neutralise any competitive advantage when competing with the private sector. Cost reflective pricing includes recognition of private sector equivalent costs such as rate of return, regulatory costs not incurred by Council and taxes Classification of the cost recovery for the service will determine the total revenue from fees and charges. Individual fees and charges will then be set based on fee and charge setting criteria. Target rate contribution will be determined by Council based on community needs and policy objectives. Services that are likely to attract a rate contribution are those which provide a broader community benefit as well as benefits to the individual users. The target that is set will be endorsed by Council and used by Service Managers to calculate required total fee and charge revenue. Service Managers will then set individual fees and charges based on expected usage. Each service will initially be assessed under the categories: 100% rate contribution (no cost recovery); Partial rate contribution; or 0% rate contribution (full cost recovery). Uniform pricing services which are provided at a similar level or standard will have the same fees across the municipality. Costs excluded in setting fees and charges Costs which are incurred for the benefit of Council, the Chief Executive, Directors and Legal Services and Governance Department will be excluded. These costs are not considered indirect costs but a cost of being a Council. These costs will be assessed in the calculation for the municipal charge (a fee on all rateable assessments to cover the fixed and unavoidable costs of governance). Ancillary Services In some instances a service which has been defined as users and having ‘general’ would not normally set a fee may charge users to access facilities/grounds e.g. weddings. Cost recovery of these services will be market driven and reflect full cost recovery plus margin. Uniform Pricing In order for users of a service to be confident that the fee charged will provide them with a similar level of service regardless of their social equity or location, Council will endeavour to adopt uniform pricing for like services. Transition period The base level of rate contribution for each service will be recognised as the levels approved within the 2016-17 Budget. Where there is a material difference between the required level of rate contribution and the base level of rate contribution Council will consider phasing increases in over a period of time. The phase-in period will be determined following consideration of the user’s capacity to pay, commercial implications and the funding pressures on Council. Policy Review The Fees and Charges Policy will be reviewed annually during budget development, with consideration given to service levels and productivity.
neutralise any competitive advantage when competing with the private sector. Cost reflective pricing includes recognition of private sector equivalent costs such as rate of return, regulatory costs not incurred by Council and taxes Classification of the cost recovery for the service will determine the total revenue from fees and charges. Individual fees and charges will then be set based on fee and charge setting criteria. Target rate contribution will be determined by Council based on community needs and policy objectives. Services that are likely to attract a rate contribution are those which provide a broader community benefit as well as benefits to the individual users. The target that is set will be endorsed by Council and used by Service Managers to calculate required total fee and charge revenue. Service Managers will then set individual fees and charges based on expected usage. Each service will initially be assessed under the categories: 100% rate contribution (no cost recovery); Partial rate contribution; or 0% rate contribution (full cost recovery). Uniform pricing services which are provided at a similar level or standard will have the same fees across the municipality. Costs excluded in setting fees and charges Costs which are incurred for the benefit of Council, the Chief Executive, Directors and Legal Services and Governance Department will be excluded. These costs are not considered indirect costs but a cost of being a Council. These costs will be assessed in the calculation for the municipal charge (a fee on all rateable assessments to cover the fixed and unavoidable costs of governance). Ancillary Services In some instances a service which has been defined as having ‘general’ users and would not normally set a fee may charge users to access facilities/grounds e.g. weddings. Cost recovery of these services will be market driven and reflect full cost recovery plus margin. Uniform Pricing In order for users of a service to be confident that the fee charged will provide them with a similar level of service regardless of their social equity or location, Council will endeavour to adopt uniform pricing for like services. Transition period The base level of rate contribution for each service will be recognised as the levels approved within the 2016-17 Budget. Where there is a material difference between the required level of rate contribution and the base level of rate contribution Council will consider phasing increases in over a period of time. The phase-in period will be determined following consideration of the user’s capacity to pay, commercial implications and the funding pressures on Council. Policy Review The Fees and Charges Policy will be reviewed annually during budget development, with consideration given to service levels and productivity.
8d4f53962fbaa79-councilpolicycpl505.2feesandchargespolicycouncilendorsedmodification20sept2017referencetofairplaystrategy.DOCX