Voice of Byron

The 7.5 per cent increase includes the rate peg.  It does not apply to water, waste, stormwater and sewer charges.

The final decision for the proposed increase will be made by IPART and announced in May 2017.

Should IPART grant approval, the new rates will come into effect from 1 July, 2017.

Mayor Simon Richardson said it was a hard decision to make.

“No Councillors felt any joy making this decision and we knew for some in our community, this is not a welcomed decision. Paying more for a service never is.”

“However, we cannot sit and watch our essential assets deteriorate even quicker.  We need to urgently reduce the infrastructure backlog.

“There is no argument that we have key assets, such as roads and bridges, which need the additional funding. Our communities have requested stronger investment for many years.

“With a strong focus on finances over the past four years Council has managed to secure one-off funding injections for transport infrastructure projects. But this is not sustainable.

“A rate rise was part of our Council Improvement Plan that was submitted to the state government back in 2015.

“We need to keep up, not fall further behind and whilst in the short term this may not be a popular decision, it will have significant outcomes for our future.

“In pursuing a level of approximately 5% over the rate peg, Council are trying to ensure we who live here do our bit too, whilst ensuring visitors share the cost burden as fairly and equitably as possible. 

“Within the local proportion, Council will review the distribution of the rating burden across the rating categories of residential, business and farmland with a mind to increase the share from business and supporting those with genuine financial hardship.” 

“From visitors, we are focused increasing the hourly pay parking fee from $3 to $4 in undertaking the review and Council will be looking closely at how the rates are distributed across the rating categories and aim to achieve a fairer outcome.

“To ensure we leave no revenue raising stone unturned, we will also establish a revenue exploration working party with community members to research, identify and advocate for other non resident based revenue causing opportunities,” Mayor Richardson said. 

A 7.5 per cent rate increase over four years is a cumulative increase of 33.5 per cent, or approximately 24% above the rate peg.  At the end of the four year period, the special rate variation increase would be built into the rate base and permanently retained.

The increase will raise an estimated additional $10.58 million over the four year period. Council will also borrow an additional $6 million over the same period to fund bridge upgrades.  The funding will be spent on roads, road and rural drainage, causeways, culverts footpaths, bridges, urban storm water, buildings, public amenities, parks and open spaces.

If successful with IPART, Council has committed to undertake a quarterly audit of the projects funded by the increase and report to the community.

Pensioners will continue to receive the rebate on the general, water, waste and sewer fixed charges.

Council also resolved to continue to actively campaign the state government for legislation to allow a bed tax to occur. Plus again lobby for a revision of the Financial Assistance Grants funding distribution formula so that the impact of tourists upon Council and its ratepayers is adequately recognised and compensated.

The Special Rate Variation application will be submitted by the 13 February. Interested people can review the application on line and make a submission to IPART by the 13 March.

IPART website:  https://www.ipart.nsw.gov.au/Home/Industries/Local-Government

Council resolution:

1.      Receive and note the submissions and feedback received from the community during ‘Phase 4 – Public exhibition of the IP&R documents’ during the Special Rate Variation Consultation & Engagement process, conducted over the period from 17 December 2016 to 18 January 2017.

2.      Notes that an application for a Special Rate Variation is a key strategy from its “Fit for the Future” Council Improvement Plan (CIP) adopted in June 2015.

3.      Adopts ‘Option 1’ – being a 7.5% compounding annual rate increase per year over a four year period commencing July 2017 to June 2021 as its preferred option for a Special Rate Variation.

4.      Subject to determination and incorporation of an SRV option as recommended in part 3 of the recommendation, Council adopt the revised Integrated Planning and Reporting documents as presented to Council on 15 December 2016 (#E2016/103981), (#E2016/100839) and (#E2016/103686).

5.      Lodge a Section 508A permanent Special Rate Variation application to the Independent Pricing and Regulatory Tribunal, for increases to the ordinary rate income  (general revenue) of 7.5% (including rate peg) in 2017/18, 7.5% (including rate peg) in 2018/19, 7.5% (including rate peg) in 2019/2020 and 7.5% (including rate peg) in 2020/21

6.      Continue to actively campaign for the state government to legislate to enable the Council to levy a bed tax and thus provide a source of revenue for infrastructure renewal funded by the growing number of tourists to the area.

7.       Continue to lobby the Office of Local Government and the NSW Grants Commission for a revision of the Financial Assistance Grants (FAGs) funding distribution formula so that the impact of tourists upon Council and its ratepayers is  adequately recognised and compensated for as a disability factor.

8.      Continue to closely monitor the IPART review of NSW council rating systems and advocate for an expansion of rating categories that would facilitate Holiday Let establishments being rated as or similar to Business.

9.       Establish a Byron Shire Revenue Exploration Working Party to work alongside staff to identify non-resident revenue sources and to report the outcomes of research at each community roundtable. 

10.     Write to the local Member, Tamara Smith, Ben Franklin MLC and Minister of Tourism, seeking an urgent meeting to discuss State Government potential for more targeted tourism support in the Byron Shire.

11.      Develop a SRV quarterly expenditure auditing and reporting profile linked to Council’s CIP in conjunction with Council’s auditors within 3 months of any SRV approval issued by the IPART.