Special Rate Variation Decision Draws Closer

Face-to-face community consultation between Griffith City Council and residents has come to an end regarding the special rate variation application proposal, but the more constructive feedback Council receives the better equipped they will be to make an informed decision about whether or not to apply to the Independent Pricing and Regulatory Tribunal (IPART) for the proposed Special Ration Variation (RSV).

That is why Council has strongly urged ratepayers to continue giving feedback online until 4 pm Thursday, August 31.

The community has actively participated in the consultative process, providing valuable feedback during the process to date.

Various meetings were held across the Local Government Area (LGA), including COG meetings at Yoogali and Hanwood and five Council cafes and information sessions at different locations.

Council representatives also delivered individual presentations fostering engagement with not-for-profit community organisations and business leaders.

The proposed RSV aims to increase ordinary rates by 10.5 per cent (includnig the assumed 3 per cent rate peg) annually for three consecutive years, starting from 2024/25 to 2026/27 ( cumulative total increase of 34.9 per cent).

This increased revenue would be permanently retained in Council’s rate base.

Council’s website offers a SRV estimator to help ratepayers understand the potential impact of the proposed rate rise.

More than 100 submissions have been received so far, and Council endavours to respond to each question on the SRV page.

Many questions and a significant proportion of community comments submitted in general have been concerned with the cost of living.

Residents can submit their views via email to admin@griffith.nsw.gov.au, by mail to PO Box 485 Griffith, 2680, or through an online submission.

Following the comprehensive community consultation, Council will consider a further report in October 2023, during which a final decision will be made on whether to apply to IPART for the Special Rate Variation.

If IPART approves the application, the first stage of the increase will take effect in July 2024.

Council’s response to the cost of living and other frequently asked questions include:

Q. With the cost of living going up so much now, how can we be expected to manage this increase?

The proposed SRV is not a decision taken lightly. Council recognises the delicate balance between providing essential services, maintaining infrastructure, and ensuring affordability for our residents.

Council offers the Pensioner Rebate Scheme, which financially supports this important group in our community. Council also has a Hardship Policy to accommodate the special needs of those unable to pay their rates in full on time. The increase is proposed to come into effect in July 2024 and staged over a three-year period, recognising the impact and in an effort to minimise this impact as much as possible whilst ensuring Council’s financial sustainability.

Q. What is Council doing to remediate the situation?

Regardless of whether Council resolves to apply for an SRV, Council's Senior Management Team is committed to finding $1 million in savings each year starting from 2024/25.

This will be achieved by identifying operational efficiencies. Councillors are also being encouraged to identify possible alternate revenue sources and potential saving opportunities.

Q. What do land valuations have to do with my rates?

The NSW Valuer General’s Office is responsible for the valuation of all rateable land in NSW and is revalued every three (3) years.

Rateable land within the Griffith LGA was revalued during 2022 and these values were provided to Council. Council calculates rates using the land value determined for your property plus a base amount.

The land revaluation process does not provide any additional rate revenue for Council. The total increase in rate revenue to Council is capped on an annual basis by the Independent Pricing and Regulatory Tribunal (IPART.

For the 2023/24 year the rate cap increase is 3.7 per cent above 2022/23 level (ie approx. $700,000).

Changes to land values will impact the amount of rates payable for individual properties but the total increase in rate income received by Council for the year does not exceed the rate cap as determined by IPART.

Whilst we acknowledge that some individual assessments have moved by much greater than the 3.7% rate pegging figure, many have also increased by less and in fact some assessments have reduced in line with new land valuations.

Q. What is the alternative to the proposed rate increases?

Without a Special Rate Variation, Council would need to consider reducing the levels of services provided to the community to save costs.

Examples of services that may be impacted include the Griffith Regional Aquatic Leisure Centre, Griffith Regional Theatre, Pioneer Park Museum, Griffith Regional Sports Centre and Griffith City Library. In addition, service levels will be reduced.

Some examples of these include our roads, parks and gardens, strategic planning and storm water drainage.

• Topics:

• Local Council
• Community Feedback
• Cost Of Living