Bega Valley council agrees on two-year rates rise application to IPART

Last week staff stepped back from last year's recommendation of a 90 per cent increase, after receiving strong community opposition and guidance from a report looking at the shire's ability to pay.

On Wednesday, February 1, with three days to go before submissions must be in to IPART, councillors stepped back again, moving from the 43 per cent proposed in the business paper for the meeting.

Council will now look to spread the 43 per cent increase over two years in a way that results in the same total rates revenue over the 10-year long term financial plan but with an arguably lessened impact on ratepayers in the short term.

Council will ask IPART to approve an SRV of around 24 per cent (inclusive of the 4.1 per cent rate peg) for the 2023/24 financial year and then a further (approximate) 22 per cent (exclusive of the rate peg which is unknown at this stage) for the 2024/25 financial year.

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There was not total agreement on the SRV proposal, nor will it solve council's financial problems.

Council CEO Anthony McMahon had already flagged that a further rise could be needed in four years' time under the 43 per cent rise option.

Cr Mitchell Nadin had proposed an SRV rate rise be deferred while an up to date long-term financial plan was prepared and put on exhibition. He felt there were too many unknowns to allow the SRV to proceed to IPART.

"The thing that really bothers me is this rate rise will not make us financially sustainable. All we're looking at is boosting the revenue. We will be doing this again in four years' time," Cr Nadin said.

However he was in the minority with Crs Porter and Griff joining him but all other councillors agreeing with the necessity to have some increase from July 1, 2023.

More to come