What does Parity mean?
The definition of Parity is listed as being “the state or condition of being equal” and this applies in this instance as being to equalise the rates paid by all ratepayers of the new Shire of Narrogin.
Who does it apply to?
The Parity Factor applies to all former Shire of Narrogin ratepayers. The former Town of Narrogin ratepayers are not required to pay the Parity Factor as the rate in the dollar paid by the former Town ratepayers is already at the desired level to be achieved over the 10 year period.
What is the Parity Factor?
The Parity Factor is a percentage applied to all former Shire of Narrogin Ratepayers to raise the level of rates paid to the level deemed appropriate by the former Shire of Narrogin and Town of Narrogin. It was set in place through a Memorandum of Understanding signed by both former Councils.
What is the Parity Amount for GRV?
The Parity amount for Gross Rental Value properties has been set at the gap between the former Shire of Narrogin rate in the dollar and the Town of Narrogin rate in the dollar as detailed in the former Shire’s 2015/2016 Budget and this gap is applied at an average of 6.92% per annum.
What is the Parity Amount for UV?
The Parity amount for the Unimproved Valuation properties has been set on the gap of the rate in the dollar of the Shire of Wagin and the Shire of Narrogin for the respective 2015/2016 Budgets and this gap is applied at an average of 3.21% per annum.
What is the Natural Increase?
In this year’s rates the Natural Increase is 3.5%. The Natural Increase is the normal amount of additional rates required by all local governments to properly fund the required budget.
For the Rural Ward (former Shire) your increase is the parity factor plus the natural increase.
The Shire of Wagin was used as a basis for the UV rates as the Shire of Wagin has a very similar agricultural area and very similar commitments and requirements as the new Shire of Narrogin.
Why has it been implemented?
The Parity factor has been applied to ensure that all ratepayers contribute fairly to the rates of the new entity and that this increase be applied over a period of 10 years.
How long will it last?
The Memorandum of Understanding has set the parity time period to be 10 years to lessen the impact to the former Shire of Narrogin residents.
What is the Memorandum of Understanding?
This document was negotiated between the former Shire of Narrogin and former Town of Narrogin Elected Members to outline conditions, and agreements as to actions relating to the Merger. This document is now being used as the guiding principle for certain actions of the new entity.
The provisions of the Memorandum of Understanding include the following:
4.17( b) – a parity factor is to be applied to each rate category, based on 2015/2016 budget figures, at a fixed percentage each year
4.17 (c) – a natural increase applies to all rates – rural and urban – and will vary each year
4.17 (f) – GRV benchmarked to former Town, UV benchmarked to Shire of Wagin
4.18 (a) – UV parity factor to be applied equally each year for 10 years
4.19 (e) – GRV parity factor to be applied equally each year for 10 years