Kiama Council will seek a Special Rate Variation (SRV) from the NSW Government of 6 per cent for three successive years, starting in 2018/19.
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After 2020/21 the variation will be permanently retained in the rate base.
General Manager Michael Forsyth said the SRV was part of the council’s Long Term Financial Plan, and the Government’s Fit for the Future requirements.
“Whilst council advertised and adopted the Long Term Financial Plan in June, we want to make sure the community understands why we need this SRV and what it means for them,” Mr Forsyth said.
“We estimate, based on average land values, residential ratepayers will pay between $1.63 and $5.19 a week more.
“To remain Fit for the Future, and an independent municipality, council needs to ensure it has enough money to operate and provide services to its community.
“In particular, this SRV will allow us to maintain and renew the significant amount of infrastructure Council manages for the community.”
Mr Forsyth said, except for water and sewers, Kiama provided more infrastructure per ratepayer than any other council in the region.
“Every time we build a new asset such as a library or sportsground, there is a significant cost to Council of maintaining that library or sportsground for many, many years.”
“If we build a new library for $3 million that has a life of 40 years, that will cost council $75,000 a year to maintain.”
Using Kiama’s average land value of $418,274, council compared rates with other local government regions. The results were as follows for 2017/18:
- Wingecarribee Shire – $1614.08
- Wollongong City – $1765.16
- Shellharbour City – $1844.49
- Shoalhaven City – $1486.99
- Kiama Municipality – $1412.65
By 2020/21, the rates will be as follows:
- Wingecarribee Shire – $2027.07
- Wollongong City – $1900.88
- Shellharbour City – $1986.32
- Shoalhaven City – $1721.37
- Kiama Municipality – $1682.49
Mr Forsyth said while an SRV was necessary, council has ensured the impact on ratepayers would be as light as possible.
“Council is only investing in new assets after first funding asset renewal or maintenance and only then are funds to be directed to new assets,” he said.
“We have also provided an additional pensioner rebate of $10, which will increase over the three years of the SRV.
“Council has also limited increases in Domestic Waste Management Charges (DWM) to 2.5 per cent per annum, thanks to the strong community support for the OK Organics service.
“Our ratepayers can be assured the SRV for Kiama Municipality is at the lower end of the scale for councils in the region in recent years.”
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