What happens next with the rate increase?

Published on 21 May 2024

The state government’s independent regulator has given Kempsey Shire Council permission to implement a rate increase of 24%, spread over two years. The proposal is for a 7.9% increase in property rates for the first year, followed by a 15% increases for 2025-26.

Adopting the increase

The first step is to adopt the rate rise. The decision whether to implement the 7.9% increase will now fall to Councillors when they set the 2024-25 rates at the June Council meeting.

At that meeting they will consider the income and expenditure outlined in the Operating Plan and budget for 2024-25. Drafts of these documents are on public exhibition until Sunday 19 May and the community is invited to review and comment on them at ksc.pub/budget2024.

The final decision on the increase of 15% permitted in the following year will not need to be made until the Council meeting in June 2025.

Financial sustainability

Council’s focus remains on reducing costs, and ensuring the right services are being delivered in the most efficient way.

The 10-year Long Term Financial Plan will also be adopted at the June meeting. This includes a renewed Financial Sustainability Program that outlines the actions the organisation will implement to deliver on this goal.

Despite the proposed increase in rates, this document still forecasts a significant deficit. In the coming year, staff will look for savings by reviewing operations of Kempsey Airport, conducting service level reviews, and aligning the most efficient staffing levels with those services. This will result in a number of difficult decisions to be considered by Councillors over the next 12 months.

Advocating for government support

There is strong evidence that the situation faced by councils across the country is linked to drastically reduced distribution of tax income paired with costs previously covered by state and federal governments being pushed to the local level.

In the coming months, Council will make submissions to state and federal government inquiries on the financial sustainability of local government. Through this advocacy work Council will petition to identify and implement a more equitable funding model.

A new Council

The NSW Local Government elections will be held on Saturday 14 September at which point the community will elect the mayor and councillors for the next four years.