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Stormwater Levy

2007/2008 Stormwater Management Service Charge (Section 496A)

Charge Methodology

The Departmental guidelines provide Council with the opportunity to levy charges on a catchments area or global basis, while ensuring that the total income generated does not exceed the level of expenditure for new and additional stormwater management. Council has a large capital works program to complete for stormwater and therefore it has been adopted that a global approach will be used to enable significant works to be funded at a given time using all revenue levied, rather than waiting to collect enough funds in individual catchments. In accordance with these guidelines, councils still need to ensure equitable distribution of stormwater management services over time.

Properties categorised as Residential (Not being Strata Titled)

A flat charge of $25.00 for a Stormwater Management Service Charge is to be charged against each eligible assessment categorised as Residential within the urban stormwater catchment. This charge has not changed from 2006/2007; however some additional properties have been identified as within Councils urban stormwater Catchment area.

Properties categorised as Residential (Strata Units)

The cost of managing stormwater runoff from impervious surfaces is usually substantially less per residential strata lot than per standard residential property. It is for this reason that a flat charge of $12.50 for a Stormwater Management Service Charge is to be levied against each eligible residential strata unit within the urban stormwater catchment. This charge has not changed from 2006/2007.

Properties categorised as Business (Not being Strata Titled)

A Stormwater Management Service Charge is to be charged against each eligible assessment (not being strata titled) categorised as business within the urban stormwater catchment area based on the total area of the assessment. A charge of $25.00, plus an additional $25.00 for each 350 square metres or part of 350 square metres by which the area of the parcel of land exceeds 350 square metres.

The criteria for charging business properties by using property areas has been recommended using the guidelines provided by the Department of Local Government.

Exceptions to area based charging Business Properties

After an analysis of business land areas is was discovered that certain business properties covering large property areas would incur significant charges for Stormwater management that would not be reflective of the level of stormwater service provided by Council. These properties involve large portions of open space not being impervious in nature and therefore not producing an increased level of stormwater run-off.

Some examples of properties that fall into this category include:

  • Bowling Clubs
  • Golf Courses
  • Caravan Parks
  • Resorts
  • Business properties populating a small portion of a total land area

Therefore, under these circumstances, Council officers have reviewed the Stormwater Management Service Charge to be applied to these types of properties so that a more equitable charge can be determined. This review process has involved an analysis of the impervious surfaces on each reviewed property to reflect a charging structure similar to business properties of a smaller land area. Properties with a land area in excess of 4,000 square metres have been reviewed in relation to the impervious surface area of the land, with the charge determined by grossing up the impervious surface area by a factor of 11%, in accordance with the assumptions made within the departmental guidelines. See example below:

Total land area 50,000 sq metres
Impervious surface area* 1,000 sq metres

* The impervious surface area is calculated by identifying this surface type on individual properties using Councils aerial photos and the GIS system.

Calculation of Area to be charged

As the departmental guidelines assume that 90% of business properties are impervious, the impervious surface is grossed up to determine the area of the land subject to the charge. That is:

Impervious area /90 x 100

= 1000 / 90 * 100
= 1111 square metres.

Applying charges recommended for business properties, the charge will be:

For the first 350 square metres $25.00
For the second 350 square metres $25.00
For the third 350 square metres $25.00
For the remaining square metres $25.00
Total charge $100.00

It should be noted that properties with an area less than 4,000 square metres are able to have the charge reviewed under the proposed appeal process.

Properties categorised as Business (Strata Units)

It is recommended to levy a Stormwater Management Service Charge against each eligible business strata unit within the urban stormwater catchment area based on one of the following two scenarios:

Scenario 1 Business Strata Units Only

If the strata complex contains only business properties (i.e. not mixed development) the charge per strata unit will be calculated by using a charge of $25.00 per 350m of the land area occupied by the strata scheme (or part thereof), which is then divided by the number of strata units in the strata scheme. In the event that this approach results in charge of less than $12.50 per unit, a minimum charge of $12.50 will be levied on each strata unit. A maximum charge of $50.00 per strata unit also applies to those units having a calculated charge greater than this amount.

This method of charging caters for the possibility of business strata units being charged more than the flat charge of $12.50 being the charge for residential strata units.

This method of charging is consistent with the methodology used to charge non-strata titled business properties.

Scenario 2 Business & Residential Strata Units (Mixed Development)

If the strata complex contains mixed development (i.e. properties rated as both business and residential) each strata unit being either categorised as residential or business be charged a flat Stormwater Management Service Charge of $12.50. This charge has not changed from 2006/2007.

Urban Land Exempt from the Stormwater Management Service Charge

The same exemptions that apply to non-rateable properties for other rates and charges also apply in respect of the stormwater management service charge pursuant to the Local Government Act.

In addition, the following properties are also exempted from this charge under the provisions:

  • Rateable land owned by the Crown
  • Rateable land under a lease for private purposes granted under the Housing Act 2001 or the Aboriginal Housing Act 1998
  • Vacant Land

Councils are also not to levy the charge on properties where they do not provide a stormwater management service.