Council Begins Community Engagement on Special Rate Variation Proposal

Published on 16 October 2023

Snowy Valleys Council has announced a series of community pop-up dates to discuss the long-term financial sustainability of the organisation, which involves options for a Special Rate Variation.

Interim General Manager Steven Pinnuck said Council is investigating applying for a Special Rate Variation (SRV) to achieve financial sustainability.

“Unfortunately, the SRV approved in 2022 has not been sufficient to achieve Council’s financial sustainability so we are exploring opportunities to implement a new SRV to make sure services can be delivered into the future,” Mr Pinnuck explained.

“Council’s cost pressures have been exacerbated by the high inflation environment and an increasingly competitive employment market that has occurred post-COVID-19, as well as cost shifting from previously State Government funded services that are now at Council’s cost (like the recently announced increase to the Emergency Service Levy), a continuation of rate pegging, and the normal increased service level expectations.

“Current modeling in Council’s 2023-2033 Long Term Financial Plan shows that further rate increases are needed to enable Council to maintain current service levels, adequately fund ongoing asset maintenance, reduce Council’s reliance on external grant funding for asset renewals, and ensure Council’s financial sustainability.”

There are two permanent SRV options explored in the Long Term Financial Plan, option one would see 18% increases over two consecutive years (39.24% cumulative) while option two would see 12.5% increases over three consecutive years (42.38% cumulated).

Mr Pinnuck said both SRV options result in a balanced budget which will allow Council to increase its asset replacement reserves ensuring current expected services can be delivered into the future.

“In the long-term it allows Council to invest responsibly in infrastructure and avoids burdening future generations with excessive costs or excessive reductions to services,” he said.

Community members can learn more about the council’s sustainability measures and the two SRV options at Community Pop-ups happening around the region in late October.

Further information is also available from Council’s website including a quick survey where people can have their say on which SRV option council should proceed with. www.svc.nsw.gov.au/srv

COMMUNITY INFORMATION POP-UPS

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