A rates rise is inevitable if Council gets its way.
Port Macquarie-Hastings Council recommended at its Wednesday night meeting to apply to the Independent Pricing and Regulatory Tribunal (IPART) for a Special Rate Variation for the 2012/13 financial year.
Council proposes to continue the current 7.3 per cent special rate variation on a permanent basis with an additional 4.43 per cent to be in the rates base for a period of five (5) years only.
General Manager Tony Hayward said the report has been based on the results of Council’s community consultation conducted at the end of 2011 which involved more than 2000 people and community groups in discussion on the issue.
It also outlines the level of rate variation sought and the reasons behind the submission.
Mr Hayward said the information gathered during the intensive participation process has been analysed with the intent to produce a funding model which delivers on both the community’s service level priorities while reflecting the ratepayers’ capacity to pay.
Council’s current special rate variation of 7.3 per cent is due to expire on June 30.
The rate variation sought is based on the results of extensive community consultation and a survey conducted before Christmas. The survey results reflect what the community indicated was reasonable in order to meet service level expectations.
“The first part of the 2012/13 application to IPART is to have this rate variation permanently in Council’s rate base from July 1, 2012.
“Failing this, Council’s income will need to be reduced by $2.5 million and this will affect our capacity to continue the vital program of works on roads and parks maintenance,” Mr Hayward said.
“The second part of the application involves applying for a further 4.43 per cent for a period of five years only. This will result on average in a $50 per annum increase in rates and will provide Council with an additional $1.68 million per year over a five year period to assist in addressing Council’s backlog of infrastructure renewal in relation to its road network.
“At the end of five years, this additional revenue would be removed from Council’s annual rates income.”
