Rating Strategy
1. Rating Strategy 2012-2013
City Plan
Rates and Charges are the major source of Council revenue accounting for 61% of the total revenue for Council
annually. Increases in rate income are required to meet the objectives of Council aspirations and community
expectations for new infrastructure. City Plan advocates rate increases over the Council term, required to fund
new initiatives and maintain existing service levels.
2012 Revaluation
In accordance with the Valuation of Land Act 1960, every two years Council conducts a full revaluation of every
rateable property within the municipality. Valuations have been prepared as at 1 January 2012 and apply to all
properties from 1 July 2012.
The table below indicates the general property valuation movement by tariff group excluding growth.
Property Group
Residential
Vacant Land
Commercial
Industrial
Farm
2010
Average
% Inc/(Dec)
11.1%
19.0%
8.2%
12.3%
22.1%
2012
Average
% Inc/(Dec)
10.2%
14.2%
3.9%
(1.2%)
(1.3%)
Residential properties have continued previous trends with average valuation movement per annum > 5%.
Vacant land continues to significantly increase in value, together with a 3.2% increase in land supply (to 5,097
lots).
Commercial properties reflect the impact of shopping centre valuation movement partially offset by negative
commercial movement elsewhere.
Industrial Property valuations declined by (1.2%) with suburbs including North Geelong, North Shore, Breakwater
and Moolap all recording negative movement.
Farm property valuations have recorded a decrease of (1.3%) with positive movements in the northern suburbs
offset by negative movements on the Bellarine, plus some properties within Armstrong Creek Urban Growth area.
Automobile, Aluminium and Petroleum Valuations
Finalisation of valuations for the major industrials has lead to the following movement.
Property Group
Automobile
Petroleum
Aluminium
2010
Average
% Inc/(Dec)
4.2%
(29.4)%
(8.8)%
2012
Average
% Inc/(Dec)
14.5%
(4.1%)
0.0%
3-7
2012-2013 Budget - City of Greater Geelong
2. Current Year Rate Increases
Changes proposed for 2012-2013:
1. Rates and charges on a residential property of the average CIV (including Municipal Charge and Waste
Service Charge) will increase by 5.1% including 0.2% for Carbon Tax costs for Drysdale Landfill.
2. The Waste Collection Service charge is calculated based on a fee for service, including direct, indirect and
overhead costs. The charge is impacted by the closure of Corio Landfill, cost estimates for the introduction of
Carbon Tax and the increase in the EPA levy of $4 per tonne on waste going to landfill. The charge for
2012-2013 will increase from $213.20 to $226.00 or 6.0%.
3. The municipal charge represents a fee on all rateable assessments as a contribution to the fixed and
unavoidable costs of governance. The municipal charge is to increase from $82.30 to $86.33 or 4.9%.
4. The Farm rebate will reduce to 36.2% with average rates increasing by 4.9%. This rebate provides ongoing
rate relief to farmers (33% rebate 2006-2007, 40% rebate 2007-2008, 45% 2008-2010, 45% for 2009-2010,
46.5% for 2010-2011, 46.5% for 2011-2012). In 2012-2013 a 36.2% rebate represents a cost to Council of
$1.3M.
5. The transitional rebate introduced in 2010-2011 for nominated charitable housing properties will be reduced
to 50% rebate in 2012-2013.
6. The pensioner concession will increase from $193.40 in accordance with movement in CPI for Melbourne as
advised by the Australian Bureau of Statistics.
These increases are required in order to fund increases to recurrent expenditure, and the continuing capital
works program.
Residential Rates and Charges
The general revaluation movement of 10.2% together with growth from increase in property numbers due to new
assessments and building improvements have increased the average Capital Improved Value of residential
properties within the municipality from $328,762 to $363,800.
The total increase in rates and charges for the average property with a capital improved value of $363,800 is
$60.06 or 5.1%. This increase is made up of $43.23 for General Rates, $4.03 for Municipal Charge and $12.80
for the Waste Collection service.
Residential Properties
General Rates CIV x Rate in $
Municipal Charge
Waste Collection Service
Total Rates and Charges
2011-2012
Rates on
Av CIV $
882.28
82.30
213.20
1,177.78
2012-2013
Average
Rates $
925.51
86.33
226.00
1,237.84
Increase %
4.9%
4.9%
6.0%
5.1%
Rating Model
Key features of the Rating Model are:

The Residential Rate has been set at $0.002544 per $ of CIV valuation or 4.9% average increase.

Vacant land rates will increase on average 4.9% and the rate in $ relativity to residential has reduced from
137.9% to 133.7%.

Commercial rates will increase on average 4.09% and Industrial rates on average 3.8%.

Automobile rate increase to average 3.9% consistent with Industrial increase.

Petroleum and Aluminium rate in $ has been set at 4 times the lowest rate.
3-8
2012-2013 Budget - City of Greater Geelong

Farm rate has once again been set as per the Residential rate. The Farm Rebate is applicable to all Farm
land and has been reduced to 36.2% from 46.5%. The farm rebate applies to encourage the retention of
broad acre farming. Farm land use requires land to be used as a sustainable business to ensure the rebate is
directed to operating farms.
Comparison with Other Councils
Council continues to monitor the relativity of the City’s residential rates to other comparable municipalities.
Average Rates & Charges
per Residential
Assessment $
per Assessment $
per Residential
Assessment $
per Assessment $
per Residential
Assessment $
per Assessment $
per Residential
Assessment $
2010-2011
Annual Report
per Assessment $
2009-2010
Annual Report
per Residential
Assessment $
2008-2009
Annual Report
per Assessment $
2007-2008
Annual Report
per Residential
Assessment $
2006-2007
Annual Report
per Assessment $
2005-2006
Annual Report
Residential
2010-2011
on
2009-2010
% increase
1,361
1,222
1,439
1,272
1,507
1,310
1,578
1,372
1,615
1,375
1,735
1,466
6.6%
20.0%
974
892
1,052
945
1,130
1,139
1,211
1,233
1,303
1,330
1,409
1,434
7.8%
60.8%
Wangaratta
1,074
937
1,155
1,011
1,204
1,060
1,290
1,124
1,338
1,165
1,398
1,228
5.4%
31.1%
Warrnambool
1,102
927
1,183
989
1,282
1,102
1,367
1,218
1,438
1,278
1,542
1,388
8.6%
49.7%
Latrobe
1,149
851
1,227
942
1,289
1,022
1,351
1,032
1,402
1,078
1,483
1,159
7.5%
36.2%
Greater Geelong
1,005
868
1,080
936
1,157
977
1,227
1,028
1,293
1,079
1,347
1,129
4.6%
30.1%
Ballarat
1,051
840
1,138
887
1,229
955
1,348
1,016
1,410
1,061
1,454
1,125
6.0%
33.9%
976
830
1,063
880
1,140
906
1,197
996
1,344
1,098
1,332
1,131
3.0%
36.3%
Regional Cities
Wodonga
Horsham
Greater Bendigo
Residential
Gross %
Movement
6 Years
Neighbouring Councils (Other G21)
Borough of Queenscliffe
1,260
1,220
1,343
1,292
1,419
1,354
1,529
1,483
1,597
1,542
1,693
1,626
5.4%
33.3%
SurfCoast
1,153
1,094
1,292
1,254
1,384
1,326
1,487
1,430
1,589
1,530
1,698
1,638
7.1%
49.7%
Wyndham
1,128
978
1,224
1,049
1,178
1,080
1,344
1,087
1,476
1,078
1,582
1,168
8.3%
19.4%
Golden Plains
803
754
897
809
975
886
1,068
929
1,150
1,063
1,306
1,200
12.9%
59.2%
Colac Otway
956
878
1,069
950
1,151
1,090
1,228
1,000
1,288
1,031
1,400
1,151
11.6%
31.1%
Maribyrnong
1,344
1,042
1,405
1,009
1,496
1,174
1,616
1,288
1,687
1,341
1,812
1,442
7.5%
38.4%
Whittlesea
1,086
904
1,141
950
1,238
975
1,312
1,030
1,308
1,058
1,413
1,114
5.3%
23.2%
City of Port Phillip
1,091
953
1,181
968
1,178
966
1,230
1,017
1,258
1,068
1,310
1,131
5.9%
18.7%
Metropolitan Councils
1 Figures
Include: Actual Rates, Municipal Charge & Garbage Charge and sourced from Councils Annual Reports
Cost Indicators – Local Government Index
Historical Movements in CPI & LGCI (source: MAV Local Government Cost Index 2011)
Forecast
% Growth
2005-2006
2006-2007
2007-2008
CPI
3.2%
2.6%
3.6%
LGCI
3.4%
4.1%
5.2%
*estimate one off Carbon Tax Impact 0.7%
2008-2009
2.8%
5.0%
2009-2010
3.3%
3.4%
2010-2011
2.5%
3.7%
2011-2012
2.5%
3.6%
3. Rating Structure
All rating is made with respect to the Local Government Act 1989, Section 154 to Section 181.
The rating structure has three key elements:
1. A rate in the dollar applied against the Capital Improved Valuation.
2. The Municipal Charge (a fixed contribution to the governance costs of Council).
3-9
2012-2013 Budget - City of Greater Geelong
2012-2013
3.7%*
TBA
3. A fee for a separate component to reflect usage of services provided (ie. Waste Services).
Council has 14 rating or tariff groups with the application of differential rates to each of these groups in
accordance with Section 161 of the Act.
In 2011-2012 Council decided to introduce three new differentials for the unique environmentally sensitive urban
development land at “The Point” on Point Lonsdale. These additional rating groups are for Residential, Vacant
and Commercial land within the geographic location of “The Point” subdivision. It is considered that this land is
unique because of the obligations for maintaining the water quality under the RAMSAR treaty. These rates will be
set at the same level as the similar land use for 2012-2013 and it is intended to amend them in future years to
contribute to the costs of managing the environmentally sensitive land.
The purpose of the various rating groups is to ensure that each group makes a fair and equitable contribution to
rates. Full disclosure of the rating groups, number of properties, valuations and revenue is shown in the Statutory
Information on Rates.
Charitable Housing
Prior to the 2011-2012 budget a review was conducted of housing provided for social, community or charitable
purposes. Commencing from 2011-2012 all housing provided by Housing Associations, charitable or government
organisations will be rated in accordance with legal precedent and the Local Government Act.
A Housing Support rebate will again be provided on application for Transitional, Crisis or Emergency housing
provided by charitable organisations. The rebate will also be provided on application for housing provided by
Geelong Legacy Club or the RSL and housing provided by charitable organisations to support disabled people.
Rebates will be for 100% of general rates and the municipal charge.
A Transitional rebate of 50% of general rates and municipal charges will be provided in 2012-2013 for nominated
charitable housing properties that have previously not been rated to allow for a smooth transition in the rateable
status of these properties.
Assistance for low income households is already provided through the State Government pension rebate and the
means tested rent provided by the Department of Housing and the Housing Associations.
Rates Assistance
It is proposed to continue the rate relief provisions to allow for the continuation of a one-off waiver for residential
and farm properties where the valuation has exceeded reasonable expectations and is purely the result of market
factors, not the result of improvements to property by the owner. The waiver is designed to mitigate the rates
shock of a valuation increase and is only claimable once in a two year valuation period.
Council also provides a range of assistance measures to suit individual needs including pension rebates, farm
rebates, rates deferral, and payment options such as regular Direct Debit, and Centrepay.
Municipal Charge
The purpose of the municipal charge is to recover some of the administrative costs of the Council. The charge is
applied to all rateable properties and is proposed to be increased from $82.30 to $86.33.
Where rates are a variable charge levied on CIV at a rate in the dollar, the municipal charge is a fixed
contribution on all ratepayers.
Recycling and Waste Collection Service Charge
The Annual Service Charge is proposed at $226.00 for each rateable land and non-rateable land. The charge be
levied on the following criteria:

Geographic existence within those areas of the municipal district in which Council provides a domestic refuse
collection and disposal service.

The charge will be raised irrespective of whether the service is used or not.
3-10
2012-2013 Budget - City of Greater Geelong
Incentives
No incentives be declared as the incentives to be given by Council for the payment of General Rates, Municipal
Charge and the Annual Service Charge (described earlier in this document) before the dates fixed for their
payment under Section 167 of the Local Government Act 1989.
Interest on unpaid rates and charges will be charged in accordance with Section 172 of Local Government Act
1989 (as amended).
Council Differential Rates
Residential Land
Any land which:
(a) does not have the characteristics of Vacant Land; and
(b) is used exclusively for residential purposes.
Vacant Land
Any land:
(a) which does not have the characteristics of:
(i) Farm Land; or
(ii) Residential Land; and
(b) on which no building is erected save for any uninhabitable shed or shelter that does not exceed more than
5% of the total area of the land.
Commercial Land
Any land which:
(a) does not have the characteristics of:
(i)
Farm Land; or
(ii)
Vacant Land; or
(iii)
Industrial Land; or
(iv)
Petroleum Production Land; or
(iv)
Aluminium Production Land, or
(v)
Automobile Manufacture Land; and
(b) is used exclusively:
(i)
for the sale of goods or services; or other commercial purposes.
The Point – Residential Land
(a) Is used exclusively for residential purposes and
(b) Does not have the characteristics of Vacant Land.
(c ) Geographic Location:
All the land described (or formerly described) in Certificate of Title Volume 09901 Folio 324 and also described in
Lot B LP 214468.
Specific Objectives:
To ensure that all rateable land makes an equitable and efficient financial contribution to cost of carrying out the
functions of council, generally including the:
(a) construction and maintenance of public infrastructure.
(b) development and provision of health and community services.
(c) provision of general support services.
(d) management of environmentally sensitive land.
Also specifically in respect of the Point land (as defined in this differential rate scheme) to maintain and to
accommodate a range of development and uses around an existing waterway and a constructed lake and canal
system.
3-11
2012-2013 Budget - City of Greater Geelong
The Point – Vacant Land
Any land that does not have the characteristics of:
(a) Farm Land, or
(b) Residential Land; and on which no building is erected save for any small uninhabitable storage shed or
shelter occupying no more than 5% of the total land area.
(c) Geographic Location:
All the land described (or formerly described) in Certificate of Title Volume 09901 Folio 324 and also described in
Lot B LP 214468.
Specific Objectives:
To ensure that all rateable land makes an equitable and efficient financial contribution to cost of carrying out the
functions of council, generally including the:
(a) construction and maintenance of public infrastructure.
(b) development and provision of health and community services.
(c ) provision of general support services.
(d) management of environmentally sensitive land.
Also specifically in respect of the Point land (as defined in this differential rate scheme) to maintain and to
accommodate a range of development and uses around an existing waterway and a constructed lake and canal
system.
The Point – Commercial Land
Any land that:
(a) Does not have the characteristics of:
i) Farm Land; or
ii) Vacant Land; or
iii) Industrial Land; or
(b) Is used predominantly for the sale of goods or services; or other commercial purposes.
(c ) Geographic Location
All the land described (or formerly described) in Certificate of Title Volume 09901 Folio 324 and also described in
Lot B LP 214468.
Specific Objectives:
To ensure that all rateable land makes an equitable and efficient financial contribution to cost of carrying out the
functions of council, generally including the:
(a) construction and maintenance of public infrastructure.
(b) development and provision of health and community services.
(c ) provision of general support services.
(d) management of environmentally sensitive land.
Also specifically in respect of the Point land (as defined in this differential rate scheme) to maintain and to
accommodate a range of development and uses around an existing waterway and a constructed lake and canal
system.
Late Licensed Premises Land
Any land that:
(a) has the characteristics of Commercial Land; and
(b) has a licence under the Liquor Control Reform Act 1998 to supply liquor for consumption at those premises
past 1.00am on at least one night of the week.
3-12
2012-2013 Budget - City of Greater Geelong
Industrial Land
Any land which:
(a) does not have the characteristics of:
(i)
Farm Land; or
(ii)
Vacant Land; or
(iii)
Commercial Land; or
(iv) Petroleum Production Land; or
(v)
Aluminium Production Land; or
(vi) Automobile Manufacture Land; and
(b) is used predominantly for industrial purposes which includes manufacturing, repairing, servicing, processing
and reprocessing.
Mixed Use Land
Any land which:
(a) has the characteristics of Residential Land combined with the characteristics of Commercial Land or
Industrial Land; and
(b) is not used exclusively for either Residential and/or Commercial and/or Industrial purposes.
Farm Land
Any land which is not less than 2 hectares in area and:
(a) is used predominantly for a sustainable business of grazing (including agistment), dairying, pig-farming,
poultry farming, fish farming, tree farming, bee-keeping, viticulture, horticulture, fruit growing or the growing
of crops of any kind or for any combination of those activities or;
(b) satisfies the criteria for municipal purpose benefit for large holdings.
Petroleum Production Land
Any land which:
(a) does not have the characteristics of Industrial Land; and
(b) is used primarily for the production of petroleum or petroleum by-products; and
(c) is identified as such in the Council Report.
Aluminium Production Land
Any land which:
(a) does not have the characteristics of Industrial Land; and
(b) is used primarily for the manufacture or production of aluminium or aluminium products; and
(c) is described as such in the Council Report.
Automobile Manufacture Land
Any land which:
(a) does not have the characteristics of Industrial Land; and
(b) is used primarily for the manufacture of automobiles or automobile products; and
(c) is described as such in the Council Report.
A rate pursuant to the Cultural and Recreational Lands Act 1963 be declared for rateable land having the
respective characteristics specified below.
Cultural and Recreational Land Any land which:
(a) has the characteristics of Recreational land as defined by the Cultural and Recreational Lands Act 1963; and
(b) is described in the Council Report.
3-13
2012-2013 Budget - City of Greater Geelong