ordinary meeting of council to be held on tuesday, 26 april 2005 at ...

Ordinary Meeting <strong>of</strong> Council - 26 April 2005 3 / 7
Item 3
S03096
21 March 2005
in<strong>to</strong> the Domestic Waste annual charge over a three year period. Council will subsidise the cost <strong>of</strong>
the new service <strong>to</strong> ratepayers over this period by drawing on funds previously collected and <strong>held</strong> in
the Domestic Waste Reserve.
The Domestic Waste Reserve currently has a balance <strong>of</strong> $2.7 million. In 2005/2006 Council will
utilise $946,800 from this reserve <strong>to</strong> fund the Domestic Waste Service.
The table <strong>be</strong>low provides a comparison <strong>of</strong> charges <strong>be</strong>tween the 2004/2005 and 2005/2006 financial
years:
WASTE MANAGEMENT 2005/2006 2004/2005
CHARGES
Residential with Green Waste $250 $230
Vacant Land $100 $80
Residential no Green Waste $190 $170
Additional Green Waste $80 $80
Flats, Home Units $230 $210
2 nd Waste Service $350 $330
Special rate variation – Environment levy
Council’s decision <strong>to</strong> support an application for a special rate variation is <strong>to</strong> enable the
implementation <strong>of</strong> a range <strong>of</strong> environmental programs. These have <strong>be</strong>en identified in the 2004/08
Management Plan and are consistent with a num<strong>be</strong>r <strong>of</strong> key regional strategies including the
Catchment Prints for Sydney Harbour and the Lower Hawkesbury/Nepean, the Hornsby Ku-ringgai
District Fire Management Plan and the Metropolitan Water Plan.
Council is seeking a 5% special rate increase for a period <strong>of</strong> seven years, commencing 1 July 2005.
This 5% increase would <strong>be</strong> subject <strong>to</strong> annual rate peg increases, which have <strong>be</strong>en estimated at 3.5%
in Council’s 10 Year Financial Model.
Based on a 5% increase, approximately $1,760,000 ($1,887,310 less pensioner rebates <strong>of</strong> $127,310)
would <strong>be</strong> generated in 2005/2006 with subsequent increases as projected in Council’s 10 year
financial model. This figure is based on 36,292 rate assessments less 3,290 pensioner rebates. This
additional income represents 1.9 per cent <strong>of</strong> the expected revenue for Council in the 2005/06 budget
and all funds generated would <strong>be</strong> restricted for the purpose <strong>of</strong> activities outlined in the application
<strong>to</strong> the Department <strong>of</strong> Local Government.
A copy <strong>of</strong> the application is bound separately as Appendix C.
User Charges and Fees
Council’s User Charges and Fees have increased by $1,009,100 or 7.1% in 2005/2006. Many <strong>of</strong>
Council’s fees are unable <strong>to</strong> <strong>be</strong> altered as they are statu<strong>to</strong>ry fees set by legislation. In addition, if a
proposed increase in fees would diminish the competitive advantage that Council has in the
marketplace, the fee has not <strong>be</strong>en increased in 2005/2006.
N:\050426-OMC-SR-03107-DRAFT MANAGEMENT PLAN 200.doc/lopez /7