|
Addressing some of the commonly asked questions about Council rates
The responses to these commonly asked questions have been prepared to help clarify
some of the issues that may be raised. They are not definitive answers, with many
different viewpoints and arguments held by various people on what can often come
down to a personal philosophical debate.
Council receives thousands of letters each year, many of which say Council has the
wrong priorities. Some say Council shouldn't build cycle ways others complain bitterly
because Council does not build enough cycle ways!
When it comes to establishing priorities, Council must balance the competing demands
for services and make decisions it believes are the best decisions for the community
as a whole.
| 1 |
Why is population growth costly to Council? |
As the Shire continues to grow Council struggles to meet community expectations
for upkeep of roads, footpaths, parks, sporting fields and public buildings. Tweed
Shire Council has to maintain around $900m worth of assets on the current, relatively
low, general rate base.
Due to a combination of population growth, increasing community expectations and
relatively low rates the level and quality of services that Council is able to provide
is progressively declining.
During the past few years Council undertook community consultations on various projects.
This consultation highlighted what is important to the residents of Tweed Shire.
What Council doesn't know is the way residents rate the importance of the various
projects.
But don't the developers pay?
Council collects money from people doing new development in the Shire to help fund
public amenities and services that have to be created as a consequence of their
development.
For example developing a block of land at Banora Point includes $23,304 in water
and sewer, community facilities, roads, cemeteries and open space contributions.
Those contributions don't cover every facility new residents will use throughout
the Shire and they certainly make no provision for the on going maintenance of the
newly created facilities. As well, in many cases Council has to find funds to match
the contribution made by the developer if the newly created works are of benefit
to the existing community.
Infrastructure provided by developers is ultimately inherited by Council, which
then has to factor in maintenance costs. For example at Casuarina $267,000 is budgeted
each year for maintenance of street furniture, open space, roundabouts, cycleways
and drainage.
Population growth is great for local business and provides employment opportunities,
but it puts a lot of strain on Council's resources.
The bottom line is that Council will continue to get progressively poorer unless
we collect an appropriate rate to fund the things we need to do.
| 2 |
I live in the bush, why should I pay rates? |
The services provided by Council are fairly equally accessible to everyone in the
Shire.
All use [or are able to use] the network of roads, libraries, bushfire fighting
facilities and all the other things provided by Council.
This includes over 1,000 kilometres of sealed and unsealed local roads, state and
regional roads, cycle ways, kerb and guttering, footpaths, drainage, bridges, parks,
gardens, sporting fields, swimming pools, public health administration, planning
controls, strategic planning for the future, food shop inspections, environmental
management, planning bushfire prevention, libraries, community facilities, services
to the aged and youth, bus shelters, traffic management and much more.
Infrastructure
When people receive their rate bill they often forget that they already use millions
of dollars worth of infrastructure, created over decades from rate contributions.
Facilities like the extensive network of roads, parks, sporting fields, swimming
pools, public reserves, bush land walking trails, drainage reserves, tennis courts,
libraries, public car parks, playground equipment, tourist facilities and cycle
ways.
Council's drainage system alone, for example is valued at $84 million to replace.
Then there are all the buildings like halls, amenities blocks, community centres
and many more. So, even when people pay rates at Council today, they are getting
the 'free' benefit of everything that has been provided by previous generations
of residents, while at the same time, contributing their bit towards continuing
those facilities for future generations to use and enjoy.
Council's assets are estimated to be worth almost $900 million.
You only pay for what's available
It is also important to understand that residential amenities commonly provided
in towns and villages, such as water supply, sewerage and waste disposal are paid
for by the people who actually use that service, or have the services available.
They are each self-funding functions that are not subsidised by 'ordinary' rates.
So, if people live 'out in the bush', with no water supply or sewerage they are
not asked to contribute towards the operation of those services. What they pay is
the basic, ordinary rate.
Part of a network of councils
It is a mistake for people to confine their thinking to just what is provided locally.
Tweed Shire Council forms part of a network of Councils throughout New South Wales
and Australia. When travelling we enjoy free use of facilities such as parks, beaches
and amenities in other Local Government areas.
The bigger picture
In the current 'user pays' culture, people often attempt to cost out their rate
contribution to the last cent. They look at what they pay now and try to equate
it with what they get now. They forget that when they were children, they played
on Council sporting fields, borrowed books from the library and did many 'free'
activities they may not do now. For the first third of their lives they didn't even
pay rates, but they did use the Council services. As people get older they get a
job, a home and an ability to pay rates. In other words, you should look at it over
a person's lifetime and at the bigger picture, not just today and not just in the
current place a person lives.
| 3 |
Why don't you get your priorities right? |
Council faces a paradox when it attempts to establish priorities.
- Some people say Council should consult widely and consider the views of the whole
community, but others say it must quickly dismiss the views of the noisy minority.
- Some say Council must listen to the people, but others say it must take hard decisions,
even in the face of overwhelming community opposition.
- Some say Council shouldn't get in the way of development, others insist it must
preserve the rural ambience at all cost.
- Some were adamant that Council has to provide leadership, but others say it must
do what the community tells it to do.
- Some people wanted streetlights, others objected to streetlights, some wanted
better sporting facilities and others thought they were a waste of money. The list
goes on.
Yes, it is an impossible task to be all things to all people. In fact many issues
are debated at Council, particularly at budget time, with a huge range of varying
priorities. Imagine the range of competing priorities Tweed's 80,000 residents would
have. So when it comes to establishing priorities, your Administrators must balance
the competing demands for services and make decisions it believes are the best decisions
for the community as a whole. Naturally some people will be happy when those priorities
match theirs, but there is bound to be an equally unhappy group who will tell us
- "you've got it wrong."
| 4 |
Will Council get more rates when the valuations rise? |
It is not an uncommon perception in the community that when valuations rise Council
suddenly gets more rate income.
The reality is because of rate pegging legislation in New South Wales, Councils
collect a similar amount of rates in total they collected in the previous year [plus
whatever the State Government allows for inflation and the number of new properties)
irrespective of how much valuations may go up. Rate pegging applies to the total
income collected, not individual rate assessments.
| 5 |
How many people pay rates? |
There are currently around 80,000 people living in Tweed Shire and there are presently
36,000 rateable properties of which about 40% pay the minimum residential rate of
$536 a year, or a bit over $10.30 a week. Others pay more, with the amount levied
linked to their land value.
| 6 |
Why don't people who rent have to pay rates? |
It is important to remember that it is not only property owners who contribute rates.
People who are renting pay a component factored into their rent to their landlord,
so they also contribute their fair share.
| 7 |
Why are rates so expensive? |
Relative to most other things people have to pay, Council rates are really quite
reasonable, when you consider what has to be provided with them.
With the proposed rate increases residential rates will be less than $12 a week.
That $12 a week entitles people to use everything Council provides.
If a family of four visits the dentist for a regular checkup it will cost more than
the average residential rate contribution for a whole year. Watching just one movie
at the cinema costs $12.
Maintaining roads, drainage, footpaths and other public assets is a very expensive
exercise, with much of the work hidden under the ground.
Drainage renewal costs $1000 a metre, footpaths $120 a metre for urban and $350
a metre for commercial paths, a park litter bin costs $2000 and a street seat $1000.
Every time we switch on a new streetlight it costs up to $800.
What about rates at other Councils?
For a variety of historical reasons, the average residential rate paid in Tweed
Shire is relatively low, when compared with neighbours or councils of similar size.
The current Tweed average rate (2003/04) was just $601 per annum compared to $641
for other similar sized Councils.
The difference is even more marked in the business rating where Tweed Shire Council
charges $1636 compared to $4726 for other similar sized Councils.
Farmland rating is $1038 for the Tweed compared with state average of $1472.
| 8 |
How is Council financed? |
The role of Council is to help the local community run smoothly. It administers
laws and regulations to help maintain and improve facilities, as well as providing
a range of services for the local community.
Naturally these all require a lot of money and that money comes from a variety of
sources like rates and charges [38%], User charges [13%], Grants and contributions
[39%] with interest and other income making up the balance.
Council's rates and charges contribute around 38 per cent of the annual income of
$160 million and this compares with 50 per cent for similar sized Councils. This
puts us at a comparative disadvantage.
| 9 |
Do pensioners get any rebate of rates? |
Generally speaking, if you have been issued with a pensioner concession card from
Centrelink, or the Department of Veterans Affairs and reside on the property you
are claiming the pensioner rate rebate for, you will be eligible for rebates of
up to $250 for general and garbage rates (combined) and up to $87.50 per annum on
both water and sewer availability charges.
Tweed has a larger percentage of pensioners than most Local Government areas. In
fact it is 50 per cent higher than the state average.
|
Public forums are planned for Murwillumbah March 20 at 5.30pm at the Murwillumbah
Civic Centre and Tweed Heads April 10 at 5.30pm at the Tweed Heads Civic Centre
|
| A detailed list of proposed works and service improvements for the next 7 years
is available on Council website, Council offices and libraries. |
|
Local Government rates comprise less than 5 per cent of the total taxes collected
by Local, State and Federal Governments in Australia. |
|
|
|