Mannum Waters Separate Rate Rebate 22/23
Mannum Waters Separate Rate Rebate 22/23
In December 2022, Susan Close, Deputy Premier, Minister for Climate, Environment and Water wrote to Council informing them that there would be no requirement to obtain a water allocation to cover the Mannum Waters Marina annual evaporative losses for the period 1 September 2022 until 30 June 2023.
Based on this information, Council took the opportunity to sell the 156ML (being 10/12th of 187ML) allocated on the temporary water market. Due to the flood conditions, the market for temporary water was at a record low levels during 2023. Council has retained 21% of the proceeds due to the 21% contribution towards the cost of purchasing the permanent 187ML water entitlement, the balance of the proceeds have been distributed based on the same proportion that each property contributed to the levy.
A credit will be present on your 2023/24 Rate Notice for your properties portion of the net sale proceeds.
Proceeds Calculation:
Gross 156ML sold at an average of $17.50 per/ML =$2,730
Less Brokerage & Government Fees $ 413
Net Proceeds $2,317
Less Mid Murray Council Contribution 21% $ 463
Net Proceeds to be Rebated to Ratepayers $1,854
Distribution of Rebate/Credit:
Waterfront Properties/Berths 141,968 square metres rebated @ $0.007908 = $1,123
Non-Waterfront Properties 263,344 square metres rebated @ $0.002777 = $ 731
Net Proceeds to be Rebated to Ratepayers $1,854 (distributed based on the same proportion that each property contributed to the levy)
Zone 12 Class 3 Temporary water sales (Source Ruralco Water Brokers)
Due to the flooding event the sale price of temporary water is at historical lows, with many riverside irrigated properties inundated with flood waters.
Council’s policies in relation to this, including the Mannum Waters Separate Rate Policy, can be accessed by clicking here
Adoption of Mannum Waters Separate Rate
Council is required under the Landscape South Australia Act 2019 to cover the annual evaporation loss of 187ML within the Mannum Waters Marina.
Section 154 of the Local Government Act 1999 enables Council to declare a Separate Rate on rateable land to recover the costs associated with covering this obligation.
Council undertook public consultation on the Mannum Waters Separate Rate Consultation Paper – April 2022 during the period Tuesday 19 April 2022 to noon Thursday 2 June 2022 in accordance with Council’s Public Consultation Policy.
A report, Formal Submissions - Mannum Waters Separate Rate Consultation Paper - April 2022, was provided to Council for consideration at its meeting of 14 June 2022. The report outlined the public consultation process and feedback received, including provision of the submissions received and a summary of the common issues and comments provided as part of this process.
At the Council meeting held on the 12 July 2022, Council considered five options in relation to the Mannum Separate rate, including not raising a Separate Rate.
After considering the feedback received, and the options available, Council determined to raise a Separate Rate for Mannum Waters to recover the $1.534m cost (plus finance costs) to purchase the required 187ML permanent water entitlement over a period of 15 years.
In recognition of the current and future open space areas in Mannum Waters that are accessed by the general public to use and enjoy, Council increased its contribution of the costs from the 8.9% outlined in the Consultation Paper to 21% (from $122,000 to $328,000 plus financing costs).
This has resulted in the Mannum Waters Separate Rate being set to recover $1.206m plus financing cost over a period of 15 years.
Non-waterfront properties will receive a rebate of 65%.
Applications to pay the total Separate Rate contribution in one year (appropriately discounted by the associated financing costs), rather than the 15 year period of the Separate Rate closed on the 31 August 2022. If there were special circumstance that hindered any person to lodge their application by the 31 August 2022, please contact Council’s Rates Officer on 8569 0100 or email rates@mid-murray.sa.gov.au and consideration will be given to extend the closure date on a case by case basis.
Council’s aim in developing the Separate Rate is to ensure the process is as transparent as possible, and that the rate itself is equitable and affordable. In addition to offering a 15-year repayment option, Council also has a hardship policy where ratepayers who are in financial hardship can apply for assistance through a payment plan or extensions of time to pay.
What is the purpose of the Separate Rate?
To recover the costs associated with Mid Murray Council’s obligation under the Landscape South Australia Act 2019 to cover the evaporation loss of 187ML within the Mannum Waters Marina.
The basis of the Separate Rate and the amount payable for the year ending 30 June 2023?
The Separate Rate will be recovered on a proportional basis of 37 cents per square metre according to the measurement of ownership of each title issued or, until a title is issued, the rating assessment which encompasses the land, including Marina berths and Development Plans approved by Council within Mannum Waters.
Non-waterfront properties will receive a rebate of 65%, reducing the net cost to 13 cents per square metre.
How many years will the Separate Rate last?
The Mannum Waters Separate Rate will be for a period of 15 years. Over this period Council will recover the required $1.206m plus financing costs, with Council contributing the balance of $328,000 plus financing costs, to purchase a permanent water entitlement.
Is there an option to pay the total all in one year rather than 15 years?
A ratepayers total contribution to the Separate Rate can be paid in one (1) year, being 2022/23, rather than over the 15 year period of the Separate Rate. A discount of approximately 16.8% (financing costs) will be applied to an approved upfront payment application.
If I apply for the option to pay the total in one year rather than 15 years, will I receive an amended rate notice and when will I have to pay this amount?
The Council will issue you an amended rate notice with the higher adjusted Separate Rate, less the financing costs of 16.8%. The new revised rates amount (including the higher Separate Rate) will be payable over the four quarters being due on the 09/09/2022, 09/12/2022, 10/03/2023 and 09/06/2023. If payment is received in full during 2022/23, this Separate Rate will not appear for the balance of the 14 years.