Rates Harmonisation Merged Councils

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  • #18703
    Melissa McCulloch
    Blocked

      Central Coast

      Hi All

      I am aware that there have been informal representations made to OLG to consider either/both delaying the harmonisation of rates for 12 months and providing a ‘Glide Path’ for transitioning resulting increases and decreases.

      Central Coast have requested a report for later this month.

      Initially I will be looking at preparing something around:
      – background,
      – schedule for implementation,
      – likely impacts and benefits of delaying implementation and developing a ‘glide path’

      Are any other councils considering this and what conversations are happening at your council?

      Regards
      Mel

      #18706
      Melissa McCulloch
      Blocked

        Central Coast

        Update on where CCC is at with rates harmonisation:

        CCC Councillors first enquiry was to harmonise our ordinary rates next year – a confidential report was presented to council early this month

        We are now exploring postponing harmonisation in more detail for a year (harmonise in 2020/21)

        For those interested here is a link to the report to council from Monday night href=”https://cdn.centralcoast.nsw.gov.au/sites/default/files/Council/Meetings_and_minutes/amendeditem49-ordinaryratesharmonisation.pdf” title=”Ordinary Rates Harmonisation Central Coast Council” target=”_blank”>

        Councillors have requested a further briefing next Monday that our brand new CFO is going to deliver. As part of the briefing we are going to give them the following scenario:

        Impact on rates 2020-21 with the following assumptions (all modeled in IBIS – not spruiking it but spread sheets are not my forte)
        • Max min $553 – exception max min for a res sub category which is $282
        • 2.5% increase on revenue from 2019-20 for all categories
        • Harmonised Rate in the Dollar for the residential ordinary rate (it’s not a pretty curve)

        Happy to discuss with other merged councils if you are experiencing the same questions.

        Mel

        #18705
        Andrew Butcher
        Keymaster

          Hi Melissa

          Your council may be interested in this Local Government Amendment Bill.

          First print – Local Government amendment bill 2019

          Regards
          Andrew

          #18704
          Melissa McCulloch
          Blocked

            Central Coast

            Hi All

            It looks like the Local Government Amendment Bill 2019 was passed by both houses of Parliament Wednesday 19 June 2019. This was assented Tuesday 25 June 2019 – Act No 6 of 2019.

            Schedule 1(5) of the bill explains the changes to Section 218CB Transitional provision for maintenance of pre-amalgamation rate paths
            The changes included:
            Omit “3 rating years” from section 218CB (2). Insert instead “4 rating years”.

            I can’t see that there is any opportunity for merged councils to nominate when they harmonise rates based on the wording above.

            Does this mean that rates harmonisation will occur in 2021/22? Or can the Minister determine this?

            https://www.parliament.nsw.gov.au/bills/Pages/bill-details.aspx?pk=3643

            Thanks
            Mel

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