Rates to rise with special variation

• Rate comparison for 2015/16. Cont

Rates in the Lachlan Shire look set to rise after Council began the community consultative process last week. Three community meetings were held in Lake Cargelligo, Condobolin and Tottenham. The Council outlined their application for a special rate variation, which will be put to the Independent Pricing and Regulatory Tribunal (IPART) by the end of this month. Council is seeking a 32.31 per cent rate rise over the next four years, which would see around $1 million returned to the bottom line. The rate increase is seen as an imperative part of Council’s bid to ‘stand alone’.

By Melissa Blewitt

Rates will rise in the Lachlan Shire if an application for a special variation is approved by the Independent Regulatory and Pricing Tribunal (IPART).

A proposed 32.31 per cent rate increase over four years will see Lachlan Shire Council (LSC) attempt to meet several financial, infrastructure and efficiency targets.

According to LSC General Manager Robert Hunt for LSC to become ‘Fit for the Future’ hard decisions had to be made.

“Following a thorough review of our operations, we reduced expenditure, cut staff, raised some user fees and charges, looked at increasing productivity, borrowed money, reviewed service levels and proposed a rate increase of 32.31 per cent to be staged over four years,” he said.

“LSC then met all the targets with the exception of scale and capacity which IPART stated was due to our population being under 10,000, however the Government believes some Councils do have scale and capacity and LSC is awaiting advice on this.”

LSC has twice previously engaged Micromex Pty Ltd to independently survey 250 community members on whether they would support a 33 per cent rate increase to enable LSC to be financially fit for the future and the majority of those surveyed indicated they would support a rate increase, Mr Hunt added.

“LSC is now making an application to IPART to approve a 32.31% increase over 4 years and part of that application process is to ensure the community is aware of the proposed rate increase and its financial impacts on residents,” he said.

“Of the 32.31 per cent increase, 9.31 per cent is represented by rate peg increases which would normally be payable over the four year period. LSC is basically seeking a five per cent per annum increase above the rate peg increase in each of the four years and this increase is to remain permanent.

“The usual rate peg increases will then resume in 2020/21.”

This means the cumulative impact on average residential rates at the end of the four year period will be $2.80 per week or $145 per annum.

For Non Urban Residential Rates it will be a cumulative increase of $3.54 per week or $184 per annum.

Businesses will be looking at $3.20 per week extra, or $166 per annum.

Farmland rates will increase $16.63 per week or $865 per annum.

Mr Hunt said the additional rate income would help LSC in maintaining council assets.

“LSC will allocate the additional rate income to increasing maintenance of council assets such as buildings and roads and renewal of infrastructure,” he said.

“This will ensure we attain and continue to meet the Government’s performance targets in relation to the level of maintenance and asset renewal.”

“Council also has a hardship policy should any ratepayer find it difficult to pay their rates and residents should contact Council’s Chief financial Officer Mr John Chapman for a confidential discussion” he added.

LSC met with interested community members at a series of public meetings at Lake Cargelligo, Condobolin and Tottenham.

 

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