HAWKESBURY Council has laid out future planned work to the community, including costings, in the hope of convincing them to support a rate rise.
Council is hoping the community will support it as it pursues a Special Rate Variation (SRV) of about 30 per cent, but is making it clear it wants the community to make the call.
Hawkesbury ratepayers have been sent material from Council in their letterboxes, which outlines three ratings options Council could pursue.
The options were to ‘reduce, stabilise or improve’ – and the pros and cons of pursuing each.
The first – reduce – would see Council continue to only raise rates with ratepegging. The second - stabilise – would see a total rise of 22.9 per cent over three years. The third – improve – would see a total rise of 31.3 per cent over three years.
Council’s general manager Peter Conroy said Council had no preferred option.
The material says Council believes it needs an additional $5.1 million per year in rates revenue to maintain or improve its network of roads and other Council assets.
Council is holding a number of information sessions across the Hawkesbury, where it presents this information to people, and shows exact locations and plans for work across the Hawkesbury.
This work includes sealing gravel roads, refurbishment of new buildings and road improvements.
After consulting the community, Council will report back to councillors in late August or September to inform them of the community’s decision said Mr Conroy.
Why does Council need to raise rates?
Councils need money to maintain assets. Common things councils spend money on are sealing roads, installing kerbs and gutters, mowing lawns at parks and running services like libraries.
For example, Council’s 2017-18 operational plan lists where the money spent. The two biggest spending areas were waste management and roads, constituting about 60 per cent of the spend.
Since ratepegging was introduced, councils across NSW have only been able to raise their rates at the level set by the state government each year, unless they applied for a special variation.
In recent years, this has become a problem for Hawkesbury, because inflation has been higher than ratepegging.
What this means is that even though Council raises rates, the actual cost of providing services increases at a higher rate, meaning Council’s net position is worse off.
Some councils also generate revenue via other sources to varying degrees of success such as our Council’s Waste Water Treatment facilities and the Waste Management Facility, which are designed to generate revenue for Council.
What could your rates bill look like?
‘We’ve needed a rates increase for years’
In 2016, after passing the budget, Mayor Kim Ford told the Gazette that Council should have pursued a Special Variation Rate rise. The previous Council was looking at an SRV of about 30 per cent, but ultimately decided not to pursue it.
Mr Ford said Council had needed an SRV for a long time. “We've needed a rates increase for years and every time we tried to have one, whether I was mayor or not, everyone arcs up,” he said.
“It is just a fact of life. If you want Council to do things like get development applications processed in a timely fashion and have footpaths maintained then you need money.”
Mr Ford said he understood that people in the community baulked at rate rises, particularly if there was a perception of it being wasted, but said ultimately Hawkesbury Council was very frugal with its money. He said in his opinion, Council should pursue its SRV because it was the right thing to do for the community.
Talking to the people
A similar tune is emerging from Council. Mayor Mary Lyons-Buckett, general manager Peter Conroy and independent councillor Peter Reynolds have all said the community deserved to have a say, even if that meant the community said no to a rate rise.
Cr Reynolds said he was proud to be part of a Council that spoke to the people and that he would endorse the community’s view, regardless of which option it selected.
However, he warned that rate rises were needed if the community wanted to see better services.
“If the community says no, you can't get the money via a special rate variation, then we have to sit there and say we have to find the money somewhere else. We might have to sell something or cut a service somewhere else,” he said.
Mayor Lyons-Buckett said Council wanted ratepayers to make an informed decision.
“I understand people don't want to pay more but councils across the state and nation have mostly had to introduce SRVs to enable their works programs and upgrades of assets to be carried out,” she said.
“There are many responsibilities on councils and many examples of cost-shifting from other levels of government which put pressure on councils.”
Mr Conroy echoed the Mayor’s comments.
If you want to attend the remaining information sessions, they are at: Horrie Eley Memorial Hall (20/7 at 6pm); the Windsor Function Centre (26/7 at 6pm); North Richmond Community Centre (27/7 at 6.30pm); Pitt Town Anglican Church (31/7 at 6.30pm); Maraylya Hall (2/8 at 6pm); McMahons Park Community Centre (8/3 at 7.30pm); Hawkesbury Leisure and Learning Centre (10/8 at 6pm); and, St Albans School of Arts (12/8 at 11am). Sessions have already been held at Glossodia and Bligh Park.