Council accepts more could face payment difficulties as it proposes 7.5 per cent increase for some fees and charges

The proposal is expected to go on public exhibition for comment after the April 19 council meeting and then return to council for approval in June 2023.

The proposed increase for council fees and charges are separate from the special rate variation (SRV) which - if approved by IPART (Independent Pricing and Regulatory Tribunal) - would see a 24 per cent increase in general rates in July 2023 and a further 19.6 per cent increase in July 2024.

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Council's finance manager Judy Jordan said they were expecting to see more people finding it difficult to meet their payments.

"We do encourage people to get in touch with us sooner rather than later if they are experiencing difficulties in paying; we can arrange extended payment plans," Ms Jordan said.

Council staff are recommending a 4.1 per cent increase for waste service charges and a 7.5 per cent increase for water and sewer charges.

For a typical town user, this would see water, waste and sewer charges increase by around $135 a year in total.

Council blamed escalating construction costs in water and sewer departments where there are high volumes of capital cost projects, both current and planned.

Bega Valley Shire Council has one of the highest - if not the highest - sewer charges in NSW, currently at $1318. This is due to increase by $99 in July 2023. Council was asked how the increase could be justified given some of the charge relates to repaying a multi-million dollar loan to sewer the shire's villages.

But Ms Jordan said only a small proportion related to the loan costs.

She said plans to reduce sewer charges by about $200, which had been raised at council meetings, were still on the cards but were unlikely to happen until 2030.

Council expects to hear in mid May from IPART about the success or otherwise of its SRV over two years and has spoken openly about "a point of failure" should the SRV not be approved.

Director business and governance Iliada Bolton said council would became unsustainable in two year's time with a point of failure in financial year 2026.

Ms Bolton said if the SRV is approved, a further SRV would be needed in five year's time.

Council staff wanted a 90 per cent increase in general rates calling it the "ideal option" but Ms Bolton said the capacity to pay report to council influenced staff to recommend the 43 per cent option which councillors then decided to spread over two years.

The capacity to pay report, however, did not take into account any increases in waste, water and sewer charges.

Fees and charges for July 2023 to June 2024 will be discussed at the council meeting on Wednesday, April 19.

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Council staff are recommending that the proposed increases in fees and charges along with the draft Delivery Program 2022-25 and Operational Plan 2023-24 including Council's Budget and Revenue Policy be placed on public exhibition for 28 days.

If agreed the documents will be on council's website and at libraries from Thursday, April 20 and the public will be able to comment on them until May 17. Following public exhibition, a further report will be provided to the council meeting on June 14, 2023.

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