IPART approve Bellingen Shire Council’s Special Rate Variation
Published on 19 June 2023
The Independent Pricing and Regulatory Tribunal (IPART) has approved Bellingen Shire Council’s application for a four-year permanent Special Rate Variation (SRV).
Council made the SRV application to IPART after financial modelling highlighted the impact that global inflationary pressures, such as elevated oil prices and supply chain issues, would have on its ability to deliver services at a level the community has come to expect.
The approval provides Council with the ability to increase its ordinary rates by 8% for the 2023/24 and 2024/25 financial years, followed by 6% in 2025/26 and 2026/27 – inclusive of the rate peg. The cumulative increase would amount to 31.06% over the four years.
Bellingen Shire Council Deputy Mayor Cr Jo Cook said Council will now consider whether to adopt the SRV at its June Ordinary Council Meeting on 28 June 2023.
“We recognise that a rate rise is never welcome news for the residents and businesses in our community,” Cr Cook said.
“The Special Rate Variation application is one measure that Council has looked at to address its financial challenges. Council has economised on many levels, just like we know that our ratepayers have, and despite our best efforts to become more financially sustainable, costs continue to rise faster than our income.
“It was important that in any SRV proposal we had the right balance between maintaining essential services and minimising the financial burden on our community members.
“The successful application made through the thorough IPART process shows that there is merit in the need for additional revenue, the community was aware of the need and extent of the rise, and that the impact on ratepayers is reasonable.
“I would also like to thank the many community members who shared their feedback with us during the comprehensive community engagement that was undertaken as part of this application.
“The Mayor, my fellow Councillors and I will now carefully consider whether to proceed with the approved Special Rate Variation during the upcoming June Ordinary Meeting.”
Bellingen Shire Council General Manager, Mark Griffioen, highlighted that if approved by Council, the additional funds would be used to continue delivering services at a level the community has come to expect.
“The decision to apply for an SRV was made after careful consideration and to ensure that Council is financially sustainable into the future,” Mr Griffioen said.
“We would not have made an application unless it was necessary, as we understand the impacts that rate increases can have for many of our community members.
“Should Council approve the implementation of the SRV, the additional funds will be used to continue delivering a quality level of service to our community and maintaining the $0.5 billion worth of assets we are responsible for.
“I would also like to remind ratepayers who may be experiencing financial hardship to reach out to Council to discuss your options. Council has measures such as the Financial Hardship Policy in place, which can assist ratepayers suffering genuine financial assistance.”