The local business community has been working with Council on a proposal to extend a long-running program to revitalise Coffs Harbour's City Centre as a vibrant commercial and community precinct. The program was initiated in 2000 - with funding support from a Special Rate paid by CBD property owners - and has delivered outstanding results. The existing Special Rate is due to expire in June 2012.
A scope of new works has been suggested to support future growth of the City Centre. Unfortunately Council cannot fund a new City Centre works program without additional revenue. To meet the funding shortfall an application has been sent to IPART (Independent Pricing and Regulatory Tribunal) seeking approval to continue the CBD Special Rate for a further ten-year period.
Council will be advised in June 2012 of IPARTs decision.
Proposed Financial Impacts
Council’s application to IPART is based on the current level of funding from the CBD Special Rate being maintained and increased by the annual rate pegging allowance over the next ten years.
The following table shows the estimated annual rate revenue to be generated over this period from the proposed Special Rate continuation.
Please Note: Yields after 2012/2013 have been calculated using an estimated rate pegging allowance of 3%.
|
Year
|
Year Starting
|
CBD Special Rate Yield
|
Annual Rate Pegging Allowance (%)
|
|
1
|
1/07/2012
|
$668,900
|
3.6
|
|
2
|
1/07/2013
|
$688,970
|
3.0
|
|
3
|
1/07/2014
|
$709,640
|
3.0
|
|
4
|
1/07/2015
|
$730,925
|
3.0
|
|
5
|
1/07/2016
|
$752,850
|
3.0
|
|
6
|
1/07/2017
|
$775,435
|
3.0
|
|
7
|
1/07/2018
|
$798,700
|
3.0
|
|
8
|
1/07/2019
|
$822,660
|
3.0
|
|
9
|
1/07/2020
|
$847,340
|
3.0
|
|
10
|
1/07/2021
|
$872,760
|
3.0
|
|
TOTAL
|
|
$7,668,180
|
|
City Centre Masterplan Works
If Council's application is successful, the first step will be the development of a City Centre Masterplan in conjunction with a CBD Masterplan committee.
This Masterplan will develop a program of works to be funded with the proposed CBD Special Rate.
Outcomes from our business community consultation process have identified the following key priorities that will become part of the brief for the development of the Masterplan works:
- Improvement of car parking facilities in the City Centre.
- Improvement of pedestrian and traffic flow in the City Centre.
- Streetscape improvements within the City Centre.
The fact there is not a pre-determined works program has been considered, by relevant stakeholders, as an opportunity to bring ‘fresh eyes’ to works which have been undertaken as a result of the previously mandated Special Rate and to develop, by committee consensus, a second stage of appropriate works.
Impact on CBD Business Rates
The proposed special rate continuation will only have an impact on Business properties within the Coffs Harbour CBD.
If the Special Rate is to continue for 2012/2013 and average ordinary rate for a CBD Business property will increase from approximately $7,005 in 2011/2012 to $7,096 for 2012/2013. This represents an average increase of approximately $91 or 1.3%.
If the Special Rate is not to continue for 2012/2013 and average ordinary rate for a CBD Business property will decrease from approximately $7,005 in 2011/2012 to $5,029 for 2012/2013. This represents an average decrease of approximately $1,976 or 28.2%.
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