Rates
Annually the City of Fremantle sets a “rate in the dollar” and a “minimum payment” amount that is applied to all rateable properties.
Rates are calculated by multiplying the Gross Rental Value (GRV), which is supplied by Landgate Valuation Services, by the “rate in the dollar”. Where this calculation fails to equate to the “minimum payment”, then the minimum payment is levied on the property. Any queries relating to the GRV are to be directed to Landgate Valuation Services by calling 08 9429 8549 or 08 9429 8542.
Differential rates known as general, city centre commercial, vacant residential land, undeveloped CBD property and nightclubs will be applicable for the 2011-2012 financial period and will be:
Differential rates
|
Rate in dollar
|
Minimum payment
|
|
General rate
|
$0.06781
|
$1014.00
|
| City centre commercial |
$0.07161
|
$1014.00 |
| Vacant residential land |
$0.12827 |
$1014.00 |
| Undeveloped CBD zone property |
$0.13562
|
$1014.00
|
| Nightclubs |
$0.13562
|
$1014.00 |
Variation to advertised differential rates
The differential rates adopted in the budget are different to the rates advertised as:
- New gross rental values (GRV) from Landgate’s Valuation Services that will apply for the next triennium from 1 July 2011 varied to the assumptions that had been made in developing the rates that were advertised
- Due to the increase in residential GRV’s relative to commercial and industrial, the minimum rate was increased to more closely reflect the increases on residential properties
- The percentage value of revenue to be raised compared to 2010–2011 was increased to 6.9% compared to 5.0% in rates advertised.
Based on the budgeted 2011–2012 revenue along with a reconciliation of the total project an adjustment amount of 2.692% of the original charge amount will be credited to each UGP assessment to reflect the reconciliation of the expenditure and revenues of the project.
Objects and reasons for differential rates and minimum payment
For the 2011–2012 financial year, the City has five (5) differential rates namely, “general rate”, “city centre commercial”, “nightclubs”, “undeveloped CBD zone property” and “vacant residential land”.
City centre commercial differential rate
On 1 July 2008 the City took over management of the Fremantle First brand and introduced a differential rate to fund the management, administration and delivery of marketing activities aimed at enhancing the economic and social viability, and the general amenity, of the Fremantle commercial business district (CBD) and environs. After the successful establishment of a comprehensive CBD marketing program over a two year period, council, from the 2010–11 financial year, shifted the focus of the expenditure of the City centre commercial differential rate revenue to economic development activities that build the strength and sustainability of business, retail and commercial sectors of the CBD and environs.
The rate is applicable to all commercial businesses located within the boundaries of the City centre zone and the abutting Metropolitan Regional reservesbeing areas bounded by Parry Street, Norfolk Street and including those businesses located in Fremantle Fishing Boat and Challenger Harbours and on Victoria Quay.
The activities to be undertaken with the City centre commercial differential rate revenue in the 2011–12 financial year will be aligned to the CBD and environs focused economic development strategic imperatives in the City of Fremantle Strategic Plan 2010–15 and the similarly focused actions in the Fremantle Economic Development Strategy 2011-2015.
In 2011–2012 it is estimated an additional $283,500 will be raised from this differential rate compared to what would have been raised from a general differential rate.
Nightclubs differential rate
Nightclubs that operate to the early hours of the morning present numerous challenges to the community and council in the level of resources that are required to maintain the amenity of the area where the nightclubs are located and deal with the behaviour of the nightclub patrons both prior to arrival and on departure from the clubs. These issues cover: noise complaints, vandalism, increased street sweeping and cleaning costs, unsociable behaviour, facilitating safe access to public transport and taxis for all visitors to the city including nightclub patrons and CCTV surveillance.
Due the increased costs directly and indirectly linked to the operation of these premises, council is setting a differential rate that is double the general differential rate so that nightclubs that remain open after 2.00 am make an additional contribution towards those costs that are incurred in maintaining the amenity in proximity to the nightclubs and the monitoring of peoples behaviours within the vicinity.
Undeveloped CBD zone property differential rate
Land which is located in the CBD zone of the local planning scheme that is not fit for purpose or is vacant or does not have significant building development on site of more than 20% of the site area will have a undeveloped CBD zone property differential rate applied to it.
The criteria for this differential are property located within the City centre zone under LPS4 which is either;
a) Unfit for occupancy or use for its intended purpose by virtue of the deterioration of the condition of existing buildings on the land, or
b) Vacant or developed with buildings which occupy 20% or less of the site area, excepting where a current valid Planning Approval and Building License exists for the development of the land to occupy greater than 20% of the site area.
Vacant residential land differential rate
Under the Valuation of Land Act 1978 (VLA) land for which an active rental market doesn’t exist is required to be valued on a prescribed percentage of capital value. Until recently only one prescribed percentage has been allowed and that was set at 5% in 1979. Land Valuation Services reports that owners of vacant residential land have increasingly expressed their concern about higher GRV’s on their land than those that applied to neighbouring improved properties. New regulations under the VLA will apply from 1 July 2011 and will apply a single rate of 3% to all residential vacant land while the existing 5% will continue to apply to all remaining vacant land (i.e., commercial and industrial).
The City of Fremantle considers the development of vacant rateable land in the best interests of the community and the value of rates paid for vacant land should be consistent for all types of vacant land. Therefore as a consequence of the reduction in the prescribed rate for residential vacant land from 1 July 2011, a vacant residential land differential rate is being introduced to produce rate assessment value for vacant residential land equivalent to what a prescribed percentage of 5% would have produced. On this basis, all vacant property owners would be rated consistently.
General differential rate
The general differential applies to all properties that are not specifically covered by the city centre commercial differential rate, nightclubs differential rate, undeveloped CBD zone property differential rate or the vacant residential land differential rate.
Minimum payment
The City sets a minimum payment to ensure that each property contributes a minimum amount towards services, upgrade and maintenance of the municipality. The minimum payment also reflects that the cost of standard rubbish collection is basically the same for each property.
Waste charges
With the exception of residential rate exempt properties, the City includes the waste charge applicable to a single standard rubbish collection within each property’s rate levy. Residential rate exempt properties will incur a waste charge which for the 2011-2012 financial period will be $446.00.
State government emergency services levy
The emergency services levy is a compulsory State Government levy which is forwarded to the Fire and Emergency Services Authority of Western Australia (FESA) to fund services such as fire and rescue services, bush fire brigades and state emergency services throughout Western Australia. For further information please refer to the enclosed brochure, FESA website at www.fesa.wa.gov.au or call 1300 136 099.
Objections and appeal provisions
Rate Record
The Local Government Act 1995 provides the grounds on which, and the time and manner in which, individual objections and appeals to the rate record may be instituted. An objection to the rate record shall be made in writing to the City of Fremantle within 42 days of the date of issue of the rates notice.
Valuations
The Valuation of Land Act 1978 (amended) sets out the manner in which objections and appeals may be instituted regarding valuations.
An objection against the valuation must be made in writing and received by Landgate Valuation Services, PO Box 7201, Cloisters Square, Perth WA 6850 within 60 days of the date of issue of a rate notice. Landgate Valuation Services may be contacted on 08 9429 8549 or 08 9429 8542 to discuss a valuation or the appeal process.
Note: the lodgment of an objection or appeal does not alleviate a property owner’s responsibility or liability to pay all rates, levies and service charges owed, by the due date. Where applicable any overpayment will be refunded should a revaluation result in a reduction of rates, levies or service charges levied.
Supplementary/interim rates
The City may be required to issue supplementary/interim rates during the course of a financial year for various reasons, some of which are the:
- completion of a new building or structure
- alteration of a new or existing building or structure
- addition to a building or structure
- demolition of an existing building or structurevariation to land due to either amalgamation and or subdivision/strata titling
- an error in valuation or rating of a property or
- subsequent revaluation of the property.
In accordance with s.6.39 of the Local Government Act 1995, the City may amend the rate record for the current year, and for the five years proceeding the current year.
Specified area rates
- Security Service – a safety and security strategy for a specified area of the Fremantle CBD that is bounded by Parry Street, South Terrace, Suffolk Street, Fishing Boat Harbour (west of Mews Road) and along the coast to Bathers Beach, Fleet Street, Phillimore Street and Elder Place.
- Underground power Chalmers/Knutsford Streets – to fund costs associated with provision of underground power to properties in Chalmers and Knutsford Streets, Fremantle including interest on borrowings used to finance the project.
- Leighton precinct maintenance – to fund the above normal costs associated with maintaining the higher standard of the landscaping of the Leighton residential area.
Service charges
Local governments may set service charges for prescribed services and in the 2006–07 financial year, the City levied service charges to fund the costs for provision of underground power to properties in the underground power East area.