If you have any questions not covered by the information we have provided, please email your question to paul_reid@pittwater.nsw.gov.au

We will then publish responses to the key themes generated by residents questions.

The cost to ratepayers does not seem to add up. The highest % increase is 5% for 2011-2102 but Mark Ferguson quotes the extra rates fro that year to average $38, the lowest yearly rate of 3% is quoted as $75 average increase in rates. Perhaps I am missing something?

• As a rate payer you have been paying a 5% environmental infrastructure levy each year for the past 6 years. 2011/2012 is the final year of this levy. Council is proposing to replace the final year of the environmental infrastructure levy with the first year of the Special Rate Variation. This new Special Rate Variation would also start at 5%. In the following two years the proposed increase is 4% and 3%. It should be noted that the proposed increase over three years of 5%, 4% and 3% is above the projected CPI of 2.8% each year. In my blog I was highlighting the actual increase you would see in your rates notice in the first year. The existing environmental infrastructure levy of 5% will be replaced by a new special rate variation of 5%, so as a resident you would only see a CPI increase in Year 1. This equates to approx $38 (based on the average land value in Pittwater of $750,000) on your rates notice. The following 2 years the increase would be $79 & $75 respectively, these figures include both CPI (2.8%) and the proposed increase of 4% and 3% respectively.

Why has the Council allocated funds to Scotland Island as part of the $38 million works program?

• Pittwater Council believes in the principles of access, participation, rights and equality for all residents of Pittwater.  We believe all residents should have fair access to services, resources and opportunities to increase their quality of life. There is a range of long-term planning documents relating to Scotland Island's drainage and road network. The 10-year program of works funded by the special rate variation has set aside approximately $1.6million for the upgrade of essential infrastructure on Scotland Island. This equates to 4% of the overall works program over a ten year period.

If the rate increase is approved, does that mean you will double your spend from next year or is it ten times more?

• Each year the Council develops a Capital Improvement Program or CIP for short. This is a range of works on new and existing assets such as roads, footpaths, drainage, sea walls etc. For the current financial year there was an $11 million CIP program budgeted as shown below. Due to funding constraints and changes in grant funding, this budget has been adjusted to $8.5 million.
  
  If the special rate variation is introduced, there will be an additional $3.8 million generated each year for ten years from July 2011 for additional works on top of the annual CIP program. The full list of CIP projects can be viewed in Council's 2010-2014 Delivery Program.
  

Can you confirm the proposed special rate increase is not a replacement of the Environmental Levy of 5% but a rate increase phased in over three years?

• The proposed special rate is a new levy within itself, but as the Environmental Infrastructure levy had one year to run in 2011/12, the new levy will replace the levy for that year only. 
  Accordingly, the new special rate variation is a cumulative levy of 5% in the first year, 4% in the second year and 3% in the third year. This equates to a total of 12% excluding CPI for the period of 3 years only.
  As ratepayers are already paying the 5% for the EI Levy in the first year, they will only see a CPI increase in their rates notice in 2011/2012.

At the end of the three years is the rate increase built in for ever more? 

• At the end of the three years the increase residents have paid will still be there, but at this stage their rates will only be affected by the annual CPI increase that is determined each year. This currently runs at between 2.6% and 2.8% each year.

The reported percentage increases over the 3 years does not equate with the reported dollar figures. Can you explain?

• Ratepayers should observe the figures in the land value table in the Pittwater Report Special Edition mailed to all ratepayers in February.  Using an average land value of $750,000, ratepayers are currently paying $1,170 in rates (including the current 5% environmental infrastructure levy). As  2011/2012 would be the last year of the 5% environmental infrastructure levy,  the impact to ratepayers in Year 1 of the special rate would only be the annual CPI increase of 2.8% and a very small adjustment of 0.4% that picks up the mathematical difference between removing the environmental infrastructure levy and implementing the new special rate. In Year 2 and Year 3 rates will increase by 4% and 3% (exclusive of the annual CPI increase) respectively.

What is the total special rate increase, excluding the CPI increases, at the end of the 3 year period between 2011 and 2014? 

• Excluding the annual  CPI, increase, in Year 1 income from the special rate will be $1,522,892; Year 2 $1,313,448 and Year 3 $1,052,072 
• The total of special rate income over three years will be $3,888,412

Page Updated: 01 Mar 2011