The financial burden of potentially paying $70 more in our rates is being treated as hardly taxing, however using that money to bail Council out of its financial mismanagement is another matter altogether.
That appears to be the consensus of many residents in response to Port Macquarie-Hastings Council’s (MPHC) submission to the Independent Pricing and Regulatory Tribunal (IPART) for a special rate variation that would see the average ratepayer’s rates rise by $70 next financial year.
Council has said it needs the funds to address its $110 million infrastructure backlog, however will also use the monies to improve roads.
But not everyone is convinced.
Shelly Beach residents and ratepayers Sean and Karen Faichney said they would not be persuaded that Council’s ability to address infrastructure had bottlenecked, but rather, it needed bailing out after financial blowouts on projects such as the $50-plus million Glasshouse arts’ hub fiasco.
The parents of two, Alea, 3, and Josh, 14, said in effect an increase of $70 a year was insignificant.
But the independent IT consultant and St Paul’s High School library assistant and The Learning Ladder sales manager said it was the principle of the matter that was the crux.
“It leaves a sour taste in your mouth the way Council has handled its existing funds,” Sean said.
But when it comes to improving roads and other facilities, he’d happily pitch in.
“Obviously that’s what rates are supposed to do and if it comes down to not getting things seen to if there is no rate increase, then I’d rather pay the money.”
Retiree and Lighthouse Beach home owner Gwen Wood could not agree more.
“I think it’s an important aspect to our town to have good roads,” she said.
“You only have to see the traffic build up between Bonny Hills and Lighthouse every morning to know that.
“If Council spends the money where they say they will, then fine, but if it swallows it up, what’s the benefit to us?”
Council Administrator Garry Payne said the decision to seek approval for the rise was not made lightly and involved thorough consideration of all the community engagement that had gone into the development of the suite of Integrated Planning and Reporting documents.
“The exhibition period from December to February this year was the final piece in three years’ worth of consultation work. Earlier work had established the community’s priorities; and online budgeting tools and surveys had raised the issue of the financial implications of delivering on increased service level expectations.
“The four financial scenarios were a key part of this latest exhibition period and I was very clear in December when the draft Delivery Program and Operational Plan went on exhibition that we were at a crossroads and seeking community input into balancing service expectations with the community’s preparedness to pay,” said Mr Payne.
During the three month exhibition period, Council ran a series of community information sessions, a specific workshop for Community Reference Group members and conducted an advertising and editorial campaign to promote the public exhibition.
A total of 28 submissions on the draft suite of documents were received, with 11 of these not nominating a preferred rating scenario.
“There was support for this rate scenario in the submissions received and a number of submissions supported an even greater rate rise to more quickly address our transport infrastructure issues,” Mr Payne said.
Further submissions acknowledged that an increase in rates isn’t preferred but is the inevitable solution to ensuring the viability of our infrastructure and staving off more dramatic expenses down the track.
“Throughout the consultation activities, the draft Operational Plan for next financial year was commended and supported and indeed many people wanted additional works added to the program. The rate structure I’ve supported will allow this Operational Plan to be delivered.
“The bottom line is that, if we are unsuccessful in the application for a Special Rate Variation, we can only afford to complete about one-third of the work currently listed in the Planning and Providing Our Infrastructure section of the plan.
“It’s that reality and an assessment of the community’s capacity to pay that has led me to the decision to apply for a Special Rate Variation,” concluded Mr Payne.
The Hastings Construction Industry Association (HCIA), which represents the local construction and development industry, supports the rate variation on the basis that the following key issues were given priority by PMHC, said president Tony Thorne:
* Sufficient and suitable resources are applied to ensure the delivery of the infrastructure projects;
* Appointment of an Infrastructure Coordinator and suitably qualified and experienced support staff whose only role is to ensure the delivery of the infrastructure projects, reporting directly to the Council; and
* Transparent and regular reporting to Council meetings to provide the community and groups such as the HCIA the opportunity to review ongoing progress on the delivery of the infrastructure projects.
“The proposed Rate Variation will place an obligation on PMHC to demonstrate that ratepayers are getting value for their money from the increased rates,” Mr Thorne said.
“The HCIA believe this will require particular focus to be placed on the infrastructure projects in addition to Council’s normal management of its everyday functions.
“The HCIA made a submission on the proposed rate variation after attending briefings by the Administrator and Council staff on the Community Strategic Plan, Resourcing Strategy, Delivery Program and Operational Plan,” Mr Thorne said.
“The HCIA supported Rate Variation Scenario 4 which involved a higher rate rise than that ultimately adopted by PMHC for its submission to IPART,” he said.
“We also support the adopted rate Variation Scenario 3 as it is clear that, the longer work on essential infrastructure projects is delayed, the less likely Council will ever be able to afford to deliver them.”
A decision on Council’s application for a Special Rate Variation is not expected until mid-June.
The full IPART application document will be available on Council’s website by April 1.
