Rate rise: Wollongong council to ask government to let it charge more

According to council papers tabled at Monday night's meeting, the change would boost the average rates payment of $1570 by almost $13.

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The Independent Pricing and Regulatory Tribunal is responsible for setting the maximum amount councils can raise rates - known as a rate peg.

For Wollongong, that rate peg for the coming financial year was set at 0.7 per cent, however council will now apply to the state government to allow it to raise rates by 1.8 per cent.

"Having managed through the past two devastating years that saw the threats of fire, flood, pandemic and more floods within our community, the new challenge for 2022-2023 is the rapidly escalating cost of delivering service that council will be faced with," council documents stated.

The "historically low" rate peg of 0.7 per cent was recognised by the state government as likely to place council budgets under strain.

To limit that the government is allowing councils to request a revised percentage increase that is in line with their published budgets.

Council's latest budget, adopted last year, factored in a 1.8 per cent increase for the coming financial year.

Councillors at Monday night's meeting passed the motion on this rate increase, calling for council to request the 1.8 per cent rate variation.

If it was successful, then there would be the chance for residents to have input in the debate on rate rises.

"Following this application council would present a revenue policy to the community for consultation and feedback with two rating and budget scenarios based on the proposed increase and the initial IPART rate peg," the papers stated.

"Council would then make its final decision on the rate of general Income increase for 2022-2023 at its June meeting."

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