A rating strategy is the process by which a Council systematically considers the factors of importance that inform its decisions about the rating system. The rating system determines how a Council will raise money from properties within the municipality.
It does not influence the total amount of money to be raised, only the share of revenue contributed by each property. The rating system comprises a valuation base and actual rating instruments that are used to calculate an individual property owners’ liability for rates.
A rating strategy comprises a number of components including the following.
- A review of rationales and objectives
- Related research
- The development of definitions
- Rate modelling
- The development of required documentation
- Opportunity for public review/consultation
- Results of comments received
Council last reviewed its rating strategy in 2015 with the implementation of most recommendations from that review commencing in the 2015-2016 Budget.
In May last year, the council commenced a process for the 2019-2020 review of the strategy.
A Rating Strategy Reference Group was formed to provide input and feedback on the current strategy in the form of a report. The group was made up of ratepayers representing different sectors of the community as well as councillors and council staff.
The recommendations of the group formed an update to the strategy.
The only change proposed to the current differentials is an increase of the differential for Development Use Land from 1.00 to 2.00 over a two-year period (1.50 in 2019-2020 and 2.0 in 2020-2021).