Cost Adjustors
After state averages for revenue and expenditure are applied to each local government (according to drivers such as UCVs, population or traffic volumes for example), the Commission alters the assessment for factors outside the council's control that can affect its ability to rate at capacity or spend at average, in line with the Effort Neutrality principle. These factors are termed cost adjustors and are the key instrument the Commission used to establish the relative grant need of each council. For example, community amenities include an adjustor for demography, or age make up of the local population, to reflect the fact that residents under 19 and over 65 years of age place additional pressure on these facilities.
There are twelve cost adjustors:
- Climate
- Demography
- Dispersion
- Growth
- Locality
- Location
- Regional Role
- Scale
- Subgrade
- Tourism
- Terrain
- Urban Density
A description of these cost adjustors and where they are applied
is detailed in the Cost
Adjustors fact sheet (
PDF 87 kB).
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