Special Rates Variation (SRV) Community Consultative Panel Update
The panel met last week to be given an in-depth appraisal as to the current financial position of the council. Unsurprisingly the main issues were the infrastructure backlog, the wooden bridges issue and the state of the roads.
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Acting General Manager, Shaun Chandler told the group that Dungog Shire Council had been found to be unfit during the original Fit For the Future process, which measured councils against seven benchmarks.
These benchmarks were to be met by 2020. Council has been given the opportunity to by reassessed on these seven benchmarks and, to be found fit, must be meeting or trending toward meeting these benchmarks by 2026-27.
Council must also be seen to be improving its operational effectiveness, and finding savings through efficiencies.
Change
What was obvious to all panel members was that changes need to be made to enable council to meet or trend toward meeting these benchmarks and improve our position.
Currently we do not meet six out of seven of the benchmarks. We are not spending what we need to on asset renewal, therefore maintenance costs are higher than they would be if we could spend more on asset renewal. The current rate peg is 1.5%, and yet operational costs such as materials, emergency services and insurance are rising at much higher rates, and electricity costs have risen nearly 20% in this financial year.
Shaun outlined the steps Council and Councillors are making to improve our position, to compliment a special rates variation.
These include resource sharing, joint contract negotiations and regional procurement through our association with Hunter Councils, actively pursuing grant revenue, extending the life of our landfill through our recycling efforts, energy efficiency and discussions with neighbouring councils about strategic alliances to grow our capacity.
Council intends to apply for a percentage rate rise per year for seven years.
This means that the fixes to our infrastructure will take longer, and it will be a slower process to get ourselves in a better position. However it will also mean that the impost to rate-payers will be more sustainable.
Greg from Morrison and Low, who is assisting Council with its ten year financial plan, showed us a couple of scenarios with various levels of rates rises.
These scenarios show us either making the benchmarks or trending towards them by 2026-27.
Please note that if we’re making these benchmarks then we are definitely improving our position and seeing improvements in infrastructure backlog.
We are spending more money on renewing assets and replacing our wooden bridge network.
Next meeting
In our next meeting, Infrastructure and Assets Manager, Steve Hitchens, will present on what the various scenarios will mean for works on the ground.
This way we can get a better idea as a group of the optimum level of rates rise, which is both affordable and effective.
For more information on our current position, and to work out what a special rates variation will mean for you, please go to the Council website at: https://www.dungog.nsw.gov.au/council/special-rate-variation.
You’ll find a frequently asked questions page, the presentations made to the community, and an online calculator to help you understand how your rates will be affected by a special rates variation.
If you would like any more information, please contact me on 0427 047336, email me at tn@munni.com.au, drop into my office at 224 Dowling St Dungog (if I’m not there one of my staff will make an appointment with you), or contact one of the other Councillors.
