A 45.3 per cent cumulative rate rise over four years is now locked in for the Wingecarribee Shire.
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The first increase will come into effect from July this year.
The announcement came yesterday as part of the Independent Pricing and Regulatory Tribunal (IPART) determinations on NSW council applications for Special Rate Variations (SRV).
Wingecarribee Shire Council was one of 12 councils across NSW to apply for an SRV as part of the NSW Government Fit for the Future local government reform program.
IPART Chairman Peter Boxall said Wingecarribee Shire Council had its application approved as it was able to meet the approval criteria by "demonstrating a need for the additional revenue, that they had appropriately engaged with the community about the proposed rate increases, and that they are taking steps to improve productivity and contain costs".
Council placed three rate increase scenarios on public exhibition for community consultation, which included a 'deteriorate' option of a 2.5 per cent rate peg increase, a 'maintain' option that proposed a special rate variation of 7.75 per cent each year for three years followed by 10.65 per cent in the final year, and the final option 'improve', with a special rate variation of 9.25 per cent each year for three years and 12.15 per cent in the fourth year.
After much discussion on the matter councillors chose to submit the 'improve' option.
Council's final SRV application to IPART proposed an 8.55 per cent increase in the first year followed by a 9.25 per cent increase in years two and three and a 12.15 per cent increase in the final year, resulting in a total 45.3 per cent culmulative rate rise over four years.
The increase for the year 2019-2020 includes making permanent a special variation for the environmental levy which is already being paid by ratepayers.
The SRV increase will provide additional funding to council to support the ongoing maintenance of community assets such as roads, footpaths and drains.
Mr Boxall said special variations were designed to give councils the flexibility to generate additional income above the rate peg to meet their specific needs, with an independent assessment process ot approve the increase.
"In making these assessments, we have considered each council's long term financial plan, taking into account the financial need of the council and the capacity and willingness of ratepayers to pay the requested increase," he said.
Mr Boxall said although some community members held different views about the increases, the council had demonstrated they had provided for community input and considered the impact on ratepayers.
When councillors supported the 'improve' option in February this year Mayor Larry Whipper said an SRV was necessary to "retain our unique Southern Highlands identity and ensure our assets are maintained in line with our community's expectations".
Now that the submission has been approved by IPART, Cr Whipper further endorsed the benefits of the SRV approval for the "long term sustainability" of Wingecarribee Shire as a "standalone local government area".
He said it would enable council to increase infrastructure such as roads, parks and community facilities to a standard expected by ratepayers and residents.
"During the extensive community engagement program undertaken prior to council submitting its SRV application, people overwhelmingly said they expected better infrastructure and were willing to pay for it," Cr Whipper said.
"I thank the shire's residents for their support and patience during this SRV application process.
"I assure them these extra funds will be channeled to key infrastructure and environmental projects that will ensure our Shire is an even better place to live," he said.
