Second half of rates hike approved as Bega Valley feels the pinch

For the average residential homeowner, it will mean an additional $17 a month added to your general rates bill.

At a meeting on Wednesday, June 26, Bega Valley Shire councillors adopted a suite of planning documents, including a permanent special rate variation of 19.6 per cent for the 2024-25 financial year.

The rates rise followed last financial year's 24 per cent hike in general rates.

The two-part increase was designed to result in an increase to council's revenue over the next 10 years similar to what would have been achieved with a one-off 43 per cent hit - a measure that did not sit well with ratepayers and some councillors alike.

Council had originally talked about a 90 per cent increase in general rates but looked at alternatives after a strong backlash by ratepayers in the shire.

Mayor Russell Fitzpatrick said the SRV will take effect from July 1, 2024, for all rateable properties in the shire.

The 19.6 per cent rates rise was inclusive of the rate peg, which for this year was set at 4.9 per cent.

Cr Fitzpatrick said even with the two SRV increases, council would not be able to remain financially sustainable, and other cost measures would be required.

"As part of the budget setting process for next financial year, council reviewed and updated its long term financial plan (LTFP) and strategic asset management plan," he said.

"The LTFP provides the blueprint for future delivery of works and services, with a background of long-term financial sustainability.

"As the LTFP outlines, even with the last year's SRV, council is not able to remain financially sustainable.

"Rising costs exceed our capacity to generate income and meet the needs of our community with service provision and asset maintenance."

Cr Fitzpatrick said this week's decision to approve the SRV "was once again very difficult, yet financially responsible".

"We have a responsibility to our community and future generations to remain financially viable," he said.

"Ratepayers are encouraged to assess the impact of the SRV on their respective properties by using the SRV calculator available on the council's website.

"We realise that cost of living pressures are significant at the moment and want to remind our ratepayers that we offer various hardship options and a concession program for pensioners."

The SRV increase applies only to the general rates portion of your annual bill - typically the top two lines on your rates notice.

For an average residential property with a land value of $200,000, the 19.6 per cent SRV will result in a general rates increase of $17.26 a month.

The average farmland value in the shire is around $740,000, which will see an increase of $34.17 a month.

For businesses on land valued around $350,000, the SRV will add $40.39 to the monthly bill.

Click here to download the Bega Valley Shire Council's rates calculator.

Water, waste and sewer charges are not included in the SRV calculations.

However, they do increase each year along with other council fees and charges.

"We have a 4.9 per cent increase in most fees and charges, and waste services and water and sewer service fees will increase to 6.9 per cent due to the volume of current and future capital projects and service requirements, balanced with a recognition of escalating construction costs," Cr Fitzpatrick said after Wednesday's decision.