Council considers proposal for Special Rate Variation

2 August, 2024

Gunnedah Shire Council is planning for the future of the region, by considering the proposal of a Special Rate Variation (SRV) to maintain, and potentially enhance the services the community currently receives.

With initial community consultation on the SRV to be undertaken over the coming weeks, an SRV will allow Council to increase its general income above the rate peg, to provide the services and infrastructure desired by the community. SRVs can be either for a single year or over multiple years and can be permanent or temporary.

At Council’s ordinary meeting on 19 June 2024, Council endorsed the 2024/25 Operational Plan that included the action to begin consultation with the community about a potential SRV.

Gunnedah Shire Deputy Mayor Cr Rob Hooke believes the Special Rate Variation will allow Council to deliver a bright future for the region.

“The difficulty Council faces around financially sustaining existing services and maintaining infrastructure within the existing income levels is not unique to our region and is one that many Councils across NSW are facing at this time,” Cr Hooke said.

“Like other Councils, we have been negatively impacted over time by the rate peg not keeping up with actual cost increases, reduced levels of financial assistance, cost shifting from other levels of government and an expanding infrastructure base, which is needed to support our growing community.

“The proposed SRV will ensure the timely maintenance of essential infrastructure like roads, bridges, sporting fields, playgrounds, and community facilities which we use every day, and would allow Council to work towards the communities’ future aspirations.”

The primary reasons Gunnedah Shire Council is investigating an SRV include:

1. To maintain current services: Ensuring council can continue to provide the same level of services and infrastructure maintenance. 2. Improving services: Enhancing or expanding existing services or adding new services to meet the needs of our growing community. 3. Financial sustainability: Addressing budget shortfalls and ensuring the long-term financial health of the council.

The potential application will be for a permanent SRV of 38.88% over two years. This will be comprised of a 24% increase in the first year (2025/26) and a 12% increase in the second year (2026/27). Both years include an assumed rate peg of 5%.

The proposed SRV would only apply to the rates portion of the bill (usually listed as the first item on the bill e.g., “Residential Gunnedah”) and not the separately listed essential charges such as waste and water. Council will be engaging with the community over the coming weeks to gather feedback, share information and answer any questions around the proposed SRV. A series of drop-in sessions will be available for residents and ratepayers to attend, along with an online form for community members to provide feedback on Council’s website.

Council will hold the first of its planned community engagement sessions to discuss the proposed SRV at the Curlewis Community Hall next Monday, August 5, 2024 at 5:30PM.

Advise about other sessions will be made available on Council’s dedicated SRV website page at www.gunnedah.nsw.gov.au .

The SRV application process involves submitting a detailed proposal to the Independent Pricing and Regulatory Tribunal (IPART), outlining the reasons for the requested increase and how the additional revenue would be used. Community feedback is extremely valuable to the decision-making around the SRV, and it is important an application includes information direct from our community.

It is important that everyone understands that this a process to have the conversation regarding a potential SRV. Council will not make a final decision on an SRV application until later in the year, once the initial community consultation has been undertaken.

For FAQs, a handy rate calculator, or if you’re unable to attend one of the drop-in sessions and would like more information on the Special Rate Variation, visit Council’s website at: www.gunnedah.nsw.gov.au/index.php/council/the-future-of-gunnedah/proposed-special-rate-variation