Can you afford a rate rise?
Amidst calls by Tony Abbott for locals to boycott the proposed rate rise, regulator IPART has started its review of Northern Beaches Council’s 39.6% special rate variation (SRV) application.
Council has applied to IPART for a 39.6% rate rise over three years, despite 51% of respondents to a community survey opting for a yearly ‘peg’ increase of only 10.7%.
On 25 February, IPART opened a public consultation on the SRV, providing locals another opportunity to have their say on the increase, which if approved would start in July. IPART is also considering a public hearing after the written submissions have been assessed, due to the ‘level of community interest.’
Local Government Minister Ron Hoenig called the proposed SRV ‘excessive and ridiculous’ on ABC Sydney on 12 February. Speaking about the fact council is asking for a 39.6% increase when the community asked for 10.7%, Mr Hoenig said: “IPART will do due diligence. They’ll look at council’s expenditure because councils have to look at their own books before asking for more money from rate payers.”
Using IPART guidelines, the regulator’s panel of three will look at whether the SRV would have a ‘reasonable impact’ on ratepayers, and the application must ‘demonstrate the council’s consideration of the community’s capacity and willingness to pay rates.’ It must also ‘establish that the proposed rate increases are affordable having regard to the community’s capacity to pay.’
On 18 February, councillors passed a motion moved by Councillor Vincent De Luca by 10-4 which calls for private schools (currently exempt) to pay council rates. In another rowdy meeting, with cheers and boos from the gallery – not to mention more calls between councillors to ‘shut up’ – council agreed to write to Mr Hoenig to request legislative changes to avoid duplicating roles, reduce levies and cost shifting, and implement salary caps for senior council executives.
No response has yet been received. Mayor Sue Heins confirmed that some councillors had been subject to ‘threats and intimidation’ over the rate rises.
Local Government NSW President Phyllis Miller told PL that such threats were ‘illegal.’ ‘Councillors are not making these decisions lightly. We care deeply about our communities and work hard to provide the infrastructure and services they need.”
Pittwater MP Jacqui Scruby asked Minister Hoenig for a performance audit of council; however, he said there were insufficient grounds for an inquiry.
Have your on the SRV by 24 March: ipart.nsw.gov.au