Times are tough so why did we increase rates?

Kempsey Shire Council

The 2% rate increase was carefully considered by Councillors at the 28 June meeting before it was approved.

These are tough times. Inflation is high. Interest rates are rocketing. The economy is uncertain. The recent census results gave proof that renters in our shire have faced big increases in the last 4 years.

No one is pretending that anyone is doing it easy now. The trouble is the same factors are impacting organisations as well. Businesses and governments must pay higher prices for supplies and services.

Local government can only increase rates and some charges to cover increased costs, and these are largely controlled by the State Government.

Last December the Independent Pricing and Regulatory Tribunal (IPART) shocked councils across New South Wales with the announcement that Councils would be allowed a rate increase for this financial year of just 0.7%. This was the lowest rate peg in over 20 years. It did not adequately consider things like inflation, other increases to cost of materials, staff award wage increases and increased demand for Council services due to natural disasters.

According to the Australian Bureau of Statistics, CPI rose 2.1 per cent in the three months up to March this year alone, and 5.1 per cent annually.

Following outcry from Councils across the state, IPART opened applications for a special variation to that 0.7% figure. 86 out of the 128 Councils in NSW applied for a special increase. These Councils were granted increases of up to 2.5%, the maximum permitted.

We applied for an increase of 2%. We did so to generate an extra $266,000 to avoid having to reduce services or the works program for the coming financial year.

Council has also made cuts and introduced cost efficiencies as part of an ongoing years-long project to reduce our deficit. Ultimately though, even the basic needs of our community like roads, rubbish and parks, are a huge undertaking that stretch our resources very thin.

This increase will have an average impact of less than $20 per year, per ratepayer. This was carefully considered by Councillors at the 28 June meeting before it was approved.

Please know that we have spread the increase as fairly as we can, and I thank each ratepayer for doing their bit to help our community.

Mayor Leo Hauville

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