4. funding our future special rate variation In 2015 Ballina Shire Council was declared as a Fit for the Future Council by the NSW Government. This was based on a submission provided to the Office of Local Government (OLG) and the Independent Pricing and Regulatory Tribunal (IPART), which outlined a number of actions Council would undertake to improve our financial sustainability. Included in our submission was a proposal to permanently increase our total general rate income by way of an application to IPART for a Special Rate Variation (SRV). The purpose of the SRV is to increase our general rate income above the standard rate peg limit, which allows us to increase the level of funding for infrastructure renewal in areas such as roads, stormwater, playgrounds, sporting fields and community buildings, as well as implementing a new healthy waterways program. IPART annually set a rate peg, which limits the amount by which councils can increase their total rate revenue from year to year. The IPART rate peg limit for 2019/20 is 2.7%. To meet our Fit for the Future benchmarks, Council applied to IPART in February 2018, for a SRV, for the financial years 2018/19 and 2019/20. This application was approved and Council is able to increase our total rate income by 5.9% for 2019/20 (includes an estimated rate peg limit of 2.5% plus an additional 3.4%). The additional income generated from the special rate variation will fund asset renewal and for further information on the variation refer to the Revenue Policy section of this document. In respect to the impact on ratepayers Table One outlines the average rates payable based on the standard rate pegging increase of 2.70% for 2019/20, as confirmed by IPART. Table One - Rate Pegging Only - 2.7% Increase
ITEM
2018/19 ACTUAL
2019/2020 2.7%
CHANGE $
Average Residential Rate Levy ($)
1,039
1,067
28
Average Business Rate Levy ($)
3,494
3,588
94
Average Farmland Rate Levy ($)
1,595
1,638
43
Table Two details the 5.90% rate peg increase approved for Council by IPART for 2019/20. Table Two - IPART Approved Increase of 5.90% for 2019/20
ITEM
2018/19 ACTUAL
2019/2020 5.9%
CHANGE $
Average Residential Rate Levy ($)
1,039
1,101
62
Average Business Rate Levy ($)
3,494
3,696
202
Average Farmland Rate Levy ($)
1,595
1,699
104
Table Three provides the details between the two options. Table Three - Comparison between 2.7% and 5.9% increase for 2019/20
ITEM
2019/20 2.70%
2019/20 5.90%
VARIANCE $
Average Residential Rate Levy ($)
1,067
1,101
34
Average Business Rate Levy ($)
3,588
3,696
108
Average Farmland Rate Levy ($)
1,638
1,699
61
19