Council applies for a permanent additional special rate variation

MEDIA RELEASE 17 March 2022

Council is applying for a permanent additional special rate variation of 2.5 per cent to ensure continued financial sustainability and to deliver a budget in line with what was planned in the four-year Delivery Program and Operating Plan 2021-2025.

Mayor Robert Taylor said the special variation will allow Council to maintain the status quo in terms of the budgetary planning process and maintain services to the community.

“The 2.5% increase will raise an additional $737,108; which is less than $40 per year on an average rate bill,” he said.

Council had planned and developed the budget for the 2022/23 financial year on a rate peg increase of 2.5%, with a growth factor of 1.3%, (in line with advice from IPART) but the rate peg was limited to 0.7% by IPART (plus a 0.2% increase for population growth), a total of 0.9%, resulting in a budgeted income loss of almost $500,000 for the financial year.

In addition, Council had also developed its four-year delivery plan and operating budget using a rate increase of 2.5%. The lower than expected rate peg will result in a budgeted loss of almost $500,000 which will impact on Council’s financial sustainability and delivery of services to the community.

It is anticipated that IPART will make the application open for community feedback for three weeks and is expected to make a decision on the application by 21 June.

ENDS
Media contact: Media Officer