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The Bottom Line
The proposed increase will be phased in over 3 years, beginning in 2011/12 by replacing the current 5% Environmental Infrastructure Levy, plus further increments of 4% and 3% per annum respectively, excluding the annual CPI increase. The CPI increase, which is set annually by the state government, runs at approximately 2.8% each year.
The graph below represents Council’s total annual rate income showing the impact of CPI, the Environmental Infrastructure Levy (EI) and the special rate variation over a 3 year period between 2011 and 2014. The current EI Levy (5%) has two years remaining, 2010/11 and 2011/12. It is proposed that the final year of the EI levy (2011/12) be replaced with the first year of the special rate variation of 5%. It should be noted that the EI Levy works planned for its final year (2011/12) will be completed as scheduled.
If the proposed special rate variation is approved, ratepayes will not see an increase to their rates (other than CPI) until the 2012/13 financial year, beginning in July 2012.
|
2010/11 |
2012/13 |
2012/13 |
2013/14 |
2014/15 |
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| Special Rate |
0 |
$1,522,892 |
$1,313,448 |
$1,052,072 |
0 |
|
| EI Levy |
$1,432,803 |
0 |
0 |
0 |
0 |
|
| CPI |
$771,836 |
$855,476 |
$919,414 |
$981,934 |
$1,038,886 |
|
| Rate Base |
$29,685,995 |
$30,457,831 |
$32,836,199 |
$35,069,061 |
$37,103,067 |
|
What is the Council doing to reduce costs?
We are very aware that as an organisation, we have to look at ways of increasing our productivity and reducing operating expenditure. Recent cost-cutting measures include:
- Increased lease returns from Council's properties
- Joint regionalisation of services and tenders
- Employment practices
- Outsourcing services where appropriate
- Procurement
- Centralisation of grant applications
- Productivity and multi-skilling of Council staff
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More efficient technology will replace |
The Council is leasing out some public |
Improved staff productivity is helping |
