MidCoast Council will today (April 27) consider applying for a 2.25 per cent special rate variation (SRV) for the 2022-23 financial year which, if approved by the Independent Pricing and Regulatory Tribunal (IPART), would generate almost $2 million extra in rates in the coming financial year.
A report to council's general meeting this afternoon (Wednesday) says the additional special variation is required for council to fund its services and asset obligations for 2022-23. This is in light of the lower than expected rate peg announced by IPART in late 2021.
The rate peg was 0.7 per cent with a population factor for MidCoast Council of 0.2 per cent, which provided a total rate peg for 2022-23 of 0.9 per cent.
"This figure was significantly lower than expectations and sector wide lobbying occurred, given the impact that this low rate peg would have on councils' ability to deliver services to their communities, manage asset responsibilities and ensure long term financial sustainability," MidCoast Council's finance manager Phil Brennan, stated in his report.
"The Office of Local Government and IPART have recognised that due to the delayed council elections (due to COVID) and the determination of the 2022-2023 rate peg at a lower rate than councils had forecast, councils may not have had sufficient time to prepare special variation applications within the normal timeframe.
"This may result in some councils not having sufficient funds to pay for required infrastructure and services.
"As such the NSW Government and IPART have agreed to a one-off additional Special Variation (ASV) round for the 2022-2023 financial year only."
Mr Brennan's report states that council has considered the impact the additional rate variation will have on ratepayers and "considers that it is reasonable."
Council's meeting starts at 2pm and can be viewed via audio-visual link.
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