More people than not [89 per cent compared to 11pc] understand why Tamworth Regional Council is considering a Special Rate Variation (SRV) request to the independent regulator [IPART], according to a report to go to councillors on Tuesday night.
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The result is based on a survey, which attracted 872 responses, and was conducted as part of council's community consultation regarding its proposed 36.3pc rate increase over two years.
A key finding of the survey was that an overwhelming 97pc of respondents [853] were opposed to the planned increase, where just 3pc [29] indicated their support for the proposal.
Affordability [7.1pc], ongoing cost of living pressures [44.2pc] and "increasing financial hardship" were among the key reasons for the staunch opposition. But 100 per cent of those who responded said they understood that in the absence of a SRV council would have to pare back its "services, service levels and asset conditions".
"Many respondents expressed the view that council needs to refocus on its core responsibilities and essential service delivery, suggesting that discretionary services, programs and projects be reconsidered," the report's key findings read.
Approximately 18.8pc of respondents said council needed to achieve further operational efficiencies before asking ratepayers for more money.
There were suggestions council could make savings by reducing staff, reviewing staff remuneration, and improving its business processes.
Just over 7pc of respondents said the cumulative 36.3pc increase over two years was "excessive".
There were concerns raised about the communication process, suggesting council had not adequately consulted with the community.
And there was concern the money to come from the increase would not filter out to smaller outlying villages and communities where there was already a level of anger over existing service levels.
In "direct response" to some these concerns, mayor Russell Webb says council will consider an additional rebate for pensioners and those on income support when they debate whether or not to proceed with the application to IPART at next Tuesday's meeting, November 28, which is being held Tamworth Town Hall.
Cr Webb said the rebate would be $50 in addition to the State Government Funded existing rebate in the first year. It would increase to $100 in the second year, and continue ongoing.
"We appreciate the high level of public interest in the proposal and I want to thank all community members who took the opportunity to learn more about the proposal, attend one of the community information sessions and provide feedback," Cr Webb said.
"This will all form part of councillors' considerations next Tuesday night about whether to proceed with the application to IPART for a Special Rate Variation."
The report councillors will consider proposes a variation of 18.5pc from July 1, 2024 (including the forecast rate peg of 3.5 pc) and 15pc cent from July 1, 2025 (including the forecast rate peg of 2.5pc), as it was written before the IPART rate peg announcement on November 21.
The 4.9pc rate peg set for the Tamworth region for the 2024-25 financial year will not change the total rate revenue council expects to receive if it does decide to proceed with an application. It only means that the most Council would seek above the rate peg is 13.6pc for the next financial year.
"While we welcome the changes from IPART, we still need to address the budget situation our council faces as a result of many years of the old rate peg methodology, and to continue to deliver the services and projects our community has told us they want and need," Cr Webb said.
Councillors will have three options:
- increase by the rate peg only, a scenario the council says is unsustainable
- a single-year Special Variation (SV) of 30pc (inclusive of rate peg) which the report concludes may "shock" some ratepayers and "may affect many ratepayers' capacity to pay in the current climate and add undue pressure to their household budgets" and so is "not recommended";
- or a permanent cumulative increase of 36.3pc (inclusive of rate peg) which would "address council's financial needs" and because it would be implemented over two years and not one, "would reduce the shock to household budgets".
"As such Option 3 is the recommended option," the report concluded.
As part of the feedback process, a petition was also presented to council in opposition to the rate increase, signed by 1006 people, along with 114 letters, emails and inquiries.
The report, including a detailed review of the findings from the feedback, is available with the business papers on council's website.
If councillors votes to go ahead with a request for a rate increase, it will need to prepare an application for IPART by February 5, 2024.
The independent assessor will then invite public comment for a period of three weeks and a final decision will be released in May 2024.
