Why has sewer levy increased this year?

Kempsey Shire Council

As Rates Notices hit inboxes and mailboxes, residents will see some increases to charges this year. A noticeable increase is in the sewer levy.

Rates Notices consists of different parts, including Council rates based on a property’s value, as well as charges for services like water, sewer, and the environment.

If residents have a sewer service, they’ll see that the cost has gone up by around 13% this year. Council understands this is a significant increase.

When planning budgets and providing services, Council works with three separate funds: the general fund, the water fund, and the sewer fund. These funds must be kept separate by law. Council rates go to the General Fund. Then put simply, the water levy covers the cost of delivering clean water to a property, while the sewer levy covers the cost of disposing of wastewater.

The increase in the sewer levy is due to a higher estimate for the essential sewer capital program planned for the next 10 years.

This program includes projects like the Central Kempsey and Stuarts Point Wastewater Treatment Plants. The total cost of the program is now estimated to be almost $250 million. To fund this, Council will need to borrow around $170 million, which may lead to further increases in sewer access fees in the future.

Council has secured some grant funding and will continue advocating to the State and Federal governments to help with these important projects. The aim is to minimise the need for borrowing and reduce the financial impact on ratepayers.

Council is investing heavily in getting the balance right to fund critical services and support the vibrant, connected towns and villages of the shire. This year’s annual budget represented a challenging trade-off between essential community works and terrible economic conditions.

Community surveys show there is an expectation Council should invest more in roads, bridges and transport followed by stormwater and drainage and this budget delivers on those expectations. However, these are projects that require multimillion dollar expenditure to make a difference.

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