Aim: To ensure that rates, charges and fees are applied in a fair and equitable manner.
Rates
Rates are the only tax that Councils levy and it is levied via state legislation. The rate revenue is insufficient for any Council to deliver essential services and a significant proportion of Council revenue comes from government grants (Federal and State).
It is a flawed system that needs significant overhaul, and it is an issue that the elected Councillors should be pursuing through State and Federal local Government Conferences.
The introduction of the special rate variation of 45.7% has had an adverse impact on many residents and businesses. The common response from the administration of this council has been that the increases are due to increased land values.
Land values are determined by the Valuer General, who provided the administration with the increased valuations with sufficient time to model the impact on residents and businesses. However, no modelling was undertaken and those who complained were allegedly told that there are always winners and losers. This is not good enough when the objective of the Statement of Revenue Policy is:
to ensure that rates are levied in a fair and equitable manner so as to provide sufficient funds to carry out the general services which benefit all the ratepayers of the area.
It should be a priority of all Councillors to ensure that the rate burden is applied in a fair and equitable manner.
If elected, we will:
Seek a formal review of the special rate variation and the impact on businesses and residences.
Explore potential subcategories both in residential and business categories inclusive of Airbnb properties.
Ensure appropriate consultation with the rural community prior to any changes being proposed.
Seek a formal review of services provided to each rating category
Fees and Charges
The technical report commissioned by Council in 2022 to review its rating structure found that fees and charges only form 6% of general revenue. Apparently much lower than the councils used for comparison: Mid – Western Regional Council, Muswellbrook and Singleton.
Without any internal review of the fees and charges it was determined that fees and charges should increase by $400,000 with an initial increase in 2023/24 of $100,000.
Council levies over 800 fees and charges for a variety of services. Some of the fees are set by state legislation but not all of these are mandatory but still applied. Others are for services such as water, sewerage, and waste management.
At the Council meeting of 30 January, I sought a governance review of the fees and charges that council levies – it was defeated. There are no business cases that can be tabled for the fees and charges levied. So, what is the basis for increasing the fees and charges on an annual basis?
Councillors need to ensure that all fees and charges are relevant and determine what level of cost recovery or subsidy should occurs. This can only occur if the fees and charges are reviewed through the Finance Committee. It won’t happen in one year, but it needs to be an ongoing process and the Administration needs to justify any proposed increases based on a firm understanding of the cost of providing the service.
If elected, we will:
Seek support for a motion to modify the role of the Finance Committee to review fees and charges on an ongoing basis.
Seek support to secure the development of business cases for the following key services: water, sewerage and waste.