weighted average rate rise

My question regarding the rate rise was read out at last nights council meeting with the following partial response:

The 6.9% rate increase reported by the Council and local press does reflect a weighted average, taking into consideration general rates, garbage charges and the municipal charge. The formulae used by the Council in reaching the 6.9% outcome is the same as has been used in previous years, so that it is easy for the community to compare apples with apples.

RATE INCREASE QUERY – Council Meeting 9^th June 2009

Shire of Yarra Ranges calculates the average rate increase on a weighted average basis as follows

GENERAL RATES

2008/09 Annualised General Rates $66,283,752

2009/10 General Rates (this excludes supplementary rates) $71,702,879

% increase in General Rates as per Budget document 8.18%

The annualised rates are calculated so that we compare ‘apples with apples’ – we do this by annualising supplementary rates that occur during 2008/09 to reflect a full year of rates (which will apply in our calculations for 2009/10). Supplementary rates for 2009/10 are excluded for the same reason.

At no place in the budget document do we show an annualised 2008/09 calculation as it does not reflect what we actually receive but is merely used to establish the rate base for 2009/10 calculations

GARBAGE CHARGES

2008/09 Annualised Garbage Charges $10,809,514

2009/10 Garbage Charges (this excludes supplementary charges) $10,809,514

% increase in Garbage Charges (no change to waste chg as per Pg 41 of budget doc) 0.00%

MUNICIPAL CHARGE

2008/09 Annualised Municipal Charge $1,443,888

2009/10 Municipal Charge (this excludes supplementary charges) $1,443,888

% increase in Municipal Charge (no change to municipal chg as per Pg 43 of budget doc) 0.00%

AVERAGE WEIGHTED RATES (General, Garbage and Municipal Charge)

2008/09 Annualised Rates & Charges $78,537,154

2009/10 Rates & Charges (this excludes supplementary rates) $83,956,281

% increase in Rates & Charges as per Budget document 6.9%

Note – General rates and charges reported on Pg 14 of the budget document total $85.846m which includes $0.38m supplementary rates (refer pg 14 –item 4.1.1 No 1) and Green Waste Bin Service cost of $1.52m (refer pg 42-item 2.9) .

SUMMARY (rounding causes slight discrepancy)

2008/09(annualised) 2009/10

Genaral Rates $66.284m $71.703m as above

Garbage charge $10.810m $10.810m as above

Municipal charge $1.444m $1.444m as above

Supplementary rates $0.380m $0.380m as per pg 14

Green waste service $1.63m $1.52m as per pg 42

Total $80.548m $85.857 per pg 14 of budget document

Regards
Rebecca McKenzie	Director, Corporate Services