Councillors agree on rates variation pathway

Councillors have responded to endemic funding shortfalls and escalating service delivery costs by endorsing notification to the Independent Pricing and Regulatory Tribunal of Council's intent to apply for a Special Rate Variation on the shire's general rates.

---

---

17 November 2022

Bega Valley Shire Councillors have responded to endemic funding shortfalls and escalating service delivery costs by endorsing notification to the Independent Pricing and Regulatory Tribunal (IPART) of Council’s intent to apply for a Special Rate Variation (SRV) on the shire’s general rates.

The decision was made at the Council meeting yesterday, with Councillors resolving to start the application process.

Council Mayor Russell Fitzpatrick said the decision came after effecting numerous cost savings and efficiencies and the subsequent obvious need to enhance the shire’s financial sustainability and close the gap on escalating costs.

“Yesterday, Councillors resolved to start the process to address our precarious financial position that comes from rising costs, insufficient and capped government funding and Council taking on greater responsibilities over time often without choice,” Cr Fitzpatrick said.

“It’s a perfect storm that no-one wants to be caught in and certainly not unique to our shire, but today we decided to notify IPART of our intent to apply for an SRV.

“This does not mean we have decided an amount to increase rates by, only that we will advise IPART we are going to discuss with our community the need to increase rates, reduce services or a combination of both.

“As it stands, we do not have the funds needed to continue maintaining the community’s assets or to continue providing the vast range of services we know the community relies on.

“Assets and services can be ambiguous local government words, so I want to make it clear that Council needs more money to maintain its 1400km of roads, it’s public swimming pools, it’s parks and playgrounds, airport and libraries. The list goes on.”

Council’s updated Long Term Financial Plan 2023-32 has been placed on public exhibition, with four options modelled for discussion with the community. Option A is a single year 90% increase; Option B is a 2-year increase of 45% increase in 2024 and 37.2% increase in 2025; Option C is a single year 43% increase and Option D is no increase above rate peg.

“We have a responsibility to our community and future generations to remain financially viable,” Cr Fitzpatrick said.

“We know any increase in rates is difficult to contemplate for many in our community, but we need to take steps to reduce the ever-expanding gap between our income and expenses.

“Before any application is made to IPART, we will connect with the community over the coming months to discuss our options.

“When we have a full picture of how the community feels about a proposed rate increase, Councillors will meet again in February to decide on how we proceed.

“It’s important to understand that any SRV increase to your general rates does not mean an increase to your entire rates bill. Other billable items such as water, sewer and waste will not increase by any final SRV amount.

“The base rate is the standard charge applied to all properties within their rateable land category, such as residential, business or farming. The ad valorem rate is tied to land value, so the actual cost of any proposed increase will vary across the shire.

“We realise that cost of living pressures are significant at the moment and want to remind our ratepayers that we offer various hardship options and a concession program for seniors.”

IPART is the regulatory authority that can approve or deny SRV’s. If Council decides to apply for an SRV and the application is approved, it will be applied on 1 July 2023.

For more information on the Special Rate Variation and to Have Your Say, visit Council’s website.

 

Have your say on the SRV

Councillors and Council staff will be at markets and community events this month and December to chat about the proposal.

• Eden Community Market, Saturday 19 November - 9am to10:30am
• Merimbula Seaside Market, Sunday 20 November - 9am to 10:30am
• Cobargo markets, 26 November - 9am to 10:30am
• Bermagui Growers and Makers Market, 1 December - 3:30pm to 5:30pm
• Candelo markets, 4 December - 9am to 10:30am

We are hosting two community events, each with four sessions. To allow us to manage numbers, register your session preference online.

• Bega Valley Commemorative Civic Centre - Monday 28 November
  Sessions will run hourly: 30-minute presentation; 30-minute question and answer with panel.
  • 3pm to 4pm
  • 4pm to 5pm
  • 5pm to 6pm
  • 6pm to 7pm
• Pambula Hall - Wednesday 30 November
  Sessions will run hourly: 30-minute presentation; 30-minute question and answer with panel.
  • 3pm to 4pm
  • 4pm to 5pm
  • 5pm to 6pm
  • 6pm to 7pm

There will also be an online meeting open to all on Monday 5 December from 6pm to 8pm, comprising a 45-minute presentation and an opportunity to ask questions.

You can also have your say via:

• Email: council@begavalley.nsw.gov.au
• Complete a short survey
• Call us on 02 6499 2222.

Feedback closes on 16 January 2023.

If Council resolves to submit an SRV application to IPART in February 2023, you can also make a formal submission directly to IPART in March 2023.

---

Making an enquiry

All media enquiries and interview requests are coordinated by Council's Communication and Events team under the adopted Communications Policy. To view this policy, visit Public Policies and search 'communications'.

To submit a media enquiry or to request an interview:

• email media@begavalley.nsw.gov.au
•  call 02 6499 2222

---

Councillors

Councillors can be contacted directly for enquiries regarding decisions of the elected Council and non-operational matters. Interviews with the Mayor should be arranged through the Communication and Events team contact details above.

---

Receiving information

If you’re a journalist or media organisation that would like to receive media releases and notifications about media opportunities, please email your name, title and contact details to media@begavalley.nsw.gov.au and we will add you to our distribution list.

You can also subscribe to Bega Valley Together and Business News, Council's fortnightly e-newsletters, or follow @begavalleyshirecouncil on Facebook  and Instagram.