Proposed Special Rate Variation Update
Published on 08 November 2022
Ratepayers still wanting to comment on Leeton Shire Council’s proposed Special Rate Variation have until 5pm on Wednesday 9 November to make a submission to Council, via Leeton Have Your Say, an email to council@leeton.nsw.gov.au or a letter addressed to the General Manager.
To date close to 900 submissions and a couple of petitions have been received and staff have commenced a review of the feedback ahead of an upcoming Councillor workshop on Wednesday night, 9 November. At that workshop, Councillors will discuss what they have heard from community with a view to suggesting what range of alternative options they would like the General Manager and staff to add to their report to Council’s November Ordinary Council Meeting (23 November 2022).
Commenting on the feedback so far, General Manager Jackie Kruger said while some residents comprehend the need for a SRV, the majority of residents are strongly against. While she understands and even expected that, Mrs Kruger is concerned that many responses are based on incorrect assumptions, for example, that Leeton Shire was declared Fit For The Future “forever”.
“When declared Fit For The Future in 2015, Council was only Fit for 5 years whereafter the operating result went into deficit, which is exactly where we have landed now. In 2016 Council reported to the community on its initial Improvement Plan to stay Fit For The Future but unfortunately ratepegging, the freezing of the financial assistance grant, increased compliance reporting and ongoing cost shifting has eroded our ability to remain financially sustainable in our general fund (which does not include water, sewer or waste services),” she said.
Mrs Kruger explained that keeping the general fund in black for business-as-usual was a bit like digging a hole at the beach where, as fast as you dig, the waves roll in and sand fills up the hole.
“Each year through its Delivery Program / Operational Plan and Annual Reports (all permanently available on Council’s website), the elected Council keeps the community fully informed about Council activities and the state of Council’s finances.
In 2016 Council proudly stated it had found $800K of savings towards the Fit For The Future Improvement Plan, but by 16/17 and 17/18 Council was lamenting miserable rate pegs of 1.8% and 1.5% respectively that did not reflect the true cost of doing business, with the ultimate insult coming in 21/22 when IPART announced a 0.7% rates increase for a year in which inflation was forecast to run at over 6%. Councils across NSW fought hard against the 0.7% and, in Leeton’s case, received approval for a modest increase to 1.8% but still sorely short of what is required.
"Throughout Council has also been very clear that the infrastructure backlog had yet to be addressed, which is now included in the SRV proposal".
Mrs Kruger said that keeping perspective is very important, reminding residents that Leeton Shire has great facilities, healthy cash reserves (totalling almost $50M) and extremely low debt, calling the Shire “the envy of many Councils”. She says independent surveys signal that by far the majority of residents are proud to call Leeton home and value the range of services offered that make Leeton Shire an attractive place to live, work, stay and play.
“While there was a regrettable decision with the waterslide and pool toys which is still being dealt with, we cannot lose sight of the fact that our residents now enjoy a wonderfully upgraded pool complex spec’d in response to extensive stakeholder and community engagement between 2015 and 2017, which included ensuring full disabled access and Leeton continuing to serve as the Western Riverina centre for regional swim carnivals. Initially the NSW Government declined our grant application and gave Griffith $10K towards a brand new outdoor, competition grade pool and sports complex. The Mayor at the time (Mayor Maytom) and I did extensive lobbying in parliament to convince the then Minister of Sport to award us $3M towards our upgrade too, which was successful and meant we didn’t have to borrow any funds to undertake the major works required for our 50 year old pool which had come to the end of its useful life.”
“It’s important that the community understands that that overall, the cost of the pool project – or the Roxy or the CBD – are not the causes of the SRV proposal which aims to increase income for Council’s general operating fund. It’s years and years of unrealistic rate-pegging, the cumulative impact of the freezing of the financial assistance grant for 3 years, additional compliance requirements and ongoing cost shifting from the NSW government that have effectively forced Council to consider a SRV,” said Mrs Kruger.
“Critically, we are not alone – this is the same story for nearly every Council outside of major metros in NSW. In 2020/21 sixty Councils posted deficits in their general fund operating results. In the last 3 years around 29 Councils applied to IPART for some form of SRV and there will be quite a number writing to IPART in December to signal their intent to do the same from 1 July 2023. I met a retired General Manager last week whose Council has successfully applied for 5 SRVs over the years to keep pace with the cost of delivering services. The reality is that ratepegging is that broken that the NSW Government has finally instructed IPART to review its methodology, with an issues paper released in September for comment.”