Securing Our Future
Council’s Rate Increase Determination
The Independent Pricing and Regulatory Tribunal (IPART) have announced their determination of Lake Macquarie City Council’s rate variation application. The determination enables Council to raise the average residential rates by an average of 7.7% per year over 7 years, and the average business rate 9.9% per year over 7 years. The approved increase is consistent with Council’s Option 2 proposal as outlined in the community consultation last year.
This increase will mean an average increase of $63.61 per year or $1.22 per week for residential rates (based on residential land value of $175,000) and an average annual increase of $ 312 per year or $6.13 per week for businesses (based upon a land value of $400,000)
Note: Approximately 46% of properties within Lake Macquarie have a land value of $175,000 or less.
The proposed increase includes the rate peg amount, which for 2012/13, has been set at 3.6%
Indicative annual increases in average residential and business rates 2012/13 to 2018/19 are contained in the below table.
| Annual % increase | Annual $ rate | |||
|---|---|---|---|---|
| Year | Residential | Business | Residential | Business |
| 2011/12 | — | — | 949 | 3,284 |
| 2012/13 | 9.75 | 14.00 | 1,042 | 3,743 |
| 2013/14 | 9.50 | 14.00 | 1,141 | 4,267 |
| 2014/15* | 6.00 | 7.50 | 1,209 | 4,588 |
| 2015/16 | 5.50 | 6.00 | 1,276 | 4,863 |
| 2016/17 | 5.25 | 5.25 | 1,343 | 5,118 |
| 2017/18 | 4.75 | 4.75 | 1,407 | 5,361 |
| 2018/19 | 4.75 | 4.75 | 1,473 | 5,616 |
* The increase in 2014/15 has been adjusted for the impact of the expiring special variation for the Sustainability Levy which will expire in June 2014.
The application to IPART was made to enable Council to enhance existing assets and levels of service to meet the needs and priorities of our growing city while securing long-term financial sustainability for Council.
The proposed increase will enable Council to maintain and improve current levels of service.
During 2011, Council undertook an extensive program of community consultation over a six-month period to find out which services our residents value most and are willing to pay for through their rates. During this engagement process, we heard that residents did not want to a reduction in Council services, and the majority of participants were willing to pay for enhanced services like better roads, better sportsgrounds and playgrounds, and continued improvements to our natural environment, especially around the lake.
Download a copy of the full IPART determination report.
A Guide to Council's IPART Submission
Part B of Council’s IPART application is them main body of the application, and explains in detail Council’s proposed rate increase. As prescribed by the IPART guidelines, information in Part B is set out as follows:
- Section 1 – Introduction and outline of application format
- Section 2 – Application overview
- Section 3 – Need for the variation
- Section 4 – Community engagement/consultation undertaken
- Section 5 – Rating structure and impact on ratepayers
- Section 6 – Council’s financing strategy
- Section 7 – Productivity improvements and cost containment strategies undertaken by Council
- Section 8 – Implementation of Integrated Planning and Reporting Framework (IP&RF)
- Section 9 – Council’s special rate variation history
Following Council’s lodgement of this application on 24 February 2012, IPART allowed a period for community feedback. The period for submissions closed on Friday 20 April 2012.