The 13 councils looking to hike rates

Thirteen councils across NSW have applied to the Independent Pricing and Regulatory Tribunal (IPART) to increase their general revenue above the rate peg in 2019-20.

Across NSW, the total annual increase to the amount of income that a council can raise from certain rates and charges is limited by the rate peg, which is determined on an annual basis. IPART has set the rate peg for 2019-20 at 2.7 per cent, up from 2.3 per cent in 2018-19 primarily due to increases in labour, energy and construction costs.

Councils requiring additional revenue are able to apply to IPART for either permanent or temporary single year or multi-year increases above the rate peg, which are known as special variations.

Of the 13 councils that have applied this year, six are from metropolitan Sydney (Burwood, Hunters Hill, Ku-ring-gai, North Sydney, Randwick and Sutherland) and seven are from regional areas (Dungog, Kiama, Lithgow, Muswellbrook, Port Stephens, Richmond Valley and Tamworth).

The number of councils applying is the same as in 2018-19, and slightly up on the eight in 2017-18 and 12 in 2016-17.

IPART Chair Dr Paul Paterson said IPART will determine all of the 13 applications by mid-May and councils electing to apply the approved increases would be able to do so for the 2019-20 year.

Are you in one of the areas where the council is looking to lift rates above the standard rise? What do you think of the claim?

10 comments

Yes and the council are I am in is one of them -- they waste heaps on crap -- as well as having fireworks about 12 times a year -- maybe more --and had totally unsuitable trees --- spotted gum -- etc  planted on the footpaths in so many new estates -- which have torn up the footpaths and had to be removed -- even after many of us told the council they were the wrong trees and they would do this --- but some idiot out of Uni knew better -- and has cost us a bloody fortune!

Waste and non-commercial (high) wages seem to be the order of the day. They are invested with extraordinary powers and Councillors seldom appear to take long becoming imbued with the notion that their role is to use them.

I once, just once, lived in a Council area where councillors took pride in how little they could get rates down to. It was an area which evolved ingenious methods of doing all those things Councils do (like roads) in a way which minimised cost. Staff included a Shire Clerk, a typist/receptionist and one other who looked after all the services and outside works operations (admittedly an incredible dynamo of a person.) A town renown for its charm and heritage.

Now, nannies in State government, not realising that communities self-govern things like charm, heritage, appeal and convenience, ordered changes. A planning scheme, planners to manage it, heritage people to control the excess which never previously existed, consultants to accompany a myriad of applications to ensure compatibiity, observance of every code and standard which may be applied anywhere else regardless of local applicability or value and bodies to make offices look busy and to give outside works teams that traditional shovel-leaning flavour. Finally, a Council accountant to account for all the extra funds it needs to collect and dispense, not to mention the task of massaging all the applications for external government funding which they may as well have because everybody else does.

Yes it is 2019, we do have some much larger cities than we have ever had before, our population has multipled by 5 in the last century but it is also true that many administrative areas have not grown or not grown at a rate difficult for their people to come to terms with. This is part of a strong argument against amalgamation of Councils. Small communities do not suffer many of the pressures for administrative services larger ones may. Yet, they maintain their own standards, more and aspirations.

If distinct groups cannot be trusted to sort out their own day to day affairs, is democracy as we know it the right path? is it simply a mechanism for agregating real power into the hands of a few? Where that may be contrary to the needs, interests and wishes of the group we should ask ourselves whether this will eventually extinguish the ethos we have built and value.

North Sydney Council is applying to increase its annual rates by 7% a year for the next 4 years.  Yes 7% PER YEAR. 

This is the council that decided, without consultation with residents to introduce a fee to enter McMahons Point for the annual NYE fireworks last December 31st.  A couple of dollar you think to cover security and garbage removal?  NO $40 per adult and $20 per child; out-fecking-rageous.  Businesses and locals had NO say and, along with tens of thousands of Sydneysiders who normally go there for free, were overwhelmingly adversely impacted by our mayor's "let them eat cake" attitude.   

This is the mayor who last year travelled, with her daughter (who is also on the council in the family dynasty), to Melbourne to inspect swimming pools there at ratepayers expense. 

We once had a mayor who upon his election (by the residents, NOT the councillors), sold the mayoral Mercedes and purchased a community bus.  Those days are looooooong gone.  

'Serving your community' is no longer a calling, it's a job for the political class.

So darn right Waiting--  same as ALL Government jobs these day NOTHING about the people its all about lining their own pockets -- and IMO the fireworks should be STOPPED we have them here at least 12 times a year and it is beyond a joke

Be good to have a national database comparing all councils and their charges like the Choice magazine style of thing.  I remember many years ago that serving on council was an honorary role and unpaid like a volunteer typically by leading business people in the area.

From Lithgow City Council's website:

"At its meeting on 26 November, Lithgow City Council resolved to notify IPART of its intention to apply for a permanent increase, above the normal rate peg, in our general rate income to commence in 2019/20 This process is called a Special Rate Variation (SRV) application.

Council proposes to apply to retain the current SRV of 4.77%. Council also plans to request an additional one-off SRV of 4.23%. The total SRV application will be for a 9% increase in rates revenue (i.e. the current 4.77% SRV plus a new 4.23% SRV) plus the 2.7% rate peg (set by IPART for 2019/20) will also be added."

Of course, on top of all those increases there is the hidden creep of increased valuations which, for some reason, escape any restrictions by State Governments.

Councils are in the hands of developers and services are cut to the bone to meet staff expectations of bonusses to meet their frugal restriction of expenditure. Ha!

A friend of ours is waiting to retire into a retirement village, but this could take years as the plans to extend the retirement village is being held up by council red tape. we are told that the council involved is an absolutely bastard to get through or done. I wont mention which council it is, but I am sure a great number of councils would come under this catagory. 

A few years back the Wollongong mayor gave us 4 or 5 options, 1, put rates up by about 7% and close half a dozen libraries, then put a charge on swimming pools and increase parking charges, 2, was to put up rates by around 5% per year on top of the designated increase this was for 5 years and still close some libraries, 3, was to put up rates by around 9% per year for 3 years and not close any libraries, but I think there was an option to cancel the free bus that runs from the town centre to the Uni. 4, was to put up rates by around 12% per year ? years and this would enable council to maintain their current works program, the fifth option I can’t recall but it was something ridiculous to make the other options more palatable, the above figures might not be completely accurate but they are close from my recollections.

We have friends in Canberra who pay $31,000 a year for rates. Top that!

They are SFRs and don’t intend to move.

Seems crazy to pay that! 

Not many of us could even afford so much.

well I know I would NOT be unable to pay that much Paddington

Unfortunately we are overgoverned by the feds, state and the councils.

A lot of of the work is nothing but repetion with all 3 governing bodies wanting to get paid for it. Increasing their salaries with lurks and perks for them and all their departments.

Spoke to a retired ccouncil worker of 8 years duration ..does not have to pay rates, phone gas or electricity and yes gets a full salary pension which does not get included Centrelinks calculations so gets old age pension as well.

Agree 100% with Abby

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