2023-01-16 General Committee Meeting Agenda

GENERAL COMMITTEE MEETING AGENDA                                                    16 JANUARY 2023


Information Request - General Rating Category Funding - Transitory
Following a request from Cr Lorenston relating to the October Financial Performance report
presented at General Committee on 12 November 2022, additional information has been provided
in this month’s report on the General Rates funding and utilisation by category, with a focus on the
transitory rating category.
The following table summarises the current number and land valuation (UCV) of shire properties
by group; identifying 31,108 properties with a UCV of over $13 billion.
The following table summarises this by type.
          Summary Group                   # Properties       Sum of Valuation

          Rural and Agricultural                      215         $81,429,500
          Residential                              24,696     $10,752,677,904
          Transitory                                4,376      $1,596,619,965
          Commercial and Industrial                  1758        $618,259,111
          Vacant                                       63         $62,190,000
          Grand Total                              31,108     $13,111,176,480
The General Rates levied on these 31,108 properties will generate an estimated $63 million in
revenue for the 2022/23 year. This is utilised to fund the majority of Council’s $119 million operating
budget, with the balance $56 million funded through levies, waste charges, grants, interest revenue
and fees.
       The discontinued Tourism and Economic Levy that was historically charged on commercial,
        industrial and transitory land uses and has now been embedded into the General Rates
        charge for these properties (i.e. residential, vacant and rural/agricultural did not have their
        General Rates increased in 2021/22 when the Tourism and Economic Levy was unwound)
       The operation of the new Short Stay Letting and Home Hosted Local Law is not presently
        fully funded (due to deferral of renewal fees in the 2022/23 budget). This shortfall is however
        being borne by all ratepayers (i.e. including residential, vacant and rural/agricultural). The
        below table provides an overview of the current years actual results against the full year
        adopted budget for short stay activities.
                                           YTD Actuals               Annual
                                                 $’000               Budget
                                                                       $’000
          Fees and Charges Revenue                  $45.5             $467.2
          Employee Benefits                        $190.3            $387.0
          Material & Services                       $28.6            $154.3
          Net Shortfall                           ($173.4)           ($74.1)
Based on the above, the following table summarises the $63 million in General Rates generated
and funding sourced from each of the summary land use types.
    Grouping                       Tourism and         Short Stay         Remaining       Total Annual
                                      Economic         Local Law        General Rate     General Rates
                                  Development            Funding       Base Activities        Revenue
                                 Allocation $M       Shortfall $M                  $M
    Rural and Agricultural                                   $0.00              $0.35            $0.35
    Residential                                              $0.06            $41.53            $41.59
    Transitory                            $2.78              $0.01            $12.42            $15.21
    Commercial and Industrial             $1.07              $0.00              $5.27            $6.34
    Vacant                                                   $0.00              $0.26            $0.26
    Grand Total                           $3.85              $0.07            $59.83            $63.75



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