oversight system June 2018 Legislative approach Enabling - - PowerPoint PPT Presentation

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oversight system June 2018 Legislative approach Enabling - - PowerPoint PPT Presentation

Feb 19, 2023 349 likes •487 views

A South Australian rate oversight system June 2018 Legislative approach Enabling legislation in LG Act Establish independent regulator Ensure flexibility and responsiveness June 2018 A South Australian Rate Capping System Objects

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SLIDE 1

A South Australian rate

  • versight system

June 2018

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SLIDE 2

Legislative approach

  • Enabling legislation in LG Act
  • Establish independent regulator
  • Ensure flexibility and responsiveness

June 2018

A South Australian Rate Capping System

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SLIDE 3

Objects of the Bill

Establish a ‘rate oversight’ system that will:

  • 1. Ensure that rates are subject to appropriate
  • versight
  • 2. Ensure that councils have the financial capacity

to perform their duties and functions

June 2018

A South Australian Rate Capping System

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SLIDE 4

Rate oversight - key elements

  • 1. The rate cap
  • 2. Variation process
  • 3. Monitoring and reporting

June 2018

A South Australian Rate Capping System

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SLIDE 5
  • 1. Setting the rate cap
  • ESCOSA will set the cap – by 31 December
  • It may apply to:

– All councils – A class of councils – A single council

  • It will apply to general rates

June 2018

A South Australian Rate Capping System

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SLIDE 6

Calculating the rate cap

  • Two choices

– capping total general rate revenue OR – capping a nominal individual rate

  • How to account for growth?

June 2018

A South Australian Rate Capping System

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SLIDE 7

Calculating the rate cap

  • Proposal to cap the ‘base standard rate’ – BSR
  • BSR = total general rate revenue ÷ number of

rateable properties – on 30 June

  • Rate cap then applies to BSR to create ‘capped

standard rate’ – CSR – on 1 July

June 2018

A South Australian Rate Capping System

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SLIDE 8

Calculating the rate cap

  • BSR also calculates total annualised rate

revenue

  • Councils can capture all new rateable

properties each year on an annualised basis

June 2018

A South Australian Rate Capping System

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SLIDE 9
  • 2. Rate cap variations
  • Councils may apply for a variation (increase) of

the rate cap

  • ESCOSA will receive and assess applications
  • Applications must be made by 31 March
  • Variations can be requested for up to five years

June 2018

A South Australian Rate Capping System

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SLIDE 10

Rate cap variations

Councils will need to specify:

  • The amount of increase wanted and the reasons why
  • The community engagement process undertaken
  • The likely impact of the increase on ratepayers and their capacity and

willingness to pay it

  • Consideration that’s been given to re-prioritising and/or alternative

funding mechanisms

  • How the varied rate cap represents value for money for ratepayers and

promotes the efficient use of council resources

  • How the proposal is consistent with the council’s long term financial plan

and asset management plan

June 2018

A South Australian Rate Capping System

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SLIDE 11
  • 3. Monitoring and compliance
  • ESCOSA will report annually on compliance to

the Minister

  • ESCOSA will also report every two years on
  • utcomes of the system

June 2018

A South Australian Rate Capping System

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SLIDE 12

Questions?

June 2018

A South Australian Rate Capping System