A rating review is one of the most impactful processes a council can undertake, directly influencing revenue streams and community trust. However, its complexity demands careful preparation to ensure the process is equitable, transparent, and aligned with legislative requirements. Here are critical considerations before embarking on a rating review.
First, understand your objectives. Define what the council aims to achieve, whether it’s simplifying the rating structure, improving equity, or addressing long-term financial sustainability. A clear vision ensures that the review remains focused and purpose-driven.
Next, engage stakeholders early. Councillors, ratepayers, and key community groups should be part of the conversation from the outset. Transparent communication about the review’s purpose and potential outcomes fosters trust and reduces resistance to change.
Compliance with legislation is non-negotiable. Familiarity with relevant laws, such as Section 101 of the Local Government Act, is essential to ensure decisions are defensible and mitigate the risk of judicial review.
Analyse existing data thoroughly. Accurate, comprehensive data forms the backbone of effective rates modelling. Understand your current revenue streams, ratepayer demographics, and property classifications to identify issues and opportunities.
Scenario modelling is vital. Use dynamic tools to test multiple scenarios and their impacts on different ratepayer groups. This helps the council anticipate challenges, evaluate alternatives, and make informed decisions.
Finally, consider the long-term implications. A rating review isn’t just about immediate outcomes; it’s about setting the groundwork for sustainable financial management that benefits the community for years to come.
Undertaking a rating review is a significant commitment, but with the right preparation, it can strengthen the council’s financial position and foster greater confidence in its decision-making. At Ibis Information Systems, we provide the expertise and tools to guide councils through every step of the process. Contact us today to learn how we can help you achieve a more equitable and sustainable rating structure.
