Supplementary AGENDA 1R |
Distributed on 26 February 2021
Extraordinary Council Meeting
MONDAY 1 MARCH 2021
6.30PM
|
Extraordinary Council Meeting 1 March 2021
|
MEETING AGENDA – PRECIS SUPPLEMENTARY ITEMS |
The following attachment appears as late item as information required for the preparation of the report was not available at the time of distribution of the Business Paper.
1 Reports for Council Decision
ITEM Page
C0321(1) Item 1 Harmonisation of Rates
(Attachment 5 - Rates Harmonisation Analysis $565 Minimum Rate) 3
Council requested further analysis with the inclusion of the 2021/22 statutory maximum minimum of $565.
Two options for analysis and comparison, both with $600k income movement from Business General to Business Mall:
• option 3 with maximum minimum of $565 for both Residential and Business
• option 4 with minimum of $850 for Residential and $820 for Business.
• The following slide details the impact of the 2 options for the Residential and Business categories in terms of:
• land value cap amount for each minimum
• number of assessments captured as minimum.
Note: for the next slide both Business Airport and Mall have high land values, hence were not affected by the minimum amount and therefore was not included in the analysis.
Category and Subcategory |
Option 3 Minimum Land Value Number of Amount Capped Minimum |
Option 4 Minimum Land Value Number of Amount Capped Minimum |
||||
Business General Industrial Marrickville Industrial St Peters Industrial St Peters North Industrial Camperdown Residential |
565 |
141,082 |
441 |
820 |
204,756 |
653 |
565 |
100,483 |
114 |
820 |
145,833 |
122 |
|
565 |
99,714 |
3 |
820 |
144,718 |
14 |
|
565 |
99,662 |
1 |
820 |
144,642 |
1 |
|
565 |
100,054 |
3 |
820 |
145,212 |
6 |
|
565 |
439,993 |
24,185 |
850 |
661,937 |
30,945 |
Residential options
Ashfield |
Base Amount $727 |
Minimum $565 |
Minimum $850 |
Leichhardt |
Minimum Amount $686 |
Minimum $565 |
Minimum $850 |
Marrickville |
Minimum Amount $710 |
Minimum $565 |
Minimum $850 |
• The following slide details the change in total rates income for the former councils.
• The general trend still remains, regardless of the minimum amount, rates income moves from former Ashfield to Marrickville.
• Under the $565 minimum structure, option 3, more income moves from Ashfield to Marrickville than with option 4.
• Former Leichhardt income movement is slightly lower under the
$565 minimum than the $850 minimum.
Former |
Current |
Current |
Option 3 |
Option 3 |
Option 4 Income $850 M $'000 |
Option 4 Income $850 M % |
Councils Residential |
Income $'000 |
Income % |
Income $565 M |
Income $565 M |
||
|
|
|
$'000 |
% |
||
Ashfield |
23,971 K |
27% |
18,828 K |
21% |
19,647 K |
22% |
Leichhardt |
32,688 K |
37% |
33,997 K |
38% |
32,629 K |
36% |
Marrickville |
30,653 K |
35% |
36,968 K |
41% |
37,517 K |
42% |
Total |
87,312 K |
100% |
89,792 K |
100% |
89,792 K |
100% |
• The following slide details the $ range of increases and decreases for the former councils.
• With higher minimum of $850, former Marrickville will experience more increases at the higher $ range.
• Former Ashfield will experience a reduction on both minimum options, greater under option 3.
• Former Leichhardt will experience higher increases with minimum amount of $565.
Residential |
Option 3 |
|
|
|
|
|
Former Council |
Marrickville |
|
Ashfield |
|
Leichhardt |
|
$ Rate Increase Range |
# of Assessment |
% of Assessment |
# of Assessment |
% of Assessment |
# of Assessment |
% of Assessment |
Below $-400 |
0 |
0.0% |
6,705 |
41.4% |
- |
0.0% |
$-400 to $-200 |
- |
0.0% |
5,933 |
36.6% |
- |
0.0% |
$-200 to $-75 |
12,306 |
37.0% |
1,473 |
9.1% |
5,692 |
24.2% |
$-75 to $0 |
376 |
1.1% |
617 |
3.8% |
506 |
2.1% |
$0 to $75 |
423 |
1.3% |
603 |
3.7% |
2,230 |
9.5% |
$75 to $200 |
965 |
2.9% |
639 |
3.9% |
13,995 |
59.4% |
$200 to $400 |
10,462 |
31.5% |
151 |
0.9% |
912 |
3.9% |
Above $400 |
8,689 |
26.2% |
92 |
0.6% |
217 |
0.9% |
|
33,221 |
100% |
16,214 |
100% |
23,552 |
100% |
Residential |
Option 4 |
|
|
|
|
|
Former Council |
Marrickville |
|
Ashfield |
|
Leichhardt |
|
$ Rate Increase Range |
# of Assessment |
% of Assessment |
# of Assessment |
% of Assessment |
# of Assessment |
% of Assessment |
Below $-400 |
0 |
0.0% |
4,014 |
24.8% |
35 |
0.1% |
$-400 to $-200 |
1 |
0.0% |
6,487 |
40.0% |
269 |
1.1% |
$-200 to $-75 |
1 |
0.0% |
3,919 |
24.2% |
5,493 |
23.3% |
$-75 to $0 |
3 |
0.0% |
1,323 |
8.2% |
10,214 |
43.4% |
$0 to $75 |
2 |
0.0% |
392 |
2.4% |
583 |
2.5% |
$75 to $200 |
18,858 |
56.8% |
44 |
0.3% |
6,935 |
29.4% |
$200 to $400 |
13,494 |
40.6% |
13 |
0.1% |
4 |
0.0% |
Above $400 |
861 |
2.6% |
22 |
0.1% |
18 |
0.1% |
|
33,221 |
100% |
16,214 |
100% |
23,552 |
100% |
Residential |
2020/21 |
||||
Land Values |
IWC Proposed minimum $565 |
IWC Proposed minimum $850 |
Ashfield |
Leichhardt |
Marrickville |
500,000 |
722 |
850 |
1,229 |
686 |
710 |
750,000 |
1,084 |
963 |
1,477 |
1,008 |
778 |
1,000,000 |
1,445 |
1,284 |
1,724 |
1,344 |
1,037 |
1,500,000 |
2,167 |
1,926 |
2,219 |
2,016 |
1,556 |
3,000,000 |
4,334 |
3,852 |
3,702 |
4,032 |
3,111 |
5,000,000 |
7,224 |
6,421 |
5,681 |
6,720 |
5,185 |
• Former Ashfield will experience a reduction under both options, with a greater reduction under option 3, $565 minimum, due to current rate structure with base amount of $727, and also with lower land value comparatively with the other former councils.
• Former Leichhardt current structure is minimum amount $686, in option 3 the lower percentile will experience a decrease due to lower minimum at $565 before higher ad valorem kicked in, and vice versa under option 4.
• Former Marrickville will generally experience increases except for lower percentile in option 3, due to higher current minimum amount of $710, with the greatest impact being option 4.
|
Residential |
Assessments |
2019 Land values |
2020-21 Rates |
Option 3 rates |
Option Change |
3 $ |
Option 3 % impact |
Option 4 rates |
Option 4 Change $ |
Option 4 Change % |
|
|
Ashfield |
16,214 |
|
|
|
|
|
|
|
|
||
0 |
Lowest |
1 |
1,150 |
322 |
565 |
243 |
75.6% |
266 |
( |
56) |
(17.4%) |
|
0.1 |
10th percentile |
1,621 |
191,884 |
921 |
565 |
( |
356) |
(38.7%) |
850 |
( |
71) |
(7.7%) |
0.2 |
20th percentile |
1,621 |
265,998 |
994 |
565 |
( |
429) |
(43.2%) |
850 |
( |
144) |
(14.5%) |
0.3 |
30th percentile |
1,621 |
317,364 |
1,046 |
565 |
( |
481) |
(46.0%) |
850 |
( |
196) |
(18.7%) |
0.4 |
40th percentile |
1,621 |
370,000 |
1,097 |
565 |
( |
532) |
(48.5%) |
850 |
( |
247) |
(22.5%) |
0.5 |
50th percentile |
1,621 |
500,000 |
1,217 |
709 |
( |
507) |
(41.7%) |
850 |
( |
367) |
(30.1%) |
0.6 |
60th percentile |
1,621 |
868,000 |
1,584 |
1,241 |
( |
343) |
(21.6%) |
1,103 |
( |
481) |
(30.3%) |
0.7 |
70th percentile |
1,621 |
1,050,000 |
1,773 |
1,517 |
( |
257) |
(14.5%) |
1,348 |
( |
425) |
(24.0%) |
0.8 |
80th percentile |
1,621 |
1,230,000 |
1,942 |
1,763 |
( |
179) |
(9.2%) |
1,567 |
( |
375) |
(19.3%) |
0.9 |
90th percentile |
1,621 |
1,570,000 |
2,278 |
2,254 |
( |
24) |
(1.1%) |
2,003 |
( |
275) |
(12.1%) |
1.0 |
Highest |
1,621 |
13,400,000 |
13,989 |
19,360 |
5,370 |
38.4% |
17,207 |
3,218 |
23.0% |
||
|
Leichhardt |
23,552 |
|
|
|
|
|
|
|
|
||
0 |
Lowest |
1 |
3,750 |
5 |
565 |
560 |
11110.3% |
213 |
207 |
4116.3% |
||
0.1 |
10th percentile |
2,355 |
214,816 |
686 |
565 |
( |
121) |
(17.6%) |
850 |
164 |
23.9% |
|
0.2 |
20th percentile |
2,355 |
345,455 |
686 |
565 |
( |
121) |
(17.6%) |
850 |
164 |
23.9% |
|
0.3 |
30th percentile |
2,355 |
597,442 |
779 |
839 |
60 |
7.8% |
850 |
71 |
9.1% |
||
0.4 |
40th percentile |
2,355 |
824,000 |
1,090 |
1,173 |
83 |
7.6% |
1,043 |
( |
47) |
(4.3%) |
|
0.5 |
50th percentile |
2,355 |
931,000 |
1,243 |
1,336 |
93 |
7.5% |
1,188 |
( |
55) |
(4.5%) |
|
0.6 |
60th percentile |
2,355 |
1,030,000 |
1,384 |
1,488 |
104 |
7.5% |
1,323 |
( |
62) |
(4.5%) |
|
0.7 |
70th percentile |
2,355 |
1,180,000 |
1,572 |
1,690 |
118 |
7.5% |
1,502 |
( |
70) |
(4.5%) |
|
0.8 |
80th percentile |
2,355 |
1,340,000 |
1,788 |
1,922 |
134 |
7.5% |
1,708 |
( |
80) |
(4.5%) |
|
0.9 |
90th percentile |
2,355 |
1,600,000 |
2,137 |
2,297 |
160 |
7.5% |
2,042 |
( |
95) |
(4.5%) |
|
1.0 |
Highest |
2,355 |
24,200,000 |
32,525 |
34,963 |
2,438 |
7.5% |
31,075 |
( |
1,449) |
(4.5%) |
|
|
Marrickville |
33,221 |
|
|
|
|
|
|
|
|
||
0 |
Lowest |
1 |
48,323 |
247 |
565 |
318 |
129.1% |
173 |
( |
74) |
(29.8%) |
|
0.1 |
10th percentile |
3,322 |
176,878 |
710 |
565 |
( |
145) |
(20.4%) |
850 |
140 |
19.7% |
|
0.2 |
20th percentile |
3,322 |
233,272 |
710 |
565 |
( |
145) |
(20.4%) |
850 |
140 |
19.7% |
|
0.3 |
30th percentile |
3,322 |
303,898 |
710 |
565 |
( |
145) |
(20.4%) |
850 |
140 |
19.7% |
|
0.4 |
40th percentile |
3,322 |
567,000 |
710 |
819 |
109 |
15.4% |
850 |
140 |
19.7% |
||
0.5 |
50th percentile |
3,322 |
741,000 |
765 |
1,066 |
301 |
39.3% |
948 |
182 |
23.8% |
||
0.6 |
60th percentile |
3,322 |
840,400 |
871 |
1,214 |
342 |
39.3% |
1,079 |
208 |
23.8% |
||
0.7 |
70th percentile |
3,322 |
932,000 |
967 |
1,345 |
379 |
39.2% |
1,196 |
229 |
23.7% |
||
0.8 |
80th percentile |
3,322 |
1,070,000 |
1,110 |
1,546 |
436 |
39.3% |
1,374 |
264 |
23.8% |
||
0.9 |
90th percentile |
3,322 |
1,270,000 |
1,317 |
1,835 |
518 |
39.3% |
1,631 |
314 |
23.8% |
||
1.0 |
Highest |
3,322 |
36,500,000 |
37,853 |
52,733 |
14,881 |
39.3% |
46,870 |
9,017 |
23.8% |
• In option 3, the percentage range is between minus 48.5% to plus 39.3%, with net percentage range of minus 96.3%. The dollar range is between minus $532 to plus $518, with net dollar range of minus $947.
• In option 4, the percentage range is between minus 30.3% to plus 23.9%, with net percentage range of plus 48.8%. The dollar range is between minus $481 to plus $314, with net dollar range of minus $834.
• Option 4 has overall less impact when compared to option 3.
Ashfield |
General |
Minimum Amount $820 |
Minimum $565 |
Minimum $850 |
Leichhardt |
General |
Minimum Amount $686 |
Minimum $565 |
Minimum $850 |
Marrickville |
General |
Ad valorem |
Minimum $565 |
Minimum $850 |
Marrickville |
Industrial Marrickville |
Ad valorem |
Minimum $565 |
Minimum $850 |
Marrickville |
Industrial St Peters |
Ad valorem |
Minimum $565 |
Minimum $850 |
Marrickville |
Industrial St Peters North |
Ad valorem |
Minimum $565 |
Minimum $850 |
Marrickville |
Industrial Camperdown |
Ad valorem |
Minimum $565 |
Minimum $850 |
Marrickville |
Marrickville Metro |
Ad valorem |
Minimum $565 |
Minimum $850 |
Marrickville |
Airport |
Ad valorem |
Minimum $565 |
Minimum $850 |
• The following slide details the change in total rates income for the former councils.
• The movement of income between option 3 and 4 are very similar, with income shifting from former Leichhardt to former Marrickville and former Ashfield.
• Both options includes income movement of $600k from Business General to Business Mall.
Former |
Current |
Current |
Option 3 |
Option 3 |
Option 4 |
Option 4 |
Councils |
Income |
Income % |
Income |
Income |
Income |
Income |
Business |
$'000 |
|
$565 M |
$565 M |
$850 M |
$850 M |
General |
|
|
$'000 |
% |
$'000 |
% |
Ashfield |
4,921 K |
20% |
5,249 K |
21% |
5,249 K |
21% |
Leichhardt |
12,580 K |
50% |
9,558 K |
39% |
9,579 K |
39% |
Marrickville |
7,544 K |
30% |
9,638 K |
39% |
9,618 K |
39% |
Total |
25,045 K |
100% |
24,445 K |
100% |
24,445 K |
100% |
• The following slide details the range of increases and decreases for the former councils.
• In both options, former Marrickville will experience most increases above $400, with option 4 slight greater.
• Former Leichhardt will see significant reductions below $400, with both options having a very similar impact.
• Former Ashfield will also experience increases above $400, with 32% in option 3 and 26% in option 4.
Business General |
Option 3 |
|
|
|
|
|
Former Council |
Marrickville |
|
Ashfield |
|
Leichhardt |
|
$ Rate Increase Range |
# of Assessment |
% of Assessment |
# of Assessment |
% of Assessment |
# of Assessment |
% of Assessment |
Below $-800 |
0 |
0.0% |
- |
0.0% |
1,024 |
60.0% |
$-800 to $-400 |
1 |
0.1% |
1 |
0.1% |
290 |
17.0% |
$-400 to $-200 |
1 |
0.0% |
111 |
13.4% |
191 |
11.2% |
$-200 to $0 |
1 |
0.0% |
44 |
5.3% |
200 |
11.7% |
$0 to $200 |
132 |
6.9% |
160 |
19.3% |
2 |
0.1% |
$200 to $400 |
227 |
11.9% |
250 |
30.1% |
0 |
0.0% |
$400 to $800 |
704 |
36.7% |
143 |
17.2% |
- |
0.0% |
Above $800 |
850 |
44.4% |
121 |
14.6% |
- |
0.0% |
|
1,917 |
100% |
830 |
100% |
1,708 |
100% |
Business General |
Option 4 |
|
|
|
|
|
Former Council |
Marrickville |
|
Ashfield |
|
Leichhardt |
|
$ Rate Increase Range |
# of Assessment |
% of Assessment |
# of Assessment |
% of Assessment |
# of Assessment |
% of Assessment |
Below $-800 |
0 |
0.0% |
- |
0.0% |
1,050 |
61.5% |
$-800 to $-400 |
1 |
0.1% |
1 |
0.1% |
281 |
16.5% |
$-400 to $-200 |
1 |
0.0% |
- |
0.0% |
129 |
7.5% |
$-200 to $0 |
1 |
0.0% |
156 |
18.8% |
54 |
3.2% |
$0 to $200 |
58 |
3.1% |
243 |
29.3% |
192 |
11.3% |
$200 to $400 |
214 |
11.2% |
214 |
25.8% |
0 |
0.0% |
$400 to $800 |
862 |
45.0% |
118 |
14.2% |
- |
0.0% |
Above $800 |
779 |
40.7% |
98 |
11.8% |
- |
0.0% |
|
1,917 |
100% |
830 |
100% |
1,708 |
100% |
Business General |
2020/21 |
||||
Land Values |
IWC Proposed minimum $565 |
IWC Proposed minimum $820 |
Ashfield |
Leichhardt |
Marrickville |
500,000 |
2,030 |
2,002 |
1,803 |
2,517 |
1,543 |
750,000 |
3,045 |
3,004 |
2,705 |
3,775 |
2,314 |
1,000,000 |
4,061 |
4,005 |
3,606 |
5,033 |
3,085 |
1,500,000 |
6,091 |
6,007 |
5,409 |
7,550 |
4,628 |
3,000,000 |
12,182 |
12,014 |
10,818 |
15,100 |
9,256 |
5,000,000 |
20,303 |
20,024 |
18,030 |
25,166 |
15,427 |
• Former Ashfield will experience slightly higher increases and decreases under option 3, while option 4 will have the least impact comparatively with current structure minimum amount of
$820.
• Former Leichhardt current structure is a minimum of $686, in both options former Leichhardt will experience a decrease due to lower ad valorem.
• Former Marrickville will generally experience increases due to higher ad valorem, with greater increase under option 4.
• In option 3, the percentage range is between minus 31.9% to plus 24.4%, with net percentage range of minus 24.8%. The dollar range is between minus $3,251 to plus $1,053, with net dollar range of minus $3,152.
• In option 4, the percentage range is between minus 25.5% to plus 56.1%, with net percentage range of plus 40.2%. The dollar range is between minus $3,399 to plus $863, with net dollar range of minus $3,925.
• Option 3 has less overall impact when compared to option 4.