Specified Area Rates (SAR) are annual rates paid by particular ratepayers to cover the expenses of enhanced services, facilities, or projects in their area that they use, benefit from, will have access to or contribute to the need for.
Ratepayers in the Cockburn Coast Redevelopment Area pay SAR to the City which has the statutory power under the Local Government Act 1995 to impose these rates.
Why are ratepayers in Cockburn Coast charged SAR (in addition to the general rates) and what do they pay for?The Cockburn Coast SAR was set up by the Council in June 2015. The money collected through the SAR ensures that parks and public areas, including specialised street lighting, are maintained to agreed-upon higher standards between the City and the developer. These higher standards include more frequent maintenance of garden beds, verges, grass and playgrounds and more frequent litter collections and road sweeping.
Initially, the developer covers these extra costs, but eventually, they are passed on to the landowners through the SAR. This includes the Shoreline (Robb Jetty) precinct and will grow with the future precincts within the development area.
What if there were no SAR?If the SAR were discontinued, the City would no longer be able to maintain the area in accordance with the higher service standards currently in place and expected by the community.
What is an appropriate balance for the SAR reserve account?This will ultimately be guided by asset management planning and the City’s experience in maintaining and renewing streetscapes and public realm assets over time. There will always be a surplus in the account due to the growing nature of the development and increase in public open space handed over to the City for maintenance. Also, many of the public realm assets are long lived and need replacing over the long term, hence the need to progressively build the fund in anticipation of these renewal needs.
How much is the SAR and how are charges calculated?In the 2024-25 Annual Budget, Council set SAR at a rate of $0.01200 cents in the dollar (RID). The SAR is calculated by multiplying the property’s Gross Rental Value by the SAR RID. This applies to houses, apartments, and vacant land.
How often is the rate reviewed?The rate for the SAR is reviewed each year as part of the annual budget and rating considerations.
How does Council determine what is paid for by the SAR versus general municipal funds?The SAR proportionally funds the higher level of service provided by Council for the Cockburn Coast development. This is determined through comparing against standard service costs across the City.
Can residents have input into how funds held within SAR are spent?No, SAR can only contribute towards applicable costs within the Cockburn Coast residential development. Applicable costs are those agreed to by Council in establishing the SAR, such as the higher frequency of maintenance services for parks and public areas.
Are there any other locations in Cockburn that pay SAR?Yes, the Port Coogee development.
Will the reserve fund ever be terminated?If the underlying reasons for having a SAR were no longer valid, it would be terminated with any remaining funds returned back to ratepayers (as required by legislation).