Kempsey residents calculate the impact of a proposed rate increase
Published on 11 December 2023
A rate calculator tool available on Kempsey Shire Council’s engagement website is helping concerned residents understand the impact of an increase in rates that could be implemented from next financial year.
In November, Council resolved to apply to the Independent Pricing and Regulatory Tribunal (IPART) for a 42.7% cumulative increase to the general fund rates over three years from July 2024.
The application for the rate increase must be lodged in February 2024 and if approved could see a 7.9% increase on the current base rate in year one and 15% increases in years two and three.
Stephen Mitchell, Director of Corporate and Commercial said that the rising cost of operations and limits on income generating capacity means Council is faced with a forecast deficit of $79 million over the next 10 years.
“Over recent months of community engagement and education we have worked hard to explain the complex issues involved in Council’s operating budgets and long term financial forecasts.
“The rate calculator provides an uncomplicated way for people who are concerned about the potential of a rate increase, to understand what impact this may have on their individual rates bill.
“The other benefit of the rates calculator is that it shows ratepayers that the percentage of proposed rate increase is not applied to the total bill amount, but only to the general fund or property line on the rates bill,” said Mr Mitchell.
The calculator is available on Council’s engagement website ksc.pub/srv and ratepayers just need the current years rates notice to enter the land valuation into the form to see the possible increases over the next three years.
Also available on the website and open for public feedback are the updated procedures that explain the support that is available to ratepayers in financial hardship along with a revised long term financial plan and asset management plans.
“The public exhibition of the revised Hardship and Debt Recovery Procedures along with the financial planning documents is an important opportunity for the community to provide feedback, ahead of these documents being presented to Councillors for adoption in January.
“Ultimately, these documents are part of the evidence Council is required to present to IPART with the special rate variation application,” concluded Mr Mitchell.
Submissions on the public exhibition of the Hardship and Debt Recovery Procedures, Long Term Financial Plan and Strategic Asset Management Plan close on Friday 19 January ahead of Council’s extraordinary meeting scheduled for January 30, 2024.