Hume council has decided on a Capital Improved Value (CIV) model for waste charge services on non-residential properties.
In the meeting on Tuesday, April 11, it was decided a CIV methodology would be used for commercial and industrial properties when the waste services charge commence on July 1, 2023.
The decision comes after months of deliberation from the council on how to proceed with the proposed waste charge system.
At the last council meeting, council moved forward with a flat-fee payment model for residential properties.
The decision solidifies the methodology for the 2023-24 financial year which will charge a flat-fee public waste service charge for residential properties and a CIV based service rate for non-residential properties.
Cr Carly Moore said that the CIV model will ensure that non-residential properties pay their fair share when it comes to the public waste charge service.
“For me, the fairest system is that everybody pays the same because everybody is receiving the same service for residential properties,” she said.
“Obviously that’s not the case for our commercial and industrial properties. That’s why I’m supportive of them being based on CIV.”
Currently, all costs associated with waste services are covered through the general rate revenue. As a part of rates, this is calculated based on the value of the property through a CIV model, which is revalued each year.
Cr Karen Sherry reiterated that the waste services charge only achieves cost recovery and it does not generate a surplus or profit for council.
“I just want to reassure the public that introducing a waste service charge the current proportion of your rates currently used to fund the applicable waste services that you’re receiving would be removed from the general rates,” she said.
“Then the cost of delivering these waste services would then be added back into the rates notice in the form of a waste services charge based on the methodology selected by council.”
