Council to seek endorsement for community consultation on special rate variation

MEDIA RELEASE 11 August 2023

A report going to the Council meeting on Wednesday, 16 August will seek the endorsement for community consultation on a potential application to the Independent Pricing and Regulatory Tribunal (IPART) for a permanent Special Rate Variation (SRV).

The report recommends an SRV which consists of 43.5 per cent in 2024-25 (including the forecasted rate peg of 3.5 per cent) and 17.5 per cent in 2025-26 (including the forecasted rate peg of 2.5 per cent), representing a cumulative Special Variation of 68.6 per cent over two years, which is Option 2 in the draft Long Term Financial Plan.

General Manager David Sherley said Council has supported a steadily growing population and maintained its infrastructure and services within the scope of its revenue growth, in line with the rate peg increases established by the NSW Government.

“In recent years, however, this has become increasingly difficult: the recent COVID-19 pandemic; the impacts of recent weather events on local infrastructure; and the current highly volatile inflationary environment, which has increased Council’s costs faster than its revenue growth, have all placed considerable stress on Council’s budget,” he said.

“With costs out-stripping revenue, resulting in operating deficits, Council has needed to utilise its cash reserves and reduce infrastructure renewal and maintenance to ensure a balanced budget. Council has introduced a large range of efficiency measures to reduce operating expenses, and in some areas, has also been able to utilise State and Federal Grants to fund infrastructure renewal and operations. However, with unrestricted cash balances dwindling and State and Federal budgeting constraints reducing the likelihood of future substantial grants; Council must consider increasing rates revenue to adequately fund its current services and infrastructure needs.”

If Council votes to proceed with community engagement, there will be a range of information available to the community including dedicated information sessions and opportunities to provide feedback.

ENDS
Media contact: Media Officer