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Bega Valley Shire CouncilBega Valley Shire Council

Special Rates Variation (SRV)

Background

Bega Valley Shire Council has notified IPART of its intention to apply for a three-year Special Rate Variation (SRV). The decision to formally apply for the SRV will be considered in February 2020 post community engagement throughout December and January. An increase in your rates through a SRV is about securing the future of our pools and reflects the history, hard work and fundraising of community groups over the last 60 years.

The proposed SRV, if applied for and then approved by IPART, would allow Council to increase general income above the rate peg increase, which is annually determined by IPART.  Council has inherited many of the Shire’s six pools over the last 30 years and now we are focused on ensuring they are all maintained into the future.

Here's how a special rate variation works

  • Your rates now
    Rates rise every year by about 2.5%, this is called the 'rate peg'.
  • Your rates with a special rate variation increase
    2.92%, 2.76%, 2.63% through the proposed SRV over three years, in additionn to the rate peg, we would reach our goal of being able to fund all six pools into the future (see table below.

Image of How a special rate variation works.

What is the percentage increase in rates per year?

The table below presents the proposed percentage increases. It is important to note that the cumulative impact isn’t a sum of the annual increases. It is the difference between what rates are at the end of the three-year period compared to the start.

  2020/2021 2021/2022 2022/2023 Cumulative Impact
Rate Peg 2.60% 2.50% 2.50% 7.80%
SRV Portion 2.92% 2.76% 2.63% 9.00%
Total Increase 5.52% 5.26% 5.13% 16.80%

Note: Figures are rounded. 2.6% rate peg confirmed for 2020/21

These rate increases would be permanently retained and the funding would only be able to be spent on the operation, maintenance and upgrades of the Shire’s six pools.

Special Rate Variations can be for one or several years and can be temporary or permanently retained in the rates base.

Council’s current intention is for this special rate variation to be ongoing to meet the adopted goal of retaining all six pools across the Shire, which means that once the three SRV rate increases are applied to create a new rates base, the rate base will be permanently increased.

How much extra would the SRV need to raise per year?

The combined cost for the future operations, maintenance and ongoing capital renewal / upgrade costs to meet the adopted six pool goal is $2,028,451 (in 2019 dollars). To read move about the six-pool goal check out the Swimming Pool Strategy.

Council had initially discussed with the community a single year 11% SRV increase. Council resolved in November to notify IPART of its intention to apply for a gradual SRV increase over three years.   The rate increase does not affect waste, water or sewerage rates.

Bringing in a SRV over 3 years would help to ensure the increase is gradual for ratepayers.

For the average ratepayer*, this year you pay $1,125.22

With the proposed SRV:

  • 2020/2021 you would pay $1,187.31 – 63 cents per week of this amount is contributed by the SRV.
  • 2021/2022 you would pay $1,254.07 – $1.36 per week of this amount is contributed by the SRV.
  • In 2022/2023 you would pay $1,318.36 – $2.02 per week of this amount is contributed by the SRV.
    2019/20
Current year
2020/21 2021/22 2022/23
RESIDENTIAL Rate peg   (2.6%) (2.5%) (2.5%)
Average land value $151,907 Rates without proposed SRV - rate peg only $1,125.22 $1,154.47 $1,183.43 $1,213.11
59.66% of assessments under the average Our proposed SRV increase   (2.92%) (2.76%) (2.63%)
Rates with proposed SRV   $1,187.31 $1,254.07 $1,318.36
Impact of SRV/Year   $32.84 $70.64 $105.25
Impact of SRV/Week   $0.63 $1.36 $2.02
    2019/20
Current year
2020/21 2021/22 2022/23
FARMLAND Rate peg   (2.6%) (2.5%) (2.5%)
Average land value $407,450 Rates without proposed SRV - rate peg only $2,167.26 $2,223.68 $2,279.51 $2,336.73
70.00% of assessments under the average Our proposed SRV increase   (2.92%) (2.76%) (2.63%)
Rates with proposed SRV   $2,286.92 $2,407.84 $2,531.64
Impact of SRV/Year   $63.24 $128.33 $194.91
Impact of SRV/Week   $1.22 $2.47 $3.75
    2019/20
Current year
2020/21 2021/22 2022/23
BUSINESS Rate peg   (2.6%) (2.5%) (2.5%)
Average land value $300,934 Rates without proposed SRV - rate peg only $2,676.64 $2,746.17 $2,812.54 $2,880.55
59.13% of assessments under the average Our proposed SRV increase   (2.92%) (2.76%) (2.63%)
Rates with proposed SRV   $2,824.27 $2,967.96 $3,116.25
Impact of SRV/Year   $78.10 $155.42 $235.70
Impact of SRV/Week   $1.50 $2.99 $4.53

Note: Thes figures are based on average re business and farmland rates in the Bega Valley Shire. The assumed te peg increase for 2021/22 and 202/23 is modelled at 2.5% as advised by IPART (confirmed 2.6% rate peg for 2020/21). Figures are rounded.

What impact will the SRV have on my rates?

If an SRV application is lodged, and is successful, who pays what is not the same across all ratepayers. Council’s general rates are calculated using two parts. The first, the base rate is the same for all ratepayers, the second component is linked to the land valuation for the property. The amount Council applies for is indicated as a percentage rise in income generated and does not directly relate to the increase on each individual property. To look at the impact of this and to calculate what your rates would look like if the proposed SRV was applied visit our Rate calculator (we are fine-tuning our Rate Calculator and will have it available online shortly) . Please have your current yearly rate notice at hand to help you make this calculation. This will show what the impact would have been in this year and will provide an indication as to the amount of the increase for your property next year.

image of calculatorWork out how much you will pay by using our
online rate calculator

(we are fine-tuning our Rate Calculator and will have it available online shortly)

It is important to note that there are new land valuations expected to arrive soon which may impact what the increase in rates on an individual property will be. This means that although the calculator is a useful tool, it may not directly reflect your first years rate notice if the SRV is applied for and approved.. Land valuations are done by the NSW Valuer General independent of Council, meaning Council has no control over the land value set for an individual property that impacts its rates.

Have Your Say Drop In Sessions

These community sessions have been cancelled due to the current fire emergency. Further information on future consideration of this will be circulated following the work on the current emergency.

  • CANCELLED - Tura Murrang Library
    Tuesday 14 January, 2pm to 6pm
  • CANCELLED - Bega Valley Commemorative Civic Centre
    Wednesday 15 January, 2pm to 6pm
  • CANCELLED - Bermagui Library
    Thursday 16 January, 2pm to 6pm

Who's listening

Project timeline

 

Frequently Asked Questions

Frequently Asked Questions - Swimming Pools Strategy

 

Frequently Asked Questions - Special Rate Variation

 

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