Peninsula rates hike expected

Peninsula ratepayers may find their rates will increase this year by more than the "pegged" increase of 1.8 per cent, despite a "rates freeze" associated with the council merger.

According to council's new chief financial officer, Mr Stephen Naven, ratepayers on the Peninsula may experience rate increases greater than 1.8 per cent because the NSW Valuer-General revalued unimproved land in the Gosford LGA at the beginning of 2016.

The new land values were based on assessments done in June 2015, which was at the height of the Sydney real estate boom.

The council's new chief financial officer, Mr Stephen Naven, said a newsletter is being sent to all rate payers, with their 2016-17 rates notice, to explain how the new year's rates are to be levied.

He said the council has been analysing which parts of the former Gosford local government area, including the Peninsula, may experience "bill shock" when their rates notices arrive for the new financial year.

Residential rate payers in the former Gosford Council area will find the new council has increased rates across the board by 1.8 per cent, which is the NSW Independent Pricing and Regulatory Tribunal rate peg for the year.

Hence, the new Central Coast Council is able to apply a 1.8 per cent increase across the whole rateable area, but individual rates are based on the value of each ratepayer's landholding.

If the NSW Valuer General determined that a particular rate payer's land had increased in value between 2012 and 2015, their rates will be calculated on that higher value and their rates will go up accordingly.

According to the Central Coast Council's 2016-17 operational plan, those values will be used in the 2016-17, 2017-18 and 2018-19 rating years.

The situation has been further complicated by statements made by the NSW Government in the lead-up to the merger of Gosford Council with Wyong that there would be a four-year rate freeze for merged councils.

The state government has recently softened its language to refer to that commitment as a "rates path freeze".

Mr Naven said information being sent out with 2016-17 rates notices "makes it very clear what the State Government's definition of a rates path freeze is".

The new council's understanding of "rates path freeze" is that the way in which former councils calculated their rates will not change for four years.

Rates will still increase during that time period.

"We are doing analysis now to understand who will get bill shock," Mr Naven said.

"The 1.8 per cent is over the whole rate take but it is all relative to other people's increases or decreases in land value," he said.

According to the new council's operational plan, residential rates on the Peninsula will calculated at land value multiplied by 0.306962 cents in the dollar with a minimum amount of $506.

The Central Coast Council's operational plan did not include tables of rates payable for different land values in the former Gosford LGA, although such tables were provided for the Wyong LGA.

Based on the ordinary business rate of 0.306962 cents in the dollar, residential rates on land valued at $160,000 would be $491 for the year.

Rates payable on land worth $500,000 would be $1535 for the 12 months.

The Peninsula's residential rate payers also pay a special water safety levy of $0.011571 that was introduced in 2002-03 for 15 years to conduct major repairs and refurbishment of local surf life saving clubs.

A domestic waste base charge of $64.50 is also applied to each parcel of residential land.

Water and sewage charges will be in addition to this.

Operational plan, 2016-17

Central Coast Council

Reporter: Jackie Pearson