction in the farm rate was not able to be substantiated, particularly when farm assessments were paying the lowest rates in the district when comparisons are made with neighbouring municipalities and Councils within the large Council cohort.

8.3.7 Commercial and industrial

This determination to not levy a differential rate against these properties was made in consideration of the following:

• The valuation base was disparate with extremely high valued properties in each category along with lower rated properties;

• The impact of redistribution to these properties was insignificant in redistribution of the rate burden between the property classes;

• The lower valued (below $800,000) commercial and industrial properties generally are resident in the municipality and accordingly pay the general rates and charges to Council; and

• This distinction was more equitable and recognised capacity to pay.

9. CONCLUSION

Council has acknowledged that from an equity and fairness perspective and in the absence of policy initiatives that would justify a change in the current rating structure that the present system be retained.

Accordingly the Rating Strategy proposed for adoption by the Moyne Shire Council is to continue with a general rating structure comprised of two (2) elements:

• Property values – multiplied by a uniform shire-wide tariff;

• Standard municipal charge – to cover the administrative costs of the Council.

Municipal charge set to contribute 15 per cent of the income derived from total rate revenue.

Council will seek public input prior to adoption.


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10. APPENDIX A: OPTIONS 1 – 13

Rating Options 1-13

Base Case - Municipal Charge 15% ($243)





Option 6 - Municipal Charge @ 10% (162)


Option 8 - Municipal Charge @ $324, Rural @ 95%

Option 9 - Municipal Charge $324.00, Rural 90%, Lifestyle 120%

Option 10 - Municipal charge $300, Rural 95%.

Option 11 - Municipal Charge at $200 Rural 90%

Option 12 - Municipal Charge $0, Rural 80%

Option 13 - Rural 90% Commercial 105% ,Industrial 105%


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Rate Model Data Tables

Property Type Pending SV Pending CIVPending

NAV

Number of

Assessments

$3,620,531,160 $7,294,692,660 $399,614,533 12,234

$3,620,531,160 $7,294,692,660 $399,614,533 12,342

.

Commercial $35,689,500 $79,756,000 $5,791,075 243

Industrial $18,685,000 $211,590,000 $18,939,050 88

Non Rateable $102,299,000 $173,552,500 $8,677,625 429

Residential $804,563,060 $1,536,982,060 $76,849,103 4,216

Rural $2,260,212,080 $3,247,618,580 $162,380,929 4,855

Rural Lifestyle $386,582,020 $809,193,520 $40,456,751 2,506

PowerGen $3,500,000 $625,000,000 $43,750,000 1

Wind Farm $9,000,500 $611,000,000 $42,770,000 4


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Base case - Current structure (General Rate & Vacant Land Rate & Garbage Charge)


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Base Case - Current structure (General Rate & Vacant Land Rate & Garbage Charge)


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Base Case - Current structure (General Rate & Vacant Land Rate & Garbage Charge)


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Option 2 – Municipal Charge @ 5%, Rural @ 90%


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Minimum Rates &

Charges paid by

Property

($)

Maximum Rates &

Charges paid by

Property

($)

Commercial Industrial Non Rateable Residential Rural Rural Lifestyle PowerGen Wind Farm Total

$0 $1,000 171 67 429 2,369 1,739 1,488 0 0 6,263

$1,000 $2,000 51 7 0 1,538 1,827 938 0 0 4,361

$2,000 $3,000 7 4 0 183 715 68 0 0 977

$3,000 Greater than $3000 14 10 0 126 574 12 1 4 741

T o tal 243 88 429 4,216 4,855 2,506 1 4 12,342

Without Waste Charges Included Property Type

Option 2 - Municipal Charge 5% ($81.00), Rural @ 90%


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Minimum Rates &

Charges paid by

Property

($)

Maximum Rates &

Charges paid by

Property

($)


$0 $1,000 166 67 429 2,259 1,762 1,405 0 0 6,088

$1,000 $2,000 56 8 0 1,651 1,850 1,032 0 0 4,597

$2,000 $3,000 7 3 0 181 712 57 0 0 960

$3,000 Greater than $3000 14 10 0 125 531 12 1 4 697

T o tal 243 88 429 4,216 4,855 2,506 1 4 12,342




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Minimum Rates &

Charges paid by

Property

($)

Maximum Rates &

Charges paid by

Property

($)


$0 $1,000 160 67 429 2,118 1,807 1,326 0 0 5,907

$1,000 $2,000 62 8 0 1,795 1,850 1,113 0 0 4,828

$2,000 $3,000 7 3 0 183 704 56 0 0 953

$3,000 Greater than $3000 14 10 0 120 494 11 1 4 654

T o tal 243 88 429 4,216 4,855 2,506 1 4 12,342




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Option 5 – Municipal Charge @ 5%


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Minimum Rates &

Charges paid by

Property

($)

Maximum Rates &

Charges paid by

Property

($)


$0 $1,000 179 68 429 2,530 1,626 1,586 0 0 6,418

$1,000 $2,000 44 7 0 1,414 1,824 861 0 0 4,150

$2,000 $3,000 6 3 0 152 769 48 0 0 978

$3,000 Greater than $3000 14 10 0 120 636 11 1 4 796

T o tal 243 88 429 4,216 4,855 2,506 1 4 12,342


Option 5 - Municipal Charge @ 5% ($81.00)


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Minimum Rates &

Charges paid by

Property

($)

Maximum Rates &

Charges paid by

Property

($)


$0 $1,000 172 67 429 2,416 1,668 1,519 0 0 6,271

$1,000 $2,000 52 8 0 1,539 1,840 931 0 0 4,370

$2,000 $3,000 5 3 0 146 750 45 0 0 949

$3,000 Greater than $3000 14 10 0 115 597 11 1 4 752

T o tal 243 88 429 4,216 4,855 2,506 1 4 12,342


Option 6 -Municipal Charge @ 10% (162.00)


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Minimum Rates &

Charges paid by

Property

($)

Maximum Rates &

Charges paid by

Property

($)


$0 $1,000 168 67 429 2,288 1,695 1,431 0 0 6,078

$1,000 $2,000 56 8 0 1,671 1,858 1,022 0 0 4,615

$2,000 $3,000 5 3 0 145 753 43 0 0 949

$3,000 Greater than $3000 14 10 0 112 549 10 1 4 700

T o tal 243 88 429 4,216 4,855 2,506 1 4 12,342


Option 7 - Municipal Charge @ 15% (243.00)


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Option 8 – Municipal Charge @ $324, Rural @ 95%


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Minimum Rates &

Charges paid by

Property

($)

Maximum Rates &

Charges paid by

Property

($)


$0 $1,000 160 67 429 2,044 1,810 1,281 0 0 5,791

$1,000 $2,000 63 8 0 1,902 1,831 1,167 0 0 4,971

$2,000 $3,000 6 3 0 158 731 48 0 0 946

$3,000 Greater than $3000 14 10 0 112 483 10 1 4 634

T o tal 243 88 429 4,216 4,855 2,506 1 4 12,342


Option 8 - MC $324, Rural @ 95%


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Option 9 – Municipal Charge @ $324, Rural @ 90%, Lifestyle 120%


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Minimum Rates &

Charges paid by

Property

($)

Maximum Rates &

Charges paid by

Property

($)


$0 $1,000 160 67 429 2,040 1,941 984 0 0 5,621

$1,000 $2,000 63 8 0 1,906 1,816 1,357 0 0 5,150

$2,000 $3,000 6 3 0 158 681 153 0 0 1,001

$3,000 Greater than $3000 14 10 0 112 417 12 1 4 570

T o tal 243 88 429 4,216 4,855 2,506 1 4 12,342


Option 9 - Municipal Charge $324.00, Rural Diff 90%, Lifestyle 120%


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Option 10 – Municipal Charge @ $300, Rural @ 95%, Industrial, Commercial, Lifestyle 110%


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Minimum Rates &

Charges paid by

Property

($)

Maximum Rates &

Charges paid by

Property

($)


$0 $1,000 153 65 429 2,139 1,842 1,178 0 0 5,806

$1,000 $2,000 66 10 0 1,818 1,832 1,238 0 0 4,964

$2,000 $3,000 10 3 0 147 712 78 0 0 950

$3,000 Greater than $3000 14 10 0 112 469 12 1 4 622

T o tal 243 88 429 4,216 4,855 2,506 1 4 12,342


Option 10 - Municipal charge $300, Rural Diff 95%, industrial, commercial and rural lifestyle


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Minimum Rates &

Charges paid by

Property

($)

Maximum Rates &

Charges paid by

Property

($)


$0 $1,000 161 67 429 2,220 1,791 1,297 0 0 5,965

$1,000 $2,000 61 8 0 1,694 1,861 1,117 0 0 4,741

$2,000 $3,000 7 3 0 178 693 80 0 0 961

$3,000 Greater than $3000 14 10 0 124 510 12 1 4 675

T o tal 243 88 429 4,216 4,855 2,506 1 4 12,342


Option 11 - Municipal Charge at $200 Rural Diff 90 per cent


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Minimum Rates &

Charges paid by

Property

($)

Maximum Rates &

Charges paid by

Property

($)


$0 $1,000 168 67 429 2,302 1,829 1,429 0 0 6,224

$1,000 $2,000 49 7 0 1,550 1,822 957 0 0 4,385

$2,000 $3,000 11 3 0 217 661 107 0 0 999

$3,000 Greater than $3000 15 11 0 147 543 13 1 4 734

T o tal 243 88 429 4,216 4,855 2,506 1 4 12,342


Option 12 - MC $0, Rural AG261.3151 Diff - 80%


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Option 13 – Rural 90%, Industrial 105%, Commercial 105%


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Minimum Rates &

Charges paid by

Property

($)

Maximum Rates &

Charges paid by

Property

($)


$0 $1,000 154 65 429 2,121 1,812 1,333 0 0 5,914

$1,000 $2,000 65 10 0 1,794 1,852 1,107 0 0 4,828

$2,000 $3,000 10 3 0 181 698 55 0 0 947

$3,000 Greater than $3000 14 10 0 120 493 11 1 4 653

T o tal 243 88 429 4,216 4,855 2,506 1 4 12,342


Option 13 - Rural 90%, Commercial 105%, Industrial 105%


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All Options – Summary Table – Residential

Residential Rates Charged

Rates Levied

Property

Value (CIV) Base Case

Option 2 -

Municipal

Charge 5%

($81.00), Rural

@ 90%

Option 3 -

Municipal

Charge 10%

($162.00),

Rural @ 90%

Option 4 -

Municipal

Charge 15%

($243.00),

Rural @ 90%

Option 5 -

Municipal

Charge @ 5%

($81.00)

Option 6 -

Municipal

Charge @

10% (162.00)

Option 7 -

Municipal

Charge @

15% (243.00)

Option 8 - MC

$324, Rural @

95%

Option 9 -

Municipal

Charge

$324.00,

Rural Diff

90%,

Lifestyle

120%

Option 10 -

Municipal

charge $300,

Rural Diff 95%,

industrial,

commercial

and rural

lifestyle

Option 11 -

Municipal

Charge at

$200 Rural

Diff 90 per

cent

Option 12 -

MC $0, Rural

AG261.3151

Diff - 80%

Option 13 -

Rural 90%,

Commercial

105%,

Industrial

105%

Description of

Option Base Case

MC - 5%

($81.00), Rural

@ 90%

MC 5%

($162.00),

Rural @ 90%

MC 15%

($243.00),

Rural @ 90%

MC 5%

($81.00)

MC 10%

($162.00)

MC 15%

($243.00)

MC $324,

Rural Diff 95%

MC - $324,

Rural @ 90%,

Lifestyle @

120%

MC $300,

Rural @ 95%,

industrial,

commercial

and rural

lifestyle

MC @ $200,

Rural Diff 90%

MC $0, Rural

AG261.3151

Diff - 80%

$200,000 $1,158.16 $1,078.57 $1,131.87 $1,185.18 $1,048.49 $1,103.33 $1,158.16 $1,225.38 $1,225.43 $1,200.76 $1,153.24 $1,060.79 $1,183.91

$300,000 $1,389.24 $1,350.85 $1,390.31 $1,429.76 $1,305.74 $1,347.49 $1,389.24 $1,449.56 $1,449.65 $1,424.64 $1,403.36 $1,364.69 $1,427.86

$400,000 $1,620.32 $1,623.13 $1,648.74 $1,674.35 $1,562.98 $1,591.65 $1,620.32 $1,673.75 $1,673.87 $1,648.52 $1,653.48 $1,668.58 $1,671.81

$500,000 $1,851.40 $1,895.42 $1,907.18 $1,918.94 $1,820.23 $1,835.81 $1,851.40 $1,897.94 $1,898.09 $1,872.40 $1,903.60 $1,972.48 $1,915.77

$600,000 $2,082.48 $2,167.70 $2,165.61 $2,163.53 $2,077.48 $2,079.98 $2,082.48 $2,122.13 $2,122.30 $2,096.27 $2,153.72 $2,276.37 $2,159.72

$700,000 $2,313.56 $2,439.98 $2,424.05 $2,408.12 $2,334.72 $2,324.14 $2,313.56 $2,346.31 $2,346.52 $2,320.15 $2,403.84 $2,580.27 $2,403.68

$800,000 $2,544.64 $2,712.27 $2,682.48 $2,652.70 $2,591.97 $2,568.30 $2,544.64 $2,570.50 $2,570.74 $2,544.03 $2,653.96 $2,884.16 $2,647.63

$900,000 $2,775.72 $2,984.55 $2,940.92 $2,897.29 $2,849.21 $2,812.47 $2,775.72 $2,794.69 $2,794.95 $2,767.91 $2,904.08 $3,188.06 $2,891.58

$1,000,000 $3,006.80 $3,256.83 $3,199.36 $3,141.88 $3,106.46 $3,056.63 $3,006.80 $3,018.88 $3,019.17 $2,991.79 $3,154.20 $3,491.95 $3,135.54

$1,100,000 $3,237.88 $3,529.12 $3,457.79 $3,386.47 $3,363.70 $3,300.79 $3,237.88 $3,243.06 $3,243.39 $3,215.67 $3,404.32 $3,795.85 $3,379.49

$1,200,000 $3,468.96 $3,801.40 $3,716.23 $3,631.05 $3,620.95 $3,544.96 $3,468.96 $3,467.25 $3,467.61 $3,439.55 $3,654.44 $4,099.74 $3,623.44

$1,300,000 $3,700.04 $4,073.68 $3,974.66 $3,875.64 $3,878.20 $3,789.12 $3,700.04 $3,691.44 $3,691.82 $3,663.43 $3,904.56 $4,403.64 $3,867.40

$1,400,000 $3,931.12 $4,345.97 $4,233.10 $4,120.23 $4,135.44 $4,033.28 $3,931.12 $3,915.63 $3,916.04 $3,887.31 $4,154.68 $4,707.53 $4,111.35

$1,500,000 $4,162.20 $4,618.25 $4,491.53 $4,364.82 $4,392.69 $4,277.44 $4,162.20 $4,139.82 $4,140.26 $4,111.19 $4,404.80 $5,011.43 $4,355.31

$1,600,000 $4,393.28 $4,890.53 $4,749.97 $4,609.41 $4,649.93 $4,521.61 $4,393.28 $4,364.00 $4,364.47 $4,335.06 $4,654.92 $5,315.33 $4,599.26

$1,700,000 $4,624.36 $5,162.82 $5,008.41 $4,853.99 $4,907.18 $4,765.77 $4,624.36 $4,588.19 $4,588.69 $4,558.94 $4,905.04 $5,619.22 $4,843.21

$1,800,000 $4,855.44 $5,435.10 $5,266.84 $5,098.58 $5,164.43 $5,009.93 $4,855.44 $4,812.38 $4,812.91 $4,782.82 $5,155.16 $5,923.12 $5,087.17

$1,900,000 $5,086.52 $5,707.38 $5,525.28 $5,343.17 $5,421.67 $5,254.10 $5,086.52 $5,036.57 $5,037.13 $5,006.70 $5,405.28 $6,227.01 $5,331.12

$2,000,000 $5,317.60 $5,979.67 $5,783.71 $5,587.76 $5,678.92 $5,498.26 $5,317.60 $5,260.75 $5,261.34 $5,230.58 $5,655.40 $6,530.91 $5,575.07


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All Options – Summary Table – Rural

Rural Rates Charged

Rates Levied

Property


Option 2 -

Municipal

Charge 5%

($81.00), Rural

@ 90%

Option 3 -

Municipal

Charge 10%

($162.00),

Rural @ 90%

Option 4 -

Municipal

Charge 15%

($243.00),

Rural @ 90%

Option 5 -

Municipal

Charge @ 5%

($81.00)

Option 6 -

Municipal

Charge @

10% (162.00)

Option 7 -

Municipal

Charge @

15% (243.00)

Option 8 - MC

$324, Rural @

95%

Option 9 -

Municipal

Charge

$324.00,

Rural Diff

90%,

Lifestyle

120%

Option 10 -

Municipal

charge $300,

Rural Diff 95%,

industrial,

commercial

and rural

lifestyle

Option 11 -

Municipal

Charge at

$200 Rural

Diff 90 per

cent

Option 12 -

MC $0, Rural

AG261.3151

Diff - 80%

Option 13 -

Rural 90%,

Commercial

105%,

Industrial

105%

Description of

Option Base Case

MC - 5%

($81.00), Rural

@ 90%

MC 5%

($162.00),

Rural @ 90%

MC 15%

($243.00),

Rural @ 90%

MC 5%

($81.00)

MC 10%

($162.00)

MC 15%

($243.00)

MC $324,

Rural Diff 95%

MC - $324,

Rural @ 90%,

Lifestyle @

120%

MC $300,

Rural @ 95%,

industrial,

commercial

and rural

lifestyle

MC @ $200,

Rural Diff 90%

MC $0, Rural

AG261.3151

Diff - 80%

$200,000 $838.26 $655.20 $713.77 $772.33 $728.59 $783.43 $838.26 $861.76 $820.33 $837.20 $738.29 $522.09 $771.30

$300,000 $1,069.34 $875.75 $923.10 $970.45 $985.84 $1,027.59 $1,069.34 $1,064.09 $1,001.95 $1,039.25 $940.89 $716.58 $968.91

$400,000 $1,300.42 $1,096.30 $1,132.43 $1,168.56 $1,243.08 $1,271.75 $1,300.42 $1,266.42 $1,183.56 $1,241.30 $1,143.49 $911.07 $1,166.51

$500,000 $1,531.50 $1,316.85 $1,341.76 $1,366.68 $1,500.33 $1,515.91 $1,531.50 $1,468.75 $1,365.18 $1,443.35 $1,346.09 $1,105.57 $1,364.11

$600,000 $1,762.58 $1,537.40 $1,551.10 $1,564.80 $1,757.58 $1,760.08 $1,762.58 $1,671.08 $1,546.80 $1,645.41 $1,548.68 $1,300.06 $1,561.71

$700,000 $1,993.66 $1,757.95 $1,760.43 $1,762.91 $2,014.82 $2,004.24 $1,993.66 $1,873.41 $1,728.41 $1,847.46 $1,751.28 $1,494.55 $1,759.32

$800,000 $2,224.74 $1,978.50 $1,969.76 $1,961.03 $2,272.07 $2,248.40 $2,224.74 $2,075.73 $1,910.03 $2,049.51 $1,953.88 $1,689.04 $1,956.92

$900,000 $2,455.82 $2,199.05 $2,179.10 $2,159.15 $2,529.31 $2,492.57 $2,455.82 $2,278.06 $2,091.64 $2,251.56 $2,156.48 $1,883.54 $2,154.52

$1,000,000 $2,686.90 $2,419.59 $2,388.43 $2,357.26 $2,786.56 $2,736.73 $2,686.90 $2,480.39 $2,273.26 $2,453.61 $2,359.07 $2,078.03 $2,352.12

$1,100,000 $2,917.98 $2,640.14 $2,597.76 $2,555.38 $3,043.80 $2,980.89 $2,917.98 $2,682.72 $2,454.88 $2,655.66 $2,561.67 $2,272.52 $2,549.73

$1,200,000 $3,149.06 $2,860.69 $2,807.09 $2,753.49 $3,301.05 $3,225.06 $3,149.06 $2,885.05 $2,636.49 $2,857.71 $2,764.27 $2,467.02 $2,747.33

$1,300,000 $3,380.14 $3,081.24 $3,016.43 $2,951.61 $3,558.30 $3,469.22 $3,380.14 $3,087.38 $2,818.11 $3,059.76 $2,966.86 $2,661.51 $2,944.93

$1,400,000 $3,611.22 $3,301.79 $3,225.76 $3,149.73 $3,815.54 $3,713.38 $3,611.22 $3,289.71 $2,999.72 $3,261.81 $3,169.46 $2,856.00 $3,142.53

$1,500,000 $3,842.30 $3,522.34 $3,435.09 $3,347.84 $4,072.79 $3,957.54 $3,842.30 $3,492.04 $3,181.34 $3,463.86 $3,372.06 $3,050.50 $3,340.14

$1,600,000 $4,073.38 $3,742.89 $3,644.43 $3,545.96 $4,330.03 $4,201.71 $4,073.38 $3,694.37 $3,362.95 $3,665.91 $3,574.66 $3,244.99 $3,537.74

$1,700,000 $4,304.46 $3,963.44 $3,853.76 $3,744.08 $4,587.28 $4,445.87 $4,304.46 $3,896.70 $3,544.57 $3,867.96 $3,777.25 $3,439.48 $3,735.34

$1,800,000 $4,535.54 $4,183.99 $4,063.09 $3,942.19 $4,844.53 $4,690.03 $4,535.54 $4,099.03 $3,726.19 $4,070.02 $3,979.85 $3,633.97 $3,932.94

$1,900,000 $4,766.62 $4,404.54 $4,272.42 $4,140.31 $5,101.77 $4,934.20 $4,766.62 $4,301.36 $3,907.80 $4,272.07 $4,182.45 $3,828.47 $4,130.55

$2,000,000 $4,997.70 $4,625.09 $4,481.76 $4,338.42 $5,359.02 $5,178.36 $4,997.70 $4,503.69 $4,089.42 $4,474.12 $4,385.05 $4,022.96 $4,328.15


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All Options – Summary Table – Commercial

Commercial

Rates Levied

Property

Value (CIV)

Base Case

Option 2 -

Municipal

Charge 5%

($81.00), Rural

@ 90%

Option 3 -

Municipal

Charge 10%

($162.00),

Rural @ 90%

Option 4 -

Municipal

Charge 15%

($243.00),

Rural @ 90%

Option 5 -

Municipal

Charge @ 5%

($81.00)

Option 6 -

Municipal

Charge @

10% (162.00)

Option 7 -

Municipal

Charge @

15% (243.00)

Option 8 - MC

$324, Rural @

95%

Option 9 -

Municipal

Charge

$324.00,

Rural Diff

90%,

Lifestyle

120%

Option 10 -

Municipal

charge $300,

Rural Diff 95%,

industrial,

commercial

and rural

lifestyle

Option 11 -

Municipal

Charge at

$200 Rural

Diff 90 per

cent

Option 12 -

MC $0, Rural

AG261.3151

Diff - 80%

Option 13 -

Rural 90%,

Commercial

105%,

Industrial

105%

Description of

OptionBase Case

MC - 5%

($81.00), Rural

@ 90%

MC 5%

($162.00),

Rural @ 90%

MC 15%

($243.00),

Rural @ 90%

MC 5%

($81.00)

MC 10%

($162.00)

MC 15%

($243.00)

MC $324,

Rural Diff 95%

MC - $324,

Rural @ 90%,

Lifestyle @

120%

MC $300,

Rural @ 95%,

industrial,

commercial

and rural

lifestyle

MC @ $200,

Rural Diff 90%

MC $0, Rural

AG261.3151

Diff - 80%

$200,000 $1,158.16 $1,078.57 $1,131.87 $1,185.18 $1,048.49 $1,103.33 $1,158.16 $1,225.38 $1,225.43 $1,294.79 $1,153.24 $1,060.79 $1,233.92

$300,000 $1,389.24 $1,350.85 $1,390.31 $1,429.76 $1,305.74 $1,347.49 $1,389.24 $1,449.56 $1,449.65 $1,565.68 $1,403.36 $1,364.69 $1,502.88

$400,000 $1,620.32 $1,623.13 $1,648.74 $1,674.35 $1,562.98 $1,591.65 $1,620.32 $1,673.75 $1,673.87 $1,836.57 $1,653.48 $1,668.58 $1,771.84

$500,000 $1,851.40 $1,895.42 $1,907.18 $1,918.94 $1,820.23 $1,835.81 $1,851.40 $1,897.94 $1,898.09 $2,107.47 $1,903.60 $1,972.48 $2,040.79

$600,000 $2,082.48 $2,167.70 $2,165.61 $2,163.53 $2,077.48 $2,079.98 $2,082.48 $2,122.13 $2,122.30 $2,378.36 $2,153.72 $2,276.37 $2,309.75

$700,000 $2,313.56 $2,439.98 $2,424.05 $2,408.12 $2,334.72 $2,324.14 $2,313.56 $2,346.31 $2,346.52 $2,649.26 $2,403.84 $2,580.27 $2,578.71

$800,000 $2,544.64 $2,712.27 $2,682.48 $2,652.70 $2,591.97 $2,568.30 $2,544.64 $2,570.50 $2,570.74 $2,920.15 $2,653.96 $2,884.16 $2,847.67

$900,000 $2,775.72 $2,984.55 $2,940.92 $2,897.29 $2,849.21 $2,812.47 $2,775.72 $2,794.69 $2,794.95 $3,191.04 $2,904.08 $3,188.06 $3,116.63

$1,000,000 $3,006.80 $3,256.83 $3,199.36 $3,141.88 $3,106.46 $3,056.63 $3,006.80 $3,018.88 $3,019.17 $3,461.94 $3,154.20 $3,491.95 $3,385.59

$1,100,000 $3,237.88 $3,529.12 $3,457.79 $3,386.47 $3,363.70 $3,300.79 $3,237.88 $3,243.06 $3,243.39 $3,732.83 $3,404.32 $3,795.85 $3,654.55

$1,200,000 $3,468.96 $3,801.40 $3,716.23 $3,631.05 $3,620.95 $3,544.96 $3,468.96 $3,467.25 $3,467.61 $4,003.72 $3,654.44 $4,099.74 $3,923.51

$1,300,000 $3,700.04 $4,073.68 $3,974.66 $3,875.64 $3,878.20 $3,789.12 $3,700.04 $3,691.44 $3,691.82 $4,274.62 $3,904.56 $4,403.64 $4,192.47

$1,400,000 $3,931.12 $4,345.97 $4,233.10 $4,120.23 $4,135.44 $4,033.28 $3,931.12 $3,915.63 $3,916.04 $4,545.51 $4,154.68 $4,707.53 $4,461.43

$1,500,000 $4,162.20 $4,618.25 $4,491.53 $4,364.82 $4,392.69 $4,277.44 $4,162.20 $4,139.82 $4,140.26 $4,816.40 $4,404.80 $5,011.43 $4,730.38

$1,600,000 $4,393.28 $4,890.53 $4,749.97 $4,609.41 $4,649.93 $4,521.61 $4,393.28 $4,364.00 $4,364.47 $5,087.30 $4,654.92 $5,315.33 $4,999.34

$1,700,000 $4,624.36 $5,162.82 $5,008.41 $4,853.99 $4,907.18 $4,765.77 $4,624.36 $4,588.19 $4,588.69 $5,358.19 $4,905.04 $5,619.22 $5,268.30

$1,800,000 $4,855.44 $5,435.10 $5,266.84 $5,098.58 $5,164.43 $5,009.93 $4,855.44 $4,812.38 $4,812.91 $5,629.09 $5,155.16 $5,923.12 $5,537.26

$1,900,000 $5,086.52 $5,707.38 $5,525.28 $5,343.17 $5,421.67 $5,254.10 $5,086.52 $5,036.57 $5,037.13 $5,899.98 $5,405.28 $6,227.01 $5,806.22

$2,000,000 $5,317.60 $5,979.67 $5,783.71 $5,587.76 $5,678.92 $5,498.26 $5,317.60 $5,260.75 $5,261.34 $6,170.87 $5,655.40 $6,530.91 $6,075.18


Page 64 of 65

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All Options – Summary Table – Industrial

Industrial Rates Charged

Rates Levied

Property


Option 2 -

Municipal

Charge 5%

($81.00), Rural

@ 90%

Option 3 -

Municipal

Charge 10%

($162.00),

Rural @ 90%

Option 4 -

Municipal

Charge 15%

($243.00),

Rural @ 90%

Option 5 -

Municipal

Charge @ 5%

($81.00)

Option 6 -

Municipal

Charge @

10% (162.00)

Option 7 -

Municipal

Charge @

15% (243.00)

Option 8 - MC

$324, Rural @

95%

Option 9 -

Municipal

Charge

$324.00,

Rural Diff

90%,

Lifestyle

120%

Option 10 -

Municipal

charge $300,

Rural Diff 95%,

industrial,

commercial

and rural

lifestyle

Option 11 -

Municipal

Charge at

$200 Rural

Diff 90 per

cent

Option 12 -

MC $0, Rural

AG261.3151

Diff - 80%

Option 13 -

Rural 90%,

Commercial

105%,

Industrial

105%

Description of

Option Base Case

MC - 5%

($81.00), Rural

@ 90%

MC 5%

($162.00),

Rural @ 90%

MC 15%

($243.00),

Rural @ 90%

MC 5%

($81.00)

MC 10%

($162.00)

MC 15%

($243.00)

MC $324,

Rural Diff 95%

MC - $324,

Rural @ 90%,

Lifestyle @

120%

MC $300,

Rural @ 95%,

industrial,

commercial

and rural

lifestyle

MC @ $200,

Rural Diff 90%

MC $0, Rural

AG261.3151

Diff - 80%

$200,000 $1,158.16 $1,078.57 $1,131.87 $1,185.18 $1,048.49 $1,103.33 $1,158.16 $1,225.38 $1,225.43 $1,294.79 $1,153.24 $1,060.79 $1,233.92

$300,000 $1,389.24 $1,350.85 $1,390.31 $1,429.76 $1,305.74 $1,347.49 $1,389.24 $1,449.56 $1,449.65 $1,565.68 $1,403.36 $1,364.69 $1,502.88

$400,000 $1,620.32 $1,623.13 $1,648.74 $1,674.35 $1,562.98 $1,591.65 $1,620.32 $1,673.75 $1,673.87 $1,836.57 $1,653.48 $1,668.58 $1,771.84

$500,000 $1,851.40 $1,895.42 $1,907.18 $1,918.94 $1,820.23 $1,835.81 $1,851.40 $1,897.94 $1,898.09 $2,107.47 $1,903.60 $1,972.48 $2,040.79

$600,000 $2,082.48 $2,167.70 $2,165.61 $2,163.53 $2,077.48 $2,079.98 $2,082.48 $2,122.13 $2,122.30 $2,378.36 $2,153.72 $2,276.37 $2,309.75

$700,000 $2,313.56 $2,439.98 $2,424.05 $2,408.12 $2,334.72 $2,324.14 $2,313.56 $2,346.31 $2,346.52 $2,649.26 $2,403.84 $2,580.27 $2,578.71

$800,000 $2,544.64 $2,712.27 $2,682.48 $2,652.70 $2,591.97 $2,568.30 $2,544.64 $2,570.50 $2,570.74 $2,920.15 $2,653.96 $2,884.16 $2,847.67

$900,000 $2,775.72 $2,984.55 $2,940.92 $2,897.29 $2,849.21 $2,812.47 $2,775.72 $2,794.69 $2,794.95 $3,191.04 $2,904.08 $3,188.06 $3,116.63

$1,000,000 $3,006.80 $3,256.83 $3,199.36 $3,141.88 $3,106.46 $3,056.63 $3,006.80 $3,018.88 $3,019.17 $3,461.94 $3,154.20 $3,491.95 $3,385.59

$1,100,000 $3,237.88 $3,529.12 $3,457.79 $3,386.47 $3,363.70 $3,300.79 $3,237.88 $3,243.06 $3,243.39 $3,732.83 $3,404.32 $3,795.85 $3,654.55

$1,200,000 $3,468.96 $3,801.40 $3,716.23 $3,631.05 $3,620.95 $3,544.96 $3,468.96 $3,467.25 $3,467.61 $4,003.72 $3,654.44 $4,099.74 $3,923.51

$1,300,000 $3,700.04 $4,073.68 $3,974.66 $3,875.64 $3,878.20 $3,789.12 $3,700.04 $3,691.44 $3,691.82 $4,274.62 $3,904.56 $4,403.64 $4,192.47

$1,400,000 $3,931.12 $4,345.97 $4,233.10 $4,120.23 $4,135.44 $4,033.28 $3,931.12 $3,915.63 $3,916.04 $4,545.51 $4,154.68 $4,707.53 $4,461.43

$1,500,000 $4,162.20 $4,618.25 $4,491.53 $4,364.82 $4,392.69 $4,277.44 $4,162.20 $4,139.82 $4,140.26 $4,816.40 $4,404.80 $5,011.43 $4,730.38

$1,600,000 $4,393.28 $4,890.53 $4,749.97 $4,609.41 $4,649.93 $4,521.61 $4,393.28 $4,364.00 $4,364.47 $5,087.30 $4,654.92 $5,315.33 $4,999.34

$1,700,000 $4,624.36 $5,162.82 $5,008.41 $4,853.99 $4,907.18 $4,765.77 $4,624.36 $4,588.19 $4,588.69 $5,358.19 $4,905.04 $5,619.22 $5,268.30

$1,800,000 $4,855.44 $5,435.10 $5,266.84 $5,098.58 $5,164.43 $5,009.93 $4,855.44 $4,812.38 $4,812.91 $5,629.09 $5,155.16 $5,923.12 $5,537.26

$1,900,000 $5,086.52 $5,707.38 $5,525.28 $5,343.17 $5,421.67 $5,254.10 $5,086.52 $5,036.57 $5,037.13 $5,899.98 $5,405.28 $6,227.01 $5,806.22

$2,000,000 $5,317.60 $5,979.67 $5,783.71 $5,587.76 $5,678.92 $5,498.26 $5,317.60 $5,260.75 $5,261.34 $6,170.87 $5,655.40 $6,530.91 $6,075.18


Page 65 of 65

www.ctman.com.au

All Options – Summary Table – Rural Lifestyle

Rural Lifestyle Rates Charged

Rates Levied

Property


Option 2 -

Municipal

Charge 5%

($81.00), Rural

@ 90%

Option 3 -

Municipal

Charge 10%

($162.00),

Rural @ 90%

Option 4 -

Municipal

Charge 15%

($243.00),

Rural @ 90%

Option 5 -

Municipal

Charge @ 5%

($81.00)

Option 6 -

Municipal

Charge @

10% (162.00)

Option 7 -

Municipal

Charge @

15% (243.00)

Option 8 - MC

$324, Rural @

95%

Option 9 -

Municipal

Charge

$324.00,

Rural Diff

90%,

Lifestyle

120%

Option 10 -

Municipal

charge $300,

Rural Diff 95%,

industrial,

commercial

and rural

lifestyle

Option 11 -

Municipal

Charge at

$200 Rural

Diff 90 per

cent

Option 12 -

MC $0, Rural

AG261.3151

Diff - 80%

Option 13 -

Rural 90%,

Commercial

105%,

Industrial

105%

Description of

Option Base Case

MC - 5%

($81.00), Rural

@ 90%

MC 5%

($162.00),

Rural @ 90%

MC 15%

($243.00),

Rural @ 90%

MC 5%

($81.00)

MC 10%

($162.00)

MC 15%

($243.00)

MC $324,

Rural Diff 95%

MC - $324,

Rural @ 90%,

Lifestyle @

120%

MC $300,

Rural @ 95%,

industrial,

commercial

and rural

lifestyle

MC @ $200,

Rural Diff 90%

MC $0, Rural

AG261.3151

Diff - 80%

$200,000 $1,158.16 $1,078.57 $1,131.87 $1,185.18 $1,048.49 $1,103.33 $1,158.16 $1,225.38 $1,422.75 $1,294.79 $1,204.51 $1,060.79 $1,183.91

$300,000 $1,389.24 $1,350.85 $1,390.31 $1,429.76 $1,305.74 $1,347.49 $1,389.24 $1,449.56 $1,745.62 $1,565.68 $1,480.27 $1,364.69 $1,427.86

$400,000 $1,620.32 $1,623.13 $1,648.74 $1,674.35 $1,562.98 $1,591.65 $1,620.32 $1,673.75 $2,068.49 $1,836.57 $1,756.03 $1,668.58 $1,671.81

$500,000 $1,851.40 $1,895.42 $1,907.18 $1,918.94 $1,820.23 $1,835.81 $1,851.40 $1,897.94 $2,391.36 $2,107.47 $2,031.79 $1,972.48 $1,915.77

$600,000 $2,082.48 $2,167.70 $2,165.61 $2,163.53 $2,077.48 $2,079.98 $2,082.48 $2,122.13 $2,714.24 $2,378.36 $2,307.54 $2,276.37 $2,159.72

$700,000 $2,313.56 $2,439.98 $2,424.05 $2,408.12 $2,334.72 $2,324.14 $2,313.56 $2,346.31 $3,037.11 $2,649.26 $2,583.30 $2,580.27 $2,403.68

$800,000 $2,544.64 $2,712.27 $2,682.48 $2,652.70 $2,591.97 $2,568.30 $2,544.64 $2,570.50 $3,359.98 $2,920.15 $2,859.06 $2,884.16 $2,647.63

$900,000 $2,775.72 $2,984.55 $2,940.92 $2,897.29 $2,849.21 $2,812.47 $2,775.72 $2,794.69 $3,682.85 $3,191.04 $3,134.82 $3,188.06 $2,891.58

$1,000,000 $3,006.80 $3,256.83 $3,199.36 $3,141.88 $3,106.46 $3,056.63 $3,006.80 $3,018.88 $4,005.73 $3,461.94 $3,410.57 $3,491.95 $3,135.54

$1,100,000 $3,237.88 $3,529.12 $3,457.79 $3,386.47 $3,363.70 $3,300.79 $3,237.88 $3,243.06 $4,328.60 $3,732.83 $3,686.33 $3,795.85 $3,379.49

$1,200,000 $3,468.96 $3,801.40 $3,716.23 $3,631.05 $3,620.95 $3,544.96 $3,468.96 $3,467.25 $4,651.47 $4,003.72 $3,962.09 $4,099.74 $3,623.44

$1,300,000 $3,700.04 $4,073.68 $3,974.66 $3,875.64 $3,878.20 $3,789.12 $3,700.04 $3,691.44 $4,974.35 $4,274.62 $4,237.85 $4,403.64 $3,867.40

$1,400,000 $3,931.12 $4,345.97 $4,233.10 $4,120.23 $4,135.44 $4,033.28 $3,931.12 $3,915.63 $5,297.22 $4,545.51 $4,513.60 $4,707.53 $4,111.35

$1,500,000 $4,162.20 $4,618.25 $4,491.53 $4,364.82 $4,392.69 $4,277.44 $4,162.20 $4,139.82 $5,620.09 $4,816.40 $4,789.36 $5,011.43 $4,355.31

$1,600,000 $4,393.28 $4,890.53 $4,749.97 $4,609.41 $4,649.93 $4,521.61 $4,393.28 $4,364.00 $5,942.96 $5,087.30 $5,065.12 $5,315.33 $4,599.26

$1,700,000 $4,624.36 $5,162.82 $5,008.41 $4,853.99 $4,907.18 $4,765.77 $4,624.36 $4,588.19 $6,265.84 $5,358.19 $5,340.88 $5,619.22 $4,843.21

$1,800,000 $4,855.44 $5,435.10 $5,266.84 $5,098.58 $5,164.43 $5,009.93 $4,855.44 $4,812.38 $6,588.71 $5,629.09 $5,616.63 $5,923.12 $5,087.17

$1,900,000 $5,086.52 $5,707.38 $5,525.28 $5,343.17 $5,421.67 $5,254.10 $5,086.52 $5,036.57 $6,911.58 $5,899.98 $5,892.39 $6,227.01 $5,331.12

$2,000,000 $5,317.60 $5,979.67 $5,783.71 $5,587.76 $5,678.92 $5,498.26 $5,317.60 $5,260.75 $7,234.45 $6,170.87 $6,168.15 $6,530.91 $5,575.07

Documents

Rating Strategy 2016/17 - moyne.vic.gov.au · The 2016/17 Rating Strategy was developed in accordance with the provisions of the Local Government Act ... Through this process of review