What’s happening with rates?

Published on 30 May 2022

Woman looking at finance info

Have your say on Integrated Planning & Reporting today!

To assist the community in understanding our draft Integrated Planning & Reporting documentation, we’re providing information and insights into the key points we need your feedback on. Rates and a potential rate variation have been a common topic of discussion in recent months, but an increase is only one of the options you can tell us you want our Council to pursue.

The consultation is open for feedback until Monday 6 June 2022. These plans and financial documents will shape our region and Council’s future for years to come, so please have your say today.

What is a Special Rate Variation (SRV)?

A Special Rate Variation allows Councils to increase rates above the rate peg increase determined each year by the Independent Pricing and Regulatory Tribunal (IPART).

Applications for Special Rate Variations must be submitted to the Independent Pricing

and Regulatory Tribunal (IPART) for assessment.

Councils can apply for two types of Special Rate Variation:

  1. An increase in general income in a single year (i.e. a ‘one-off’ variation)
  2. An increase in general income in more than one year (i.e. between 2 and 7 years)

What is the process?

  • 9 May – 6 June consultation is undertaken with the community
  • 23 June - All consultation is considered by Council and a decision is made.

    If Council decides not to go ahead the status quo remains. If Council resolves to apply for a SRV the following then occurs:

  • November 2022 - A notice of intention is submitted to IPART
  • February 2023 - Council applies to IPART for a special variation
  • February 2023 - Further community consultation is undertaken
  • May 2023 - A final decision is made by IPART and Council is notified
  • June 2023 – Council needs to resolve to set the rates at an amount no higher than any approved increase

 

What has Council been doing to improve its financial position and reduce the burden on ratepayers?

 Council has reduced costs by $5million per annum over the last three years, including by:

  • Cutting management costs $700,000
  • Reducing staffing costs $2million
  • Reducing photocopying costs $200,000
  • Increased focus on allocating costs to grant funded programs
  • Reduction on building maintenance costs $700,000


    Who makes the decision about whether a Special Rate Variation is approved?

    The Independent Pricing and Regulatory Tribunal (IPART) makes the final decision on whether a proposed Special Rate Variation is approved, partially approved or rejected. This decision is final and IPART will not reassess an application after it has made its decision.

    What are the rate options being considered?

    OPTION 1 | $4.20* weekly increase after ten years following only the state government’s yearly rate peg increase, by reducing services:

  • Biosecurity services reduced by 40%
  • Building/Development assessments – minimum regulatory role only. No assistance
  • Rangers during work week only and only responding to extreme issues on weekends
  • Minimal response to illegal dumping
  • Close some community facilities
  • Reduced library operating days
  • Reduce park areas by 30%
  • Reduce front counter services – available at Cooma office only
  • Cease any economic development or tourism/events activities and support
  • Minimal strategic planning to occur
  • Move out of residential aged care services


    OPTION 2 | $16* weekly increase after eight years, inclusive of the state government’s yearly rate peg increase, 
    by investing in current services

  • Roads: - Fund road reseal every 15 years on average
    • Fund gravel resheeting every eight years on average
    • Gravel maintenance grade every year on average.
  • Introduce program to renew buildings over time
  • Increase maintenance funding to appropriate level
  • Move out of residential aged care services


    OPTION 3 | $7.70* weekly increase after eight years, inclusive of the state government’s yearly rate peg increase, by 
    reducing services partially

  • Building/Development assessments – minimum regulatory role only. No assistance.
  • Rangers during work week only and only responding to extreme issues on weekends
  • Close some community facilities
  • Reduce front counter services – available at Cooma office only
  • Not undertake any tourism activities
  • Move out of residential aged care services


    OPTION 4 | $9.40* weekly increase – a one-off single year increase – inclusive of the state government’s yearly rate peg increase, 
    by a small service reduction

  • Not undertake any tourism activities
  • Move out of residential aged care services

To have your say and tell us which of the above scenarios you want to see, head to www.yoursaysnowymonaro.com.au today.

Consultation ends Monday 6 June 2022.