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Frequently Asked Questions - Rates Review Information Sessions
- Mulgrave Community Centre - 10 August
- Monash Civic Centre - 12 August
- Oakleigh Seminar & Training Centre - 13 August
- Mt Waverley Community Centre - 17 August
- Monash Civic Centre - 20 August (commercial and industrial ratepayers)
- Oakleigh Seminar & Training Centre - 24 August (commercial and industrial ratepayers)
Mulgrave Community Centre - 10 August
Proposed Pension Rebate Options
Q: $50/$100 - If implemented, will it be retained?
A: Council is considering the provision of a Council funded eligible pensioner rebate of either $50 or $100. Should Council introduce the rebate the amount would be considered annually each year through the Budget process.
Q: Pensioner Rebate - $50 or $100 - benefits and disbenefits to the wider community?
A: There will be specific benefits to the eligible pensioners who will receive the Council subsidy if introduced. The whole community will be required to fund any subsidy approved by the Council.
Property Development/Property Improvement
Q: What's the incentive to private property development/improvement under CIV options?
A: Under CIV property improvements and subdivisions will enhance the improved value of the property. It is not expected that this will affect the overall community desire to improve their property and enhance their asset.
Q: How does Council know the 'real' value of property?
A: Valuations are calculated by Council's Valuer, which is provided under contract to the Council and approved by the Valuer General before adopted by the Council for rating purposes.
Commercial/Industrial property and Differentials
Q: Why shift the Rate burden further to commercial/ industrial properties with differentials?
A: Under Option 3 Differential rates is the means by which Council may achieve various objectives by applying a 150% differential on Commercial/Industrial properties.
Q: How will vacant land be valued under CIV and can development be encouraged?
A: Under Capital Improved Value a vacant land allotment will be valued in the same manner in which it is valued currently and carrying less value than an improved property. Opportunities are available to Council to introduce a differential rate on vacant land to promote development, although this has not been considered in the range of options currently being consulted on.
Q: Will the 150% CIV differential subsidise residential properties?
A: The proposed differential rate of 150% for Commercial/Industrial properties (option 3) will subsidise residential properties.
Q: Residential properties win now but will that change in the future?
A: Large numbers of residential property owners are likely to be better off through a change to CIV. Future Council's will determined the rates required for services and infrastructure maintenance and renewal. However the basis for any increases will be deliberated as part of future budget processes, which also includes the ability for the community to make a submission or objection.
Q: What will be the likely impact on Commercial/Industrial in real terms?
A: The impact on commercial and industrial properties will vary dependent on the value of property improvements and apportionment overall of the rates for this category. Information is available to individual ratepayers based on the current valuations. However based on current comparisons with neighbouring municipalities Rates in Monash will remain competitive under CIV.
Social Equity
Q: The proposal to move to a more 'equitable' distribution of rates is supported, but concern is expressed that actual rateable values will rise at a much greater rate than on SV only.
A: The options for Council to change to CIV as its basis for rates changes is to enable a more equitable distribution of the rate burden across the City. The basis for rating does not influence the property value, but rather factors including property development and market interest.
Q: Will any negative impact on individual assessments by the change prompt Council to reduce it's spending?
A: Council will not receive any more income, as a direct result of changing from SV to CIV. Additional revenue will be generated by supplementary rates where property improvements or subdivision occurs as currently occurs on SV. Council's overall spending is governed by the budget process annually. Council is very mindful of the impact rates charges has on the community and determines its budget to meet community need, services and infrastructure maintenance in a financially responsible manner.
Q: What does the term ' increased wealth' in the community mean?
A: Increased wealth is defined by independent sources - The Australian Bureau of Statistics produces SEIFA data.
Q: What impact will any increased level of public (affordable) housing have on rates? Does public housing pay rates currently in Monash?
A: Public housing in Monash pays rates and contributes to the cost of service provision. Affordable housing initiatives if developed in Monash will also be required to pay rates.
Governance
Q: Council should be more transparent in its decision making processes
A: Council's commitment to community consultation and engagement in the Rating Strategy Review is part of its commitment to transparency in decision making. The process currently underway on the Rating Strategy is consistent with its community consultation framework.
Q: Concern regarding increases in Councillor Allowances was expressed and a request that the Mayor address the public more often on important issues in the community.
A: The Mayor is available to talk to community groups about important issues. The Councillor Allowances were addressed as part of the budget consultation process and ratepayers were provided with the opportunity to make comment/submissions.
Valuations
Q: Is the current Valuation process for SV the same as that required for house and land valuations (CIV)?
A: The Valuations process already conducted by Council requires the calculation of all valuation types SV, CIV and NAV. Therefore the change over to options 2/3 would continue to be based on current data collection methods.
Q: Is there an independent review of Valuations?
A: Valuations are calculated by independent contractors engaged by Council and submitted to the Valuer General for approval before being used for rating purposes
Q: Will a change the basis for rating create a significant increase in the values of property?
A: There will not be an increase in property values as a result of a change in the basis for rating properties. The value of property is affected by what happens in the market place and improvements made to properties.
Q: Will the rate of increase in property value be greater in properties under CIV than on SV alone?
A: The rate of increased property values is not determined by SV or CIV but by the market place.
Q: How will last year's expensive increase in rates for Mt Waverley properties compare with a change to CIV?
A: The change in Mount Waverley's valuations last year was driven by strong developer interest and high property prices being achieved for the sale of property. A change to CIV will not impact on property values.
Q: What is meant by high value when describing values of properties?
A: "High value" properties are those properties with either a larger house, new development and/or a significant parcel of land.
Q: How often are Valuations done?
A: Every two years as required under the Valuation of Land Act
Units
Q: If units are subsided by other residential property under SV then, CIV is fairer system
A: Under CIV units will make a higher contribution to the payment of rates, through a change in the apportionment of the rates across the city.
Q: What will be the impact of CIV on the value of units and prices for Retirement Village units?
A: The valuations made by Council and any proposed change to the basis for charging rates will not impact on the market value of private units and Retirement Village units.
Other
Q: Projected increase in population in Monash will increase the cost to Council of service delivery. There are issues of sustainability for Council to consider.
A: Council acknowledges the increasing demand for service delivery, which forms part of the strategic planning process including social, financial and environmental considerations.
Q: How will roads and services cope with increased population?
A: Council has developed asset management plans to assist in planning for increased use of all asset categories to cope with current and future use.
Updated: 28 August 2009
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