A RATE rise option is part of the final options in the Port Stephens Council Integrated Planning and Reporting documents.

In the recent Council meeting on 13 September, Council discussed the draft documentation for the Planning and Reporting Documents, with a rate rise highly likely for the community.

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In June this year, Council adopted the ‘Our Funded Future Communication and Engagement Plan’ to commence the conversation with the community about Council’s financial position and explore a number of non-rate and rate increase options.

The Plan is currently up to Phase 2, which involves publicly exhibiting options within the Integrated Planning and Reporting documents and further discussing the community’s views on the narrowed down and preferred options.

Following a previous Council meeting, Cr Giacomo Arnott moved a motion to rename the engagement to ‘Rate Rise Options’ to ensure the purpose of the engagement is clear to the community.

The documents now include the following amendments regarding Special Rate Variation and financial stability of the Council:
● Base Scenario: 2.5 percent Rate cap and next steps toward reducing service delivery.
● Scenario 1: Special Rate Variation – Independent Recommendation: 10.5 percent for three years.
● Scenario 2: Special Rate Variation – Single Year: 26 percent for one year.
● Increase of fees and charges for the 2023 to 2024 financial year at five percent.
● Continue seeking grant funding.
● Continue investigations and community consultation of selling underperforming assets, with any profits to be placed in the Resilience Fund.

Tim Hazell, Port Stephens Council Financial Services Section Manager, said the key purpose for Council considering a Special Rate Variation is to be financially sustainable.

“It is unsustainable for the Council to operate year after year with budget shortfalls,” Mr Hazell said.

“The additional income raised by any approved Special Rate Variation would be used to repair the budget.

Mr Hazell says by eliminating the forecasted shortfalls that are associated with the rising costs, Council will be able to deliver the planned services to our community over the next ten years.

Council understands that it may be difficult for some of the community to pay for an increase in rates or fees and charges.

“Council is proposing additional affordability measures to ensure we have a range of initiatives in place to assist any members of our community experiencing hardship as a result of any potential rate rise,” Mr Hazell said.

The revised documents will be placed on public exhibition for a period of 28 days to invite submissions before a report is made to Council.

By Tara CAMPBELL