KEMPSEY Shire Council (KSC) will submit an application to the Independent Pricing and Regulatory Tribunal (IPART) to increase property rates by a cumulative 42.7 percent over three years to ‘address financial sustainability and a forecast $79 million deficit over the next ten years’.

The deficit, according to KSC, is largely due to the cost of maintaining essential community infrastructure.

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A KSC Community Forum, held on Monday 20 November 2023, preceded the Ordinary Meeting on Tuesday, with the predominant discussions centred on the proposed application for a Special Rate Variation (SRV).

As a sizable crowd was expected for Monday’s forum, the meeting was relocated to Kempsey Cinemas and was live-streamed via the KSC YouTube channel, with Mayor Leo Hauville welcoming all to the event.

Strong public interest in Council’s decision whether to apply for a rate increase prompted twelve speakers, representing a variety of community organisations, to address KSC councillors and managers.

Needless to say, most in the gallery were against the proposal, which was borne out by the results of community led petitions.

One speaker, Genevieve Lovell, offered a series of informative slides compiled by members of the Stuarts Point and District Community Organisation (SPaDCO), noting ten scenarios relating to local residents’ capacity to meet the burden of rate increases.

“It’s time to think differently, time to turn local council governance on its head and disrupt and innovate,” Genevieve said.

During Tuesday’s meeting, Councillors debated the pros and cons of the outcomes, noting that not applying to IPART may result in the appointment of an Administrator, thus replacing local councillors with an entity unfamiliar with local issues.

Councillor Author Bain queried all in attendance, “How do we balance the financial and community impacts for the future.”

Mayor Hauville asked the crowd to ponder the alternatives to a rate rise.

“What will the community be prepared to sacrifice? – Monthly garbage services? Loss of valuable staff? Reduced library hours? Sale of the airport? Reduction of roadworks and maintenance? Closure of Gladstone pool?

“Financial and asset data as well as the significant feedback in community surveys and submissions were considered before Councillors voted to proceed with an application.”

Eventually votes were tabled with all but one in favour of lodging the application, but most Councillors were reluctant in delivering an affirmative decision and called for increased support from State and Federal Government.

Stephen Mitchell, Kempsey Shire Council’s Director of Corporate and Commercial said, “If IPART does approve the application, then Councillors will decide in June 2024 by how much to increase the rates. In the meantime, Council staff will continue to search for viable cost savings and productivity improvements that could potentially reduce the rate increase, should it be implemented. Additionally, efforts will be directed towards advocating to government levels for improved and increased funding for the local government sector.”

At about 10am on Tuesday, IPART released the rate peg for NSW councils for 2024-25, announcing Kempsey Shire Council’s rate peg as 4.7 percent.

This means that if Council’s application to IPART is successful, the most Council would seek above the rate peg is 3.2 percent for next financial year.

The application to IPART will be submitted no later than 5 February 2024 and will be followed by an additional period of community engagement.

By Jen HETHERINGTON