The Independent Pricing and Regulatory Tribunal (IPART) has confirmed that Tweed Shire Council applied for a Special Rate Variation (SRV) of 2.35 per cent, this will be on top of the general rates increase of 4 per cent rate rise (all councils will receive at rise from between 3.7–6.8 per cent depending on population) taking it to 6.35 per cent. However, Tweed Councillor Reece Byrnes has said he will not support the SRV application.
Cr Byrnes opposed
‘I’m always fighting for our community, and that is why I voted against the rate increase,’ Councillor Byrnes told The Echo.
When the decision was made to apply for the SRV in February Mayor Chris Cherry told the meeting that she was supporting the application to ensure to ‘keep the option of an SRV available to councillors while other saving measure alternatives had been considered’.
‘We have put the application in to allow the possibility of having a special rate variation (SRV) but will make the final decision (if IPART approve it) after we have considered all options,’ she told The Echo yesterday.
‘71 Councils did an SRV in NSW last year, we did not due to the flood impacts on the community. A further 28 have applied this year and many are seeking 25 – 40 pert cent increases, where we are seeking only 2.3 per cent increase.
‘The SRV, if adopted, would mean that we can continue to provide the same level of services next year that we do today, otherwise we will have to reduce services.
‘Everyone knows how much the cost of materials and construction have increased over the past 12 months but unfortunately the rating system has a 12 month lag, so this would be an attempt to stay at pace with costs. We will bring options to the community about what services we would have to reduce if we do not go ahead with the SRV and ask for their input.’
Community feedback
‘The Tribunal is required to balance the need for councils to maintain services and improve financial sustainability against the impact on the community,’ said IPART Chair Carmel Donnelly.
Community submissions are now open and can be made until 5 May 2023.
‘Community submissions on the councils’ applications are a core part of IPART’s assessment. We have already received over 1,600 submissions which is indicative of strong community sentiment on the proposed increases,’ said Ms Donnelly.’
Peter Newton, president of the Kingscliff Ratepayers and Progress Association Inc. (KRPA) told The Echo that a ‘major concern is the state government fees and charges which haven’t been indexed for some years meaning the cost of Council applying fees is greater than their income received.
‘We (KRPA) have called for an urgent review of these at State level in order that councils can generate income and reduce burden in ratepayers.’
Responding to KRPA Tweed General Manager Troy Green points out that ‘One of the needs for the SRV is because the State government has removed council’s ability to charge an Environmental Enforcement Levy. This has left a significant budget hole.’
He also highlighted that ‘Much of Council’s income is derived by fees and charges. However, many of these (the ones needed to increase) are regulated and have not been indexed for 22 years. Our developer contributions are also regulated and have not been indexed for 11 years.’
Tighten the belt
Councillor Byrnes has said that the council and councillors need to look closely at their expenditure and look at reducing unnecessary costs across the organisation as the burden of increased rates is unfair on the community.
‘I share the disappointment of the community in my fellow Councillors who voted for a rate increase. Times are really tough for locals in the Tweed and we should not be slugging residents with additional rates.
‘Let’s be clear, by raising rates we will put more pressure on the cost of living for locals, not less. That is why I will not support any move to raise our rates. We must tighten our own belt and look in house for better solutions, not ask residents to pay more. I will be moving a motion at our next Council meeting to do just that. I will be moving that a report be brought forward to analyse the costs to the ratepayer incurred by Councillors.
‘The report must focus on: Costs associated with Council vehicles used by the Mayor/Councillors, dinners and beverages by Councillors, costs incurred for flights to conferences by Councillors and costs incurred for accommodation at conferences by Councillors.’
Have your say
You can visit the IPART website here to provide community feedback.
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