IPART Approves Special Rate Variation Application
Published on 11 May 2022
The Independent Pricing and Regulatory Tribunal (IPART) has approved Council’s application for a Permanent Special Rate Variation (SRV) increase of 35.95% over 2 years, applied across all rating categories. 15.7% in 2022-23 and 17.5% in 2023-24 (including the rate peg)
Approved Purpose of SRV:
Continue delivering existing service levels without a significant reduction
Manage a range of financial impacts (e.g. maintenance of grant-funded new assets and natural disasters)
Ensure long-term financial sustainability
On an average rates bill, where the annual rate component is $1000 this equates to an average annual increase of approximately $154 in year 1 and $180 in year 2.
The increase only applies to the General Rates component of your rates bill. Sewer and Waste charges are not affected.
Council has also committed to make internal savings and reduce the operational budget by $600,000 in 2022-23 and 2023-24, adding an extra $1.2M to the bottom line.
Council’s use of additional income:
Enhancing financial sustainability does not mean the extra income sits in Council’s bank account unused or as a slush fund.
It means utilising the extra income on an ongoing basis to deliver existing services to the community and ensure our facilities and infrastructure are properly maintained within a balanced budget.
What Happens Now?
- Council is not bound to apply the increases
- Council can decide how much of the special variation it will implement to improve its financial sustainability
- Council will spend the next month discussing the finer issues and reviewing the community feedback received on the draft IP&R plans and budget
- Council will decide the final budget for 2022-23 at its June Council Meeting which will include any rate increases.
- Council will continue considering the community’s desire for current and future levels of council services and assets
Click here to access IPART’s final report(PDF, 658KB)