|If you own a berth licence for a marina or hardstand berth at North Haven you would have recently received your council rates from the City of Port Adelaide Enfield.
You may have noticed that there has been an increase in the amount payable from previous years.
In some cases the amount is negligible, in others it represents a significant increase. However it is important that you understand that these increases are the thin end of the wedge and that council has approved a recommendation to incrementally increase rates on marina and hardstand berths over the next 7 years.
The City Manager’s motion that was recently supported by the majority of councillors has resulted in the introduction of the ‘minimum rate’. The ‘minimum rate’ is a figure that is calculated by the council to capture the lowest 35% of all property values in the council area. Relating this to housing, the ‘minimum rate’ would apply to a residential property up to the value of around $300,000.
We have gone through all of the arguments possible with council, however they believe that they have no option under the current Local Government Association Act to be able to provide infinite rate relief via rebates that they have been providing to berth owners for approximately the last 20 years.
Recently the CYCSA, RSAYS and a number of other marina operators and occupiers challenged the City of Port Adelaide Enfield Council, and while not successful in defeating the rate increase recommendation we were successful in a number of other ways.
Councillors are now much more aware of the inequity of charging a marina or hardstand berth the ‘minimum rate’. As a result the amount of rebate being offered to marina berth owners in year 1 went from 50% to 60% and more importantly, the rebate for hardstand berth owners went from 50% to 90% in year 1.
Councillors were also very much in support of conducting a workshop to look at ways of reducing the council rate impost on berths. We have been advised that the date and time of this meeting has now been set. The workshop is to take place at the City of Port Adelaide Enfield Town Hall at 7pm on Tuesday 18 September 2012. It is important that you try to attend this meeting and show the councillors that this is very much a real issue that must be resolved.
In the meantime I suggest that you closely study your council rates notice, particularly the estimated value that the council has nominated for your berth. In most cases the value of berths will be below a threshold of $132,000 where the ‘minimum rate’ will override the rate in the dollar, however I believe that it is important that council is aware of the current tightening of the market in relation to marina berth values and that your valuation should be realistic. This will be very important if the introduction of the ‘minimum rate’ is overturned in the future.
Executive Officer, CYCSA
Council's revised motion.
Letter to Minister Wortley from Dr Susan Close MP - 16 July 2012
Craig Evans' Council Rates Meeting Presentation Notes
Geoff Catt's Council Rates Meeting Presentation Notes
Minister's Advice - Marina Rates Increase - 28 June 2012
'Berths Face Rebate Axe', article - Portside Messenger Wednesday 13 June 2012
Geoff Catt's presentation notes to PAEC on Rates June 2012
CONTACT INFO for Port Adelaide Enfield Councillors
Motion to increase rates to marina berths item 12.5.6 - March 2012
Marina Rating Workshop - City of Port Adelaide Enfield 24.4.12
Gary Johanson, article - The Advertiser Tuesday 1st May 2012
Le Fevre boaties 'threatened', article - Portside Messenger Wednesday 2nd May 2012
Link to Local Government Relations website explaining council rating taxation
Letter from the PresidentFurther information on this topic can be found in this Letter to CYCSA members from President Andrew Saies. However, please note that Council's motion was revised after this letter was sent, meaning information regarding how rebates will apply to hard stand berths is no longer correct. Please ensure you also read Council's revised motion.
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