BY DI SNEDDON
The Independent Pricing and Regulatory Tribunal (IPART) is expected to be hit by a record number of submissions after Cessnock City Council supported a 39.9 percent rate rise.
The decision was made last Wednesday when councillors voted in favour (nine to four)of a permanent one-year special rate variation of 39.9 per cent, to improve the council’s dire financial situation.
The decision came after months of independent review and analysis of Council’s financial history, current position, and future outlook by economic expert Professor Joseph Drew and his team of three professors, as well as extensive community consultation.
The Council report recognised that the independent analysis demonstrated the Special Variation was necessary for Council’s drive towards financial sustainability, while the proposals to adjust the base rate and review the rating structure is in response to community feedback.
Affordability and cost of living pressures were common issues raised during the community consultation.
Councils cannot just increase rates because they want to, and they cannot apply to IPART to increase rates without asking the community for their opinion first hence the consultation process.
Cessnock Council must provide detailed planning documents that indicate why they need the extra money and for what they are intending to use it.
IPART carefully assesses council special variation applications against five criteria set by the Office of Local Government. Criteria includes:
- a need for the special variation is clearly demonstrated in the council’s integrated planning and reporting documents
- evidence that the community is aware of the need for and extent of the rate rise
- the impact on affected ratepayers must be reasonable
- the council has publicly exhibited, approved and adopted the council’s integrated planning and reporting documents
- a history of well-documented council productivity improvements and cost containment strategies.
The IPART process includes plenty of opportunity for residents to comment on the proposed special variation once it is lodged.
Deadlines for council to apply for a variation is February 2 with IPART expected to announce its decisions across New South Wales by May after considering the applications and the consequent submissions.
Meanwhile, Muswellbrook Council is also proposing a SRV to apply exclusively to the mining rate category, safeguarding the Shire’s future and ensuring residents don’t bear the cost of mine closures.
Muswellbrook Mayor Jeff Drayton said the SRV would help maintain vital infrastructure and services while keeping residential, farming, and commercial rates among the lowest in the Hunter.
