Community encouraged to be informed & have a say on rate rise options
Published on 01 September 2023
An investigation into how Kempsey Shire Council might address the forecast $103 million deficit over the next 10 years will give the community an opportunity to comment on three possible rate rise options.
Despite delivering a financial sustainability program over the last four years, rising costs of materials and labour, coupled with increases in interest rates and restrictions on how Councils can generate income from rates have all contributed to the forecast of an unsustainable deficit position.
Council is now faced with the difficult decision of considering making an application to the Independent Pricing and Regulatory Tribunal (IPART) for a Special Rate Variation (SRV).
Visit Your Say Macleay to learn more
Staff are undertaking a detailed investigation program to consider the price of meeting the community expectations for service delivery, the opportunities to reduce expenses and increase income and what level of SRV may be required.
Craig Milburn, General Manager said that the investigation includes presenting the three proposed options for an SRV to the community and providing an opportunity for feedback.
“We understand that many in our community are under financial pressure, but unfortunately the same things that affect households such as rising interest rates, cost of materials and limited ways to raise income, also affect Council’s ongoing operations,” said Mr Milburn.
“The three options we’ve developed would create financial and service level security and offer varied levels of improved maintenance and renewal for our assets such as roads and bridges. It could mean three incremental rate rises between July 2024 and July 2026, totalling either a 51%, 85% or 94% increase from the current level.”
One of the critical points Council is reminding ratepayers in the information materials prepared for the investigation, is that any potential rate rise is not applied to the total rates bill, only the General Fund (or property rate) line on the bill.
“Council’s budget process is complicated, and we’ve worked hard to be transparent and help people understand the difficult decision ahead. A series of fact sheets, common questions and a rates calculator so that people can see how the three options might impact their own rates bill are all tools we’re making available to the community to help get informed feedback,” said Mr Milburn.
Feedback through surveys and submissions will be sought through September and October through Council’s online engagement portal Your Say Macleay, at community briefings and face to face at markets and community events.
A report will be presented to the November Council meeting to consider the community feedback, options for reducing the impact on the most disadvantaged in our community and any further proposals for reducing expenses and services.
If Council resolve to apply for a Special Rate Variation, that application is made to IPART in February 2024 with a determination expected in May 2024 ahead of any changes in the 2024-25 financial year.
“Community submissions, questions and feedback will help with the decision ahead and we encourage all ratepayers to visit Your Say Macleay to learn more.”
“Alternatively come and speak to staff at local markets or submit a request for staff to make a presentation at your next community group meeting,” concluded Mr Milburn.
Have your say – read the background information, fill out a survey, make a submission, use the rate calculator, visit a pop-up stall, book a community briefing and ask questions at ksc.pub/financialfuture