Golden Plains Revenue Review - Options Paper - 27 February 2013 Prepared for Golden Plains Shire Council
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Golden Plains Revenue Review – Options Paper 27 February 2013 Prepared for Golden Plains Shire Council
Golden Plains Revenue Review – Options Paper
Prepared for Golden Plains Shire Council
Quality Assurance
Report Stage Author Date Review Date
Lisa Saraceni,
Paul Beatty, David
Research Paper Estella Zhang, 17 January, 2013 23 January, 2013
Brown
Rosalie Loong
Draft Options Paul Beatty, Paul Beatty, David
1 February, 2013 1 February, 2013
Paper Rosalie Loong Brown
Final Report Rosalie Loong 26 February, 2013 David Brown 26 February, 2013
Project Manager
Paul Beatty
Manager, Planning (VIC)
27 February 2013
This document is for discussion purposes only unless signed and dated by the persons identified.
Authors
The authors of this report were:
Role Name
Project Manager(s) Paul Beatty
Project Contact(s) Paul Beatty, David Brown
© MacroPlan Australia Pty Ltd All Rights Reserved. No part of this document may be reproduced,
transmitted, stored in a retrieval system, or translated into any language in any form by any means
without the written permission of MacroPlan Australia Pty Ltd. All Rights Reserved. All methods,
processes, commercial proposals and other contents described in this document are the confidential
intellectual property of MacroPlan Australia Pty Ltd and may not be used or disclosed to any party
without the written permission of MacroPlan Australia Pty Ltd.Golden Plains Revenue Review – Options Paper Prepared for Golden Plains Shire Council Contents 1 Introduction ............................................................................................................... 1 1.1 Study Objectives .................................................................................................................. 1 1.2 Report Structure .................................................................................................................. 2 1.3 Disclaimer ............................................................................................................................ 2 2 Golden Plains Shire Council - Regional Context ............................................................ 3 2.1 Location ............................................................................................................................... 3 3 Policy Review ............................................................................................................. 5 3.1 Cultural and Recreational Lands Act 1963........................................................................... 5 3.2 Council Plan 2012-2016 ....................................................................................................... 6 3.3 Draft Council Plan 2013-2017 .............................................................................................. 6 3.4 Annual Report 2011-12 ....................................................................................................... 7 3.5 Financial Report 2011-12..................................................................................................... 8 3.6 Golden Plains Shire Council Budget 2012-13 ...................................................................... 9 3.7 Golden Plains Shire Council - Strategic Resource Plan 2010-2015 .................................... 11 3.8 Golden Plains Planning Scheme – Local Planning Policy Framework ................................ 12 3.9 Central Highlands Regional Growth Plan (Draft) ............................................................... 15 3.10 G21 Regional Growth Plan................................................................................................. 15 3.11 Implications for Ratings Strategy....................................................................................... 16 4 Socio-Demographic Trends ....................................................................................... 18 4.1 ABS Census 2011 Overview ............................................................................................... 18 4.2 Historical Population Growth ............................................................................................ 20 4.3 Household indicators ......................................................................................................... 22 4.4 Population Outlook............................................................................................................ 22 4.5 Income and Occupation..................................................................................................... 23 4.6 Industry Structure.............................................................................................................. 24 4.7 Residential Property Market ............................................................................................. 29 4.8 Victorian Economic Outlook .............................................................................................. 32 5 Review of Golden Plains Shire Council Rating Strategy 2009 ...................................... 33 5.1 Overview of Rating ............................................................................................................ 33 5.2 Current Rating Strategy ..................................................................................................... 33 5.2.1 Differential Rates ............................................................................................................... 34 5.2.2 Rating Revenue .................................................................................................................. 35 5.3 Implications for Rating Strategy ........................................................................................ 39 6 Rating Strategy - Benchmark Assessment .................................................................. 40 6.1 Rating Systems Observed in Other Regional Councils ....................................................... 40
Golden Plains Revenue Review – Options Paper Prepared for Golden Plains Shire Council 6.1.1 City of Ballarat ................................................................................................................... 40 6.1.2 City of Greater Geelong ..................................................................................................... 43 6.1.3 Colac Otway Shire Council ................................................................................................. 45 6.1.4 Corangamite Shire Council ................................................................................................ 46 6.1.5 Glenelg Shire Council ......................................................................................................... 47 6.1.6 Hepburn Shire Council ....................................................................................................... 50 6.1.7 Moorabool Shire Council ................................................................................................... 51 6.1.8 Pyrenees Shire Council ...................................................................................................... 53 6.1.9 Surf Coast Shire Council..................................................................................................... 55 6.2 Benchmarks Summary and Comparison ........................................................................... 56 6.2.1 Rates .................................................................................................................................. 56 6.2.2 Municipal Charge ............................................................................................................... 59 6.3 Implications for Rating Strategy ........................................................................................ 60 7 Options .................................................................................................................... 62 7.1 Municipal Charge ............................................................................................................... 62 7.2 Tiered Farming Differential ............................................................................................... 66 8 Appendix A - Rating Frameworks .............................................................................. 70 8.1 Frameworks in Victoria ...................................................................................................... 70 8.2 Rating valuation methodologies ........................................................................................ 71 9 Appendix B - Principles of Rating .............................................................................. 72 9.1 Rates policy ........................................................................................................................ 73 9.2 Paying council rates ........................................................................................................... 74
Golden Plains Revenue Review – Options Paper
Prepared for Golden Plains Shire Council
List of Figures
Figure 1. Golden Plains Local Government Area Context Map .......................................................... 3
Figure 2. Surplus from operational activities ..................................................................................... 7
Figure 3. Primary Revenue Generators ............................................................................................ 10
Figure 4. Golden Plains Shire Council Revenue Indicators ............................................................... 10
Figure 5. G21 Regional Growth Plan - Key Linkages Map................................................................. 16
Figure 6. Historical Population Growth ............................................................................................ 20
Figure 7. Population by Age, Golden Plains LGA and Regional Victoria ........................................... 21
Figure 8. Projected Population Growth, Golden Plains (S): 2011-2031 ........................................... 23
Figure 9. Turnover Size Range (June 2011) ...................................................................................... 29
Figure 10. Dwelling Approvals, Golden Plains (S) LGA, 2002-2012 .................................................... 30
Figure 11. Volume and Price of House Sales, Golden Plans (S) LGA, 2009-2012 Q3 .......................... 31
Figure 12. Volume of House Sales by SA2, Golden Plans (S) LGA, 2009-2012 Q3 .............................. 31
Figure 13. Median Price of House Sales by SA2, Golden Plans (S) LGA, 2009-2012 Q3 ..................... 32
Figure 14. Rates and Charges Revenue Breakdown by Category, Golden Plains Shire , 2012-13...... 37
Figure 15. Rates and Charges Revenue Breakdown by Property Type, Golden Plains Shire, 2012-13 ..
................................................................................................................................... 37
Figure 16. Rates Income and Total Income, Golden Plains Shire, 2008 - 2013 .................................. 38
Figure 17. Rate Revenue Growth Projection ...................................................................................... 39
Figure 18. Rate Revenue Composition, City of Ballarat, 2011-12 ...................................................... 43
Figure 19. Rate Revenue Composition, City of Greater Geelong, 2011-12 ........................................ 45
Figure 20. Rate Revenue Composition, Colac Otway Shire, 2011-12 ................................................. 46
Figure 21. Rate Revenue Composition, Corangamite Shire, 2011-12 ................................................ 47
Figure 22. Rate Revenue Composition, Glenelg Shire, 2011-12 ......................................................... 49
Figure 23. Rate Revenue Composition, Hepburn Shire, 2011-12 ....................................................... 51
Figure 24. Rate Revenue Composition, Moorabool Shire, 2011-12 ................................................... 53
Figure 25. Rate Revenue Composition, Pyrenees Shire, 2011-12 ...................................................... 54
Figure 26. Rate Revenue Composition, Surf Coast Shire, 2011-12..................................................... 56
Figure 27. Benchmark Comparisons – Municipal Charge, 2011-12 ................................................... 59
List of Tables
Table 1. Golden Plains Shire Council Standard Income Statement ................................................... 8
Table 2. Golden Plains Shire Council land valuations........................................................................ 8
Table 3. Golden Plains Shire Council other income revenue ............................................................ 9
Table 4. Census 2011 Socio Demographic Summary, Golden Plains (S) and Regional Victoria ...... 19
Table 5. Population by Age 2010..................................................................................................... 20
Table 6. Households summary, Golden Plains (S) and Regional Victoria 2011 .............................. 22
Table 7. Individual Income 2001-11, Golden Plains (S) and Victoria .............................................. 23Golden Plains Revenue Review – Options Paper
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Table 8. Wage and Salary Earners by Occupation, Golden Plains (S) 2011 .................................... 24
Table 9. Businesses by Industry by Employee Count, Golden Plains (S), June 2011 ....................... 25
Table 10. Count of Agriculture, Forestry and Fishing businesses by Number of Employees, Golden
Plains (S), June 2011 .......................................................................................................... 25
Table 11. Count of Agriculture, Forestry and Fishing by Turnover, Golden Plains LGA, June 2011.. 26
Table 12. Count of Construction Businesses by Employment Size Range, Golden Plains LGA, June
2011 ................................................................................................................................... 26
Table 13. Count of Construction Businesses by Turnover Size Range, Golden Plains LGA, June 2011
................................................................................................................................... 27
Table 14. Count of Professional Services by Employment Size Range, Golden Plains LGA, June
2011 ................................................................................................................................... 27
Table 15. Count of Professional Services by Turnover Size Range, Golden Plains LGA, June 2011 .. 27
Table 16. Count of Transport, Postal and Warehousing Businesses by Employment Size Range,
Golden Plains LGA, June 2011 ........................................................................................... 28
Table 17. Count of Transport, Postal and Warehousing Businesses by Turnover Size Range, Golden
Plains LGA, June 2011 ........................................................................................................ 28
Table 18. Rating Categories, Golden Plains Shire Council, FY 2011-12 and 2012-13........................ 34
Table 19. Rates and Charges Summary, Golden Plains Shire, FY 2011-12 and 2012-13 ................... 36
Table 20. Rate in the Dollar, City of Ballarat, 2011-12 ...................................................................... 41
Table 21. Rate in the Dollar, City of Greater Geelong, 2011-12........................................................ 44
Table 22. Rate in the Dollar, Colac Otway Shire, 2011-12 ................................................................ 45
Table 23. Rate in the Dollar, Corangamite Shire, 2011-12 ................................................................ 47
Table 24. Rate in the Dollar, Glenelg Shire, 2011-12 ........................................................................ 48
Table 25. Rate in the Dollar, Hepburn Shire, 2011-12 ...................................................................... 50
Table 26. Rate in the Dollar, Moorabool Shire, 2011-12 .................................................................. 52
Table 27. Rate in the Dollar, Pyrenees Shire, 2011-12 ...................................................................... 54
Table 28. Rate in the Dollar, Surf Coast Shire, 2011-12 .................................................................... 55
Table 29. Benchmark Comparisons – Rate in the Dollar by Category, 2011-12 ............................... 57
Table 30. Benchmark Comparisons – Rate Differential by Category, 2011-12 ................................. 57
Table 31. Benchmark Comparisons – Ave Amount Raised per Assessment, 2011-12 ...................... 58
Table 32. Benchmark Comparisons – Rates Revenue Composition by Category, 2011-12 .............. 58
Table 33. Rates and charges framework ........................................................................................... 70Golden Plains Revenue Review – Options Paper
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1 Introduction
1.1 Study Objectives
MacroPlan Dimasi was engaged by Golden Plains Shire Council to undertake a review of its
rating structure.
Council's overall revenue requirement depends on its choices on the level and quality of
services that it decides to provide. This determines its overall expenditure to be recovered
through various revenue sources.
Rates are one source of revenue for Council and the share of overall revenue recouped through
rates is dependent on how much Council can recover from other sources such as grants,
prescribed and discretionary fees, fines and charges, sales of assets, interest earned and
contributions from developers.
The key objectives of this study are to:
Make recommendations in relation to Council’s rating system such that rates revenue
provides financial sustainability for the Council and achieves an equitable distribution
across residents;
Make recommendations in relation implementation of levies associated with the Cultural
and Recreational Lands Act 1963;
Prepare guidelines for implementation of the Ratings Strategy.
This study aims to assess Council’s rating system in context of:
Council’s plans and policies (e.g. existing Rating Strategy, Council Plan; Economic
Development Strategy etc.);
Key issues associated with rating structure as through consultation ;
Council’s long term financial sustainability;
Achieving an equitable distribution of rates burden across community;
Rating systems and methodologies adopted by other local government; and
Local and broader economic and demographic trends.
In order to meet these objectives, the following overarching guiding principles need to be
considered. Specifically, rate revenue should be used to:
Ensure that resources are used efficiently and effectively, and that services are provided in
accordance with the Local Government Best Value Principles to best meet the needs of the
local community;
Improve the overall quality of life of people in the local community;
Promote appropriate business and employment opportunities; and
Ensure that services and facilities provided by the Council are accessible and equitable.
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The report then provides a number of options for consideration by Council relating to Council's
Rating Strategy, and other potential sources of revenue. The final stage of the project will
further develop these options in consultation with Council to provide formal recommendations.
1.2 Report Structure
This report is structured as follows:
Chapter 2 provides an overview of the Golden Plains regional context;
Chapter 3 provides a review of key policy documents including the Annual Report, Council
Budget, Financial Plan, Golden Plains Planning Scheme, and various regional strategies;
Chapter 4 illustrates the socio-economic and property market trends in Golden Plains, with
comparisons to Victoria and Regional Victoria;
Chapter 5 reviews the existing rating system, and the historical trends in revenue collection
in Golden Plains;
Chapter 6 provides examples of rating approaches adopted in other selected Victorian local
government areas;
Chapter 7 outlines a number of options that have arisen from the study for Council to
consider; and
The appendices contain the ratings frameworks and the general principles of rating.
1.3 Disclaimer
This study has been prepared by MacroPlan Dimasi Pty Ltd and is intended for the purpose
described in this report and not for any other purpose. The contents of this paper should not
be reproduced without the expressed written permission of MacroPlan Dimasi Pty Ltd.
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2 Golden Plains Shire Council - Regional
Context
2.1 Location
Golden Plains Shire is located approximately 100km south-west of the Melbourne CBD. Golden
Plains is bounded by the City of Ballarat and the Moorabool Shire in the north, the City of
Greater Geelong in the east, the Surf Coast and Colac-Otway Shires in the south and
Corangamite and Pyrenees Shires in the west.
Golden Plains is predominantly rural area with several small townships. The Shire encompasses
a total land area of 2,705 square kilometres. The largest town is Bannockburn.
Figure 1. Golden Plains Local Government Area Context Map
Source: MacroPlan Dimasi, 2013
Golden Plain Shire’s estimated resident population is 18,917 persons. Golden Plains is one of
the fastest growing municipalities in Victoria, with population growth of around 2.28% per
annum over the past 10 years.
Rural land is used mainly for grazing and cropping, gold mining and viticulture. While the Shire
has a strong tradition of wool and grain growing, intensive animal farming is increasing. In
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addition, an increase in mixed farming systems as a result of climate change is resulting in a
steady transition to increased grain production.
The spatial distribution of population has a number of implications on infrastructure and
community facilities which Council must maintain.
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3 Policy Review
This section provides a review of the following documents:
Cultural and Recreational Lands Act 1963;
Council Plan 2012-2016;
Draft Council Plan 2013-2017;
Annual Report 2011-12;
Financial Report 2011-12;
Golden Plains Shire Budget 2012-13;
Golden Plains Shire Council - Strategic Resource Plan 2010-2015 (SRP);
Golden Plains Planning Scheme – Local planning policy framework;
Central Highlands Regional Growth Plan;
G21 Regional Growth Plan.
The documents outline Council's key objectives as well as the main issues impacting the City.
3.1 Cultural and Recreational Lands Act 1963
The Cultural and Recreational Lands Act 1963 provides orders of compulsory acquisition and
declaration of recreational lands throughout Victoria.
Under Section 2, the Act specifically defines recreational and cultural land which includes:
lands which are-
Vested in or occupied by any body corporate or unincorporate which exists for the purpose of
providing or promoting cultural or sporting recreational or similar facilities or objectives and
which applies its profits in promoting its objects.
used for out-door sporting recreational or cultural purposes or similar out-door activities; or
The Act gives Council the ability to charge a specific levy. As stated under Clause S.4 (1) rates:
“There shall be paid to the municipal council as rates in each year such amount as the
municipal council thinks reasonable having regard to the services provided by the municipal
council in relation to such lands and having regard to the benefit to the community derived
from such recreational lands.”
In determining the rating strategy this clause is of significance as Council must give due regard
to the clauses of the Act when considering the percentage of general rates to be allocated
towards recreational land use.
The application of a cultural and recreation land levy differs between Councils and is typically at
a discount to general residential rates.
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3.2 Council Plan 2012-2016
The Golden Plains Shire Council Plan 2012-2016 (updated 2012) outlines key strategic
objectives and actions to be implemented throughout the region. The actions are broken down
into nine categories as outlined within the Council Plan
These include;
Citizen and customer service;
Civic leadership;
Economic development;
Environment and land use planning;
Financial management;
Human support services;
Recreation and community development;
Roads and streets infrastructure; and
Waste management.
Contained under each of these categories are actions to be implemented and subsequent
results to be achieved for the region. There are a number of actions requiring further
implementation as identified within the plan. Sourcing the necessary funding from grants or
internally with Council finances is a key consideration upon analysis of this revenue rating
review.
3.3 Draft Council Plan 2013-2017
The Council Plan for 2013 – 2017 is currently being drafted. In order to further support the
delivery of the Plan, Council intends to undertake lobbying of State and Federal Government
representatives to advocate for further funds and support.
Council has however achieved funding for local infrastructure from the State Government Local
Government Infrastructure Programme and from the Federal Government’s Roads to Recovery
Programme.
As indicated under the Plan there are currently 10,044 rateable properties contained within the
Shire boundary. Council has an operating income of $39.8 million with rate revenue of $12.3
million as documented over the 2011-12 financial year.
The intention of reviewing and implementing the rating (revenue) strategy is highlighted under
the Financial Management section of the Plan. This was similarly identified under the previous
adopted Council Plan and is a subsequent focus of the Shire over the coming financial year.
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3.4 Annual Report 2011-12
The Golden Plains Council Annual Report 2011-12 details Council’s key financial performance
indicators. The surplus from operational activities for 2011-12 totalled $14.188 million. As
indicated in the below graph this is significantly greater than previous years due to the timing
of government grants and the recognition of non-cash assets (e.g. found assets).
Figure 2. Surplus from operational activities
Source: Golden Plains Annual Report 2011-12
Furthermore, the capital expenditure for 2011-12 was $11.1 million. Council’s total capital
expenditure over the last three years is documented as $34.76 million. This is a result of
funding, government grants and discretionary retained earnings.
In addition, as indicated within the Council Plan, Councils total borrowings have decreased by
$1.16 million from the previous year to $5.44 million. The level of capital expenditure and
borrowings are predicted to remain steady over the next few years.
Working capital (being the amount by which current assets exceed current liabilities) had a
balance of $2.33 million at 30 June 2012. This is compared to the budgeted $869 000 resulting
from a larger than intended cash balance being a key consideration of this rating strategy.
Council provided funding for 44 community grants over the documented financial year totalling
$127 921. Further to this in 2011-12 Council received external grant funding for community
based projects totalling $3.8 million.
In addition, numerous projects have received Council funding including a significant investment
of $5.2 million for a new library and cultural centre. However, Council may look to further
federal and state funding as a method of obtaining the necessary finances required to
implement identified projects under the report.
The standard income statement for the year ended 30 June 2012 is shown below:
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Table 1. Golden Plains Shire Council Standard Income Statement
Source: Golden Plains Annual Report 2011-12
As shown the total revenue for the Shire for this financial year was $39,799,421, this saw a
difference of $13,326,230 between the budget and actual revenue.
The findings of the annual report demonstrates Council remains in a strong financial position.
However, improved rating revenue allocations will be suggested through analysis of the
revenue review.
3.5 Financial Report 2011-12
The financial report is a general purpose financial report that consists of a comprehensive
income statement, balance sheet, statement of charges in equity and cash flow statements. All
funds through which Council controls resources to carry on its functions are included in the
financial report.
The following valuations are used in the calculation of adopted rates at the commencement of
the rating year:
Residential;
Farm ;
Non-farm Vacant Land; and
Business.
As indicated below a total Capital Improved Value of $3,029,704,360 was obtained in 2012
from the land valuation rates.
Table 2. Golden Plains Shire Council land valuations
Source: Golden Plains Financial Report 2011-12
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In addition a total rates revenue of $12,288,357 was collected in 2012.
Of importance to this rating strategy is the revenue achieved through other income. A total of
$3,940,511 million of other income was collected in 2011-12 as shown in the table below.
Table 3. Golden Plains Shire Council other income revenue
Source: Golden Plains Financial Report 2011-12
It is also noted a total of $232,978 of other expenses have been recorded for the documented
financial year. These incomes and expenses are of key significance upon consideration of the
revenue and ratings recommendations provided in the following chapters.
3.6 Golden Plains Shire Council Budget 2012-13
As outlined within the 2012-13 Council budget the Golden Plains Shire Council faces a number
of cost pressures in the current financial year. Council’s total increase in its rates and charges
has been limited to 7.83%. Despite steady rate increases, of 71 assessed Victorian local
governments, Council’s average rates and charges per assessment was rated the 22nd lowest in
Victoria.
The need for a sustained annual rate increase was identified as part of Council’s first Strategic
Resource Plan (Finance 2005). Council intended to decrease its reliance on grant funding, as
this was considered unsustainable in the long term.
Below indicates the current primary revenue generators for Council.
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Figure 3. Primary Revenue Generators
Source: Golden Plains Shire Budget 2012/13
As indicated, after rates and charges Council receives significant revenue from capital and one-
off grants as well as fees and charges.
Council’s total revenue from rates and charges has steadily increased over the last few years
with a growth of 4.35% from the previous year. Although the revenue percentage from grants
has slightly increased from the previous budget there has been a general decline in grants
revenue from previous years.
Figure 4. Golden Plains Shire Council Revenue Indicators
Source: Golden Plains Shire Budget 2012-13
With total operating and capital budget of $32 million a broad range of services, programs and
infrastructure projects are anticipated to be delivered.
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These programs include:
$8.2m allocated to the construction and maintenance of road and street infrastructure;
$7.5m to support and develop recreation and community spaces and groups;
$5.9m to human support services, including children, aged, disability and maternity support;
$3.3m to managing Council’s environmental and land use planning responsibilities.
In 2012-13, Council has kept the total average increase per assessment to 7.83%.
This comprises:
A 9.95% increase in revenue from general rates (inclusive of the impact of the revaluation);
No increase in the municipal charge;
An increase in the annual garbage charge of 9.09%; and
A decrease in the State Landfill Levy of 14% (Council is now disposing of waste at the Naroghid
landfill, which is classified as a rural landfill and attracts a lesser state government levy).
As identified in the budget, rates and charges for the previous financial year have increased by
$1.7million. Rates and charges account for 54.99% of operating revenue (47.80% of total
revenue).
Council’s revenue from rates and charges is budgeted to be 47.8%; this is forecast to reach
approximately 55% in 2014-15.
In setting differing land use rate charges, the key findings and trends of the previous Council
budget will be considered.
3.7 Golden Plains Shire Council - Strategic Resource Plan
2010-2015
The Golden Plains Shire Strategic Resource Plan (SRP) describe the resources, both financial and
nonfinancial, required over the 5-year period 2010-11 to 2014-15 to achieve the strategic
objectives and strategies proposed in the Council Plan.
The major assumptions made in reference to rate revenue under the plan include;
Rate Revenue
Supplementary growth estimated at 3.0% per annum;
Interest rate on outstanding rates (set by the State Government) assumed to remain constant;
The level of outstanding rates is expected to remain constant.
Further to this the following grants have been included as part of the five year plan;
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General Recurrent Grants - VGC – assume an increase of 5.0% pa;
The majority of grants are assumed to increase in line with CPI;
The Community Building Initiative funding to cease in March 2010;
Grants for Economic Development to be in the range of $300k - $400k pa;
Environmental Grants of $25k every two years;
Planning Grants of $25k every two years;
Country Football/Netball - $60k every two years and two grants of $20k every other year;
Grants for paths and trails of $200k pa;
Three RDV Small Towns Grants per annum totalling $200k per annum;
Timber Roads funding of $350k every two years;
Roads to recovery and roads to market will continue at current levels;
SRV minor grants of $60k every two years.
Council’s rate levels are low both in dollar terms and as a percentage of total revenue. A key
feature of the SRP is the acknowledgment that increases in rates beyond CPI will be required to
keep Council in a sound long term financial position.
It is predicted the average rates and charges per assessment is to increase from $1,319.25 in
2010-11 to $ 1,796.29 in 2014-15. A key consideration of this ratings review.
Furthermore as predicted under the SRP, rate revenue as a percentage of total revenue is
anticipated to increase from 37% in 2010-11 to 49% in 2012-2015.
These figures indicate a significant jump in rates and charges revenue over this time period and
will be factored into the rating strategy recommendations.
3.8 Golden Plains Planning Scheme – Local Planning
Policy Framework
The Golden Plains Planning Scheme contains key local land use policy objectives under Clause
20 – Local Planning Policy Framework. This section highlights the major planning policy
objectives which need to be considered in formulating a targeted ratings response.
Clause 21.02 Key Issues Affecting the Shire’s Land Use Planning and
Development
Managing Residential Growth
Council seeks to focus residential growth within the township boundaries. However there is
increasing pressure for the establishment of further residential development outside these
boundaries. This land is predominantly classified either under farm or non-farm vacant land.
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The rates for these land uses therefore require further review as the townships continue to
expand.
Council intends to manage the urban-rural interface appropriately, with a need for greater
care in managing urban development within townships. An appropriate rating classification
for these properties will therefore need to be defined upon further residential expansion
within the municipality.
Economic Growth
As identified under clause 21.02 the Shire currently relies on the strength of its agricultural
industries as its economic base. The Shire has recognised the need to support potential
industry growth while protecting land and economic values of the region.
Further to this the Council intends to sustain growth in its intensive agricultural industries. The
issue lies in protecting these industries through the appropriate application of the farm and
non-farm vacant land rating classifications.
Viable Agriculture
Agriculture is the major land use within the Shire. The industry however has been under
economic pressure in recent years with a tendency towards an increase in farm size
counteracting economic pressures. This generally occurs in areas away from population growth
with less small lot subdivisions. Given this, further examination of farm and non-farm vacant
land rates is necessary to continue to support the growth of the agricultural industry.
Clause 21.03 – Municipal vision, corporate vision and framework plans
The Council’s Corporate Plan and its vision recognise that the future of the Shire embraces
physical, social, economic, community and administrative goals. The plan includes a mission
statement, which is:
“The Golden Plains Shire will provide strong leadership, encourage sustainable development
and ensure quality of services in partnership with the community, for the continued viability of
the municipality”
The clause contains structure plans for a number of local areas within the Shire boundaries. The
plans provide a suitable framework for land use and development. The structure plans indicate
a preferred layout of residential, commercial, community and other land uses based on a ten
(10) year outlook.
The land uses as defined under these structure plans including commercial, recreation and
open space zonings.
Clause 21.04 – Objectives, strategies – implementation
There is substantial supply of residential land in all urban centres and towns in the shire.
Significant scope exists for the consolidation of sites and intensification of development in
existing towns. As indicated under the local planning framework, with moderate growth, and
considering the existing areas of vacant land, no significant new areas of land need to be
provided for residential development through zoning. Consolidation and infill development can
take place within most of the existing towns.
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There are a large proportion of existing small lots, which include old crown titles, particularly in
the north-west of the shire. Many of these lots in the north-west area have been developed for
rural residential purposes and distinct communities have developed in these areas. In addition,
the north-west and other areas of the shire have a number of townships and community areas
containing Low Density Residential zoning.
A key issue for the Shire as identified under the clause is the substantial over supply of land
zoned for urban development and its proximity to other urban markets in Ballarat and Geelong
These are all important factors impacting development patterns to be considered in setting of
the residential rates.
Clause 22.05 – Management of Rural Residential Development – North West
Area
The North-west area within the Shire contains a mix of township, rural and rural residential
land uses. As highlighted within the Clause it is important to consider the timely provision of
infrastructure and services within these areas.
It is deemed most likely that land within the City of Ballarat adjoining the north-west area,
will also be set aside for rural residential development opportunities. These identified
infrastructure needs will require further funding derived from the local rates and revenue.
Alternative state funding methods will also need to be explored.
Clause 22.06 Urban Growth Boundaries
The Council supports the maintenance of a clear distinction between urban and rural areas.
Objectives of clause 22.06 include;
To provide a high quality urban environment and encourage the consolidation of existing
township areas by maximising development opportunities within these areas.
To accommodate people within the main townships areas that have reticulated
infrastructure, such as water, future sewerage and stormwater drainage.
To maximise the use of infrastructure.
To ensure greater use of community services and facilities.
To improve service delivery to urban centres.
To establish an urban edge to all settlements based on current zonings. This edge is
designed to ensure that the direction of development is known to all residents and will
facilitate certainty for development in urban areas and agricultural uses in rural areas.
Financial implications need to be addressed for the successful implementation of the economic
objectives as stated under the Local Planning Policy Framework.
Clause 22.09 Low Density Residential Development Policy
The policy applies to low density residential land. The subdivision provision for the low
density residential zoning could allow for these areas to be subdivided into lots down to 0.4
hectares. Additional residential development in these areas would substantially increase the
overall lot yield and increase infrastructure requirements such as roads and drainage.
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Funding for such service requirements will need to be examined and reflected through rating
revenues for these low density areas.
3.9 Central Highlands Regional Growth Plan (Draft)
The Central Highlands Regional Growth Plan covers the municipalities of Moorabool Shire
Council, Hepburn Shire Council, Ballarat City Council, Pyrenees Shire Council, Ararat Rural City
Council and the northern part of Golden Plains Shire Council. Golden Plains contains 1.6% of
the Central Highlands residential population.
The Regional Growth Plan will provide land use planning responses to the strategic directions
and actions identified in the Central Highlands Regional Strategic Plan developed in June
2010. In addition, the Plan provides a regional settlement network and hierarchy. The Golden
Plains region is identified as a primary freight transport access link through to Ballarat under
the plan.
The regional growth plans will:
Identify important economic, environmental, social and cultural resources to be
preserved, maintained or developed;
Provide direction for accommodating growth and change including residential,
employment, industrial, commercial, agricultural and other rural activities; and
Show broadly which areas of land can accommodate growth and which are to be
maintained, including consideration of the infrastructure needed to support growth or
change.
Key objectives of the plan include:
Identify key regional priorities for future infrastructure planning and investment to support
growth;
Improve transport infrastructure and services;
Improve access to health and tackle inequality; and
Provide better access to education and training.
Funding constraints for projects such as those identified under the document will be
considered upon analysis of Council’s current rating strategy. The Central Highlands Regional
Growth Plan deals with strategic planning issues at a regional level and therefore is not specific
in its objectives for revenue and funding primarily within Golden Plains Shire.
3.10 G21 Regional Growth Plan
The G21 Regional Growth Plan has been drafted to accommodate the increase in population of
people living, working and visiting the Geelong and surrounding region over the next 40 years.
The southern portion of Golden Plains Shire is part of the G21 Regional Growth Plan. The
Regional Growth Plan indicates the intention to develop an efficient and equitable public
transport, road and freight network leveraged off existing infrastructure directed from Geelong
through the Golden Plains region and connecting to Ballarat.
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Figure 5. G21 Regional Growth Plan - Key Linkages Map
Golden
Plains Shire
Source: G21 Regional Growth Plan
As indicated above, Golden Plains region is anticipated to be utilised as a major transport network between Geelong
and Ballarat.
The strengths of the Golden Plains region as identified under the G21 Economic Development Strategy include,
intensive agriculture, broad acre grain farming and viticulture.
In addition, the Regional Growth Plan acknowledges the need to establish land development
incentives:
“Explore incentives for urban renewal and infill and release of land within existing identified
undeveloped growth areas for both housing and employment outcomes”.
Rates incentives are explored as a potential for preserving agricultural land at a regional level.
3.11 Implications for Ratings Strategy
The policy framework guiding development of Golden Plains Shire and the surrounding regions
points to a number of key strategic objectives which need to be considered in formulating a
targeted rating response.
In addition, The Golden Plains Council Plan sets the overarching strategic objectives for Council
for the next 5 years.
Ensure the detailed actions and subsequent funding approaches of the Council Plan are
considered;
Ensure the outcomes of the Draft Council Plan are monitored.
These are summarised as:
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Ensure the level of capital expenditure and borrowings continues to decrease in the
coming financial year;
Ensure total revenue from rates and charges continues to increase to deliver liveability
benefits for the wider community;
Ensure the total average increase per assessment remains steady at approximately 7.83%.
Recognise the significance of the agricultural, viticultural, horticultural and manufacturing
sectors to the Golden Plains economy.
Recognise that road infrastructure will play an important role in ensuring that the farming
sectors are connected inter-regionally and internationally;
Ensure that rates, charges and levies are implemented in an equitable and transparent
manner and in accordance with legislative requirements;
Support Council’s leadership in local economic opportunities and community strengthening
undertaken by Council in partnership with local business and service providers.
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4 Socio-Demographic Trends
This section provides a demographic and economic overview of the Golden Plains Local
Government Area (LGA) with the view to understanding:
Recent socio-demographic trends of the municipality, changes in capacity to pay rates and
potential impacts of demographic change on Council's future revenue;
Industry structure and trends for businesses in Golden Plains Shire;
Population outlook for the region and associated demand for housing;
Property market trends and the impact of property values.
These indicators provide important context for Council’s overall revenue review.
4.1 ABS Census 2011 Overview
The following table shows the 2011 statistics for Golden Plains LGA across key socio-
demographic variables. The key findings from this table are:
The median household income in Golden Plains LGA ($63,284 pa) is much higher than the
Non- Metro median ($49,547 pa); however the median per capita income ($27,976 pa) is
only slightly higher than the Non-Metro median ($25,690).
There is a slightly younger age structure in Golden Plains LGA compared to Non-Metro
Victoria with 38.7% of the population 0-29 years of age.
A much lower number of renters in Golden Plains LGA with 8.9% of households renting
compared to 25.2% in Non-Metro Vic. As a result there are very high levels of home
ownership with 90.5% owning or purchasing their home compared to 74% in Non-Metro
Vic.
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Table 4. Census 2011 Socio Demographic Summary, Golden Plains (S) and Regional Victoria
Socio-dem ographic profile, 2011
Non-m etro Vic
Census item Golden Plains 11 avg.
Per capita income $27,976 $25,690
Var. fro m No n-metro Vic benchmark 8.9%
Avg. household income $63,284 $49,547
Var. fro m No n-metro Vic benchmark 27.7%
Avg. household size 2.8 2.4
Age distribution (% of population)
Aged 0-14 23.0% 19.2%
Aged 15-19 7.2% 6.8%
Aged 20-29 8.4% 10.7%
Aged 30-39 12.5% 11.3%
Aged 40-49 16.7% 13.7%
Aged 50-59 14.7% 14.0%
Aged 60+ 17.5% 24.2%
Average age 36.7 40.1
Housing status (% of households)
Ow ner/purchaser 90.5% 74.0%
Renter 8.9% 25.2%
Other 0.5% 0.8%
Birthplace (% of population)
Australian born 89.1% 88.8%
Overseas born 10.9% 11.2%
Family type (% of households)
Couple w ith dep't children 53.7% 41.9%
Couple w ith non-dep't child. 8.2% 6.5%
Couple w ithout children 23.0% 25.6%
One parent w ith dep't child. 6.3% 9.8%
One parent w non-dep't child. 1.9% 3.1%
Other family 0.5% 0.8%
Lone person 6.3% 12.3%
So urce: A B S Census o f P o pulatio n & Ho using, 2011; M acro P lan Dimasi
Source: ABS Census 2011, MacroPlan Dimasi
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4.2 Historical Population Growth
In 2011 the Golden Plains LGA had an estimated residential population of 18,917 persons. The
average annual growth rate for the LGA peaked at 3.24% in 2005; it has since declined to 2.25%
in 2011.
Figure 6. Historical Population Growth
20,000 4%
18,000
16,000
3%
14,000
12,000
10,000 2%
8,000
6,000
1%
4,000
2,000
- 0%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Golden Plains (S) - (LHS) AAGR (%) - (RHS)
Source: ABS Regional Population Growth: cat. No. 3218.0 (2012)
Age Profile
The population in Golden Plains LGA is on average younger than Regional Victoria. Golden
Plains LGA has a slightly higher proportion of people across the 35 to 64 age cohorts and a
much higher proportion of people aged 5-14 years. This suggests there are young families living
in the area.
Table 5. Population by Age 2010
Golden Plains (S) Regional VIC VIC
Estimated Residents (2011) 18,917 1,335,712 2,351,228
0-14 years 24% 19% 19%
15-64 years 66% 64% 67%
65+ years 11% 17% 14%
Source: ABS Regional Population Growth: cat. No. 3218.0 (2011)
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Figure 7. Population by Age, Golden Plains LGA and Regional Victoria
18%
16%
14%
12%
10%
8%
6%
4%
2%
0%
0-4 years 5-14 15-19 20-24 25-34 35-44 45-54 55-64 65-74 75-84 85 years
years years years years years years years years years and over
Golden Plains (S) Regional VIC
Source: ABS Census of Population & Housing, 2011
Whilst the population structure is typically younger than the regional Victorian average, the
majority of the population growth in Golden Plains LGA has occurred in the older age cohorts.
Over 2006-2011, the 55-64 year age cohort grew 0.63% (344 persons), and the 65-74 age
cohort grew by 0.85% (263 persons).
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4.3 Household indicators
The predominant dwelling type in Golden Plains LGA is detached dwellings, which account for
98.8% of total occupied dwelling stock. Golden Plains LGA has a significantly lower proportion
of high density stock (0.4%) compared to the Regional Victorian average of 6.1% of total
housing stock.
Golden Plains LGA has a very low rate of unoccupied dwellings (2.8%) compared to the regional
average of 17%. This may reflect a more permanent population base.
The LGA has a similar proportion of homes owned outright (37.5%) in comparison to the rural
Victorian average of 37.4%. In 2011 51% of homes were being purchased and on average 8.7%
of the homes in the LGA were being rented.
This is summarised in the table below.
Table 6. Households summary, Golden Plains (S) and Regional Victoria 2011
Dwelling Structure Golden Plains (2011) Golden Plains % Regional VIC %
Separate House 6,224 98.8% 88.8%
Medium Density 18 0.3% 3.9%
High Density 24 0.4% 6.1%
Other (including not stated) 32 0.5% 1.1%
Total Occupied Private Dwellings 6,298
Vacancy
Occupied Private Dwellings 6,298 97.2% 83.0%
Unoccupied Private Dwellings 179 2.8% 17.0%
Total Dwellings 6,477
Tenure Type
Owned 2,362 37.5% 37.4%
Purchasing 3,213 51.0% 32.1%
Renting 551 8.7% 24.2%
Other/Not Stated 172 2.7% 6.4%
Total Occupied Private Dwellings 6,298
Source: ABS Census of Population and Housing (2011)
4.4 Population Outlook
The population outlook is dependent on a number of factors such as employment
opportunities within the Golden Plains LGA. Victoria in Future (VIF) 2012 forecasts project the
population of Golden Plains LGA to increase to 26,870 persons by 2031; growing at an annual
rate of approximately 1.74%. This is a slower rate of growth compared to recent historical
trends where the population has been growing at an average of 2.14% between 2006-2011.
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Figure 8. Projected Population Growth, Golden Plains (S): 2011-2031
30,000 2.0%
25,000
1.5%
20,000
15,000 1.0%
10,000
0.5%
5,000
0 0.0%
2011 2016 2021 2026 2031
Golden Plains (S) AAGR (%)
Source: DPCD Victoria in Future Population Projections (2012)
4.5 Income and Occupation
Income
The median personal income is represented in the table below for Golden Plains LGA and
Victoria. Income earning residents in Golden Plains earn on average 5.2% less than the state
median in 2011, which has improved from 7.2% in 2006. The average annual growth in Golden
Plains between both 2001-2006 and 2006-2011 has been stronger than that registered
throughout Victoria.
Table 7. Individual Income 2001-11, Golden Plains (S) and Victoria
Golden Plains (S) VIC
Income and Wealth
2001 2006 2011 2001 2006 2011
Median total personal income ($/weekly) 330 423 533 380 457 562
Variation from VIC -13.2% -7.4% -5.2%
Average Annual Growth Rate 5.1% 4.7% 3.8% 4.2%
Source: ABS Census 2011
Occupation
As at 2009, there were eight occupation types within the Golden Plains LGA that entailed more
than 8,783 employment positions. Technicians and Trade Workers constituted the largest
group, representing 18.5% of the LGA’s workforce, followed by 15.3% Professionals and 14.4%
Managers.
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Table 8. Wage and Salary Earners by Occupation, Golden Plains (S) 2011
Wage and Salary Earners by Occupation (2011) No. %
Technicians and Trade Workers 1,623 18.5%
Professionals 1,346 15.3%
Managers 1,262 14.4%
Clerical and Administrative Workers 1,086 12.4%
Labourers 1,052 12.0%
Community and Personal Service Workers 851 9.7%
Sales Workers 803 9.1%
Machinery Operators and Drivers 760 8.7%
Total 8,783 100.0%
Source: ABS Time Series Profile, 2011
4.6 Industry Structure
Businesses by Industry
As at June 2011, it is estimated that there were 1,575 businesses in the Golden Plains LGA. As
shown in the following table, the local workforce is dependent on the Agriculture, Forestry and
Fishing sector, followed by Construction and Professional services.
There were 597 businesses that employed between 1-19 persons and 27 businesses had
employee counts of greater than 20 persons, together constituting 39.6% of all 597 businesses
that contributed to the local employment growth.
By industry, the top five employers in Golden Plains are:
1 Agriculture, Forestry and Fishing (212 employing businesses);
2 Construction (132 employing businesses);
3 Transport, Postal and Warehousing (68 employing businesses);
4 Professional, Scientific and Technical Services (33 employing businesses); and
5 Accommodation and Food Services (28 employing businesses).
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