A growing council on the edge of South East Queensland · Fees, Charges and Cost Recovery Review
Recovering $380,000 a year the schedule was giving away
Development activity had doubled but the fees and charges schedule had only been indexed by CPI for a decade. Councillors were being asked by ratepayers why they were subsidising developers.
59% of the cost of development assessment was carried by ratepayers. Across the whole schedule, $380,000 a year was not recovered where the policy said it should be.
Insight
Mapping every fee line to its cost centre showed development assessment fees recovered 41% of the cost of the service, while some community fees recovered more than their cost. Across the schedule, $380,000 a year of cost was not being recovered where the policy said it should be.
Advice
Adopt a written cost-recovery policy by fee category, lift development fees to full recovery over two years, and hold community fees where the policy intends a subsidy.
Opportunity
About $380,000 a year of additional recovery at full implementation, with every line defensible against its costing.
Results
The council adopted the policy and a two-year phase-in. The first year recovered an extra $210,000, and the fee report went to council with the costing behind every line.