Additional pensioner concession options that could be applied to assist Federation Council ratepayers most impacted by council’s proposed Special Rate Variation (SRV) of 60 pensioner for the next four years will be the subject of a report to council.
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Councillors also endorsed the proposed SRV being submitted to the Independent Pricing and Regulatory Tribunal (IPART) which is required by this Friday, February 3. This was agreed to by seven of its nine councillors (Cr Sally Hughes and Cr Aaron Nicholls opposed) at the monthly meeting in Urana on Tuesday, January 31. IPART’s decision is expected by mid may.
Mulwala Progress Association President Robert Purtle OAM told the Chronicle last week he has heard first-hand from ratepayers who say they are battling with everyday living expenses, let alone having to worry about the potential for big rate rises for at least the next few years.
Mr Purtle said over 40% of Mulwala ratepayers are either pensioners, low-income earners or retired people.
“These proposed rate-hikes will be detrimental to nearly 50 per cent of the town’s population. Many are finding it unaffordable to live in Mulwala.
“I’ve had several pensioners say to me with the increases in insurance, gas, electricity – everyday cost-of-living pressures – they’ve got to find extra money without an income and they’re scared,” Mr Purtle said.
Before councillors voted on Tuesday an address was given by Rates Review Committee Chairperson Derek Schoen who expressed alarm by ratepayers of the 60 per cent increase, becoming 75 per cent cumulative, insufficient community consultation and difficulty which will be experienced by members in the community such as retirees on fixed incomes paying the increase even with the pensioner rebate.
“Cr David Fahey did mention that this was an area that could be looked at,” Mr Schoen said.
“It should be kept in mind any additional assistance funded by council will be funded by remaining ratepayers not government.”
Cr David Fahey OAM referred to the most vulnerable people.
“We have been very aware of this situation to relieve pressures on these people. There are different scenarios and impacts on council costs. There are lots of solutions to these,” Cr Fahey said.
Mayor Pat Bourke said council has been responsible in giving due diligence and complying with audit processes in being accountable with other local government areas.
“We believe there’s a great need for this SRV for community members and their lifestyles for future years to come,” he said.
“It won’t be business as usual. We will stive to improve our efficiencies in all levels of council to build a strong council- so that us councillors voted in by our people can do the job that we can be truly proud of in our local government area.”
Council's Long Term Financial Plan adopted in June 2021 foreshadowed a significant Special Rate Variation (SRV) to enable Council to maintain and renew its extensive infrastructure network, particularly with respect to roads, bridges and buildings/facilities.
The planned scenario adopted by council provided for an SRV with current services maintained and an increase in service levels for roads and other community infrastructure. The scenario provided a $48 million annual operating program and $18.6m capital program for 2022/23 and a $104m total capital program over the 10 years.
It contains rate increases at 2.5% for 2022/23, followed by a special rate variation for four years from 2023/24 to 2026/27 at 19%, 17%, 14% & 10% inclusive of any maximum rate peg amount set by IPART each year.
A range of community engagement activities has been undertaken over a two year period to increase community awareness of council’s proposed SRV. The most topical feedback received included concern regarding the ability of financially vulnerable community members, including pensioners, to pay increased rates, acknowledgement that general rates are low relative to other council areas, growing concern that council’s assets are deteriorating and that further investment is required, and concern regarding the level of efficiency and effectiveness of council services.
Council’s SRV proposal would provide capacity to address the asset management demands of existing infrastructure, increase service levels as required, for roads and other community infrastructure, maintain similar levels of service to those currently delivered for other services and continue to improve its financial sustainability over a ten-year period according to director corporate and community services Jo Shannon.
“In effect, this scenario would enable council to address the increasing concerns being raised within the community regarding council’s local road network and other ageing infrastructure,” she said.
The recently adopted State of our Council Infrastructure report 2022 and Strategic Asset Management Plan provide more detail on the assets that require attention, with a need of significance for roads, drainage and buildings.
“Clearly many of council’s roads have not had the funding required to be allocated to them, even going back over a period of 20 to 30 years, to allow maintenance and upgrade/renewal to cope with increasing traffic demands including year around (including wet weather) requirements for heavy vehicle movements for the agricultural industry especially,” Ms Shannon said.
“Not proceeding with the SRV application will result in council having increasingly limited funds to deliver services and maintain assets, with a need to reprioritise its expenditure on assets and services and reduce service levels in a range of areas.”
She said the longer the delay to invest in infrastructure asset maintenance and renewal, the increased financial risk there is to council. “In simple terms, as contained within the recent State of Council Infrastructure 2022 report, a reseal on a sealed road costs approximately $30,000 per km to renew,” Ms Shannon said.
“If the road deteriorates and requires heavy patching prior to a reseal, the cost is approximately $125,000 per km. If the deterioration is more significant it may require a reconstruction which costs approximately $300,000 per km to rectify.”
Mr Purtle said over 40 per cent of Mulwala ratepayers are either pensioners, low-income earners or retired people.
“These proposed rate-hikes will be detrimental to nearly 50 per cent of the town’s population. Many are finding it unaffordable to live in Mulwala.
“I’ve had several pensioners say to me with the increases in insurance, gas, electricity – everyday cost-of-living pressures – they’ve got to find extra money without an income and they’re scared,” Mr Purtle said.
Before councillors voted on Tuesday an address was given by Rates Review Committee Chairperson Derek Schoen who expressed alarm by ratepayers of the 60 per cent increase, becoming 75 per cent cumulative, insufficient community consultation and difficulty which will be experienced by members in the community such as retirees on fixed incomes paying the increase even with the pensioner rebate.
“Cr David Fahey did mention that this was an area that could be looked at,” Mr Schoen said.
“It should be kept in mind any additional assistance funded by council will be funded by remaining ratepayers not government.”
Cr David Fahey OAM referred to the most vulnerable people.
“We have been very aware of this situation to relieve pressures on these people. There are different scenarios and impacts on council costs. There are lots of solutions to these,” Cr Fahey said.
Cr Sally Hughes and Cr Aaron Nicholls voted against the rates plan with the final vote being 7-2.
Mayor Pat Bourke said council has been responsible in giving due diligence and complying with audit processes in being accountable with other local government areas.
“We believe there’s a great need for this SRV for community members and their lifestyles for future years to come,” he said.
“It won’t be business as usual. We will stive to improve our efficiencies in all levels of council to build a strong council- so that us councillors voted in by our people can do the job that we can be truly proud of in our local government area.”
Council's Long Term Financial Plan adopted in June 2021 foreshadowed a significant Special Rate Variation (SRV) to enable Council to maintain and renew its extensive infrastructure network, particularly with respect to roads, bridges and buildings/facilities.
The planned scenario adopted by council provided for an SRV with current services maintained and an increase in service levels for roads and other community infrastructure. The scenario provided a $48 million annual operating program and $18.6m capital program for 2022/23 and a $104m total capital program over the 10 years.
It contains rate increases at 2.5% for 2022/23, followed by a special rate variation for four years from 2023/24 to 2026/27 at 19%, 17%, 14% & 10% inclusive of any maximum rate peg amount set by IPART each year.
A range of community engagement activities has been undertaken over a two year period to increase community awareness of council’s proposed SRV.
The most topical feedback received included concern regarding the ability of financially vulnerable community members, including pensioners, to pay increased rates, acknowledgement that general rates are low relative to other council areas, growing concern that council’s assets are deteriorating and that further investment is required, and concern regarding the level of efficiency and effectiveness of council services.
Council’s SRV proposal would provide capacity to address the asset management demands of existing infrastructure, increase service levels as required, for roads and other community infrastructure, maintain similar levels of service to those currently delivered for other services and continue to improve its financial sustainability over a ten-year period according to director corporate and community services Jo Shannon.
“In effect, this scenario would enable council to address the increasing concerns being raised within the community regarding council’s local road network and other ageing infrastructure,” she said.
The recently adopted State of our Council Infrastructure report 2022 and Strategic Asset Management Plan provide more detail on the assets that require attention, with a need of significance for roads, drainage and buildings.
“Clearly many of council’s roads have not had the funding required to be allocated to them, even going back over a period of 20 to 30 years, to allow maintenance and upgrade/renewal to cope with increasing traffic demands including year around (including wet weather) requirements for heavy vehicle movements for the agricultural industry especially,” Ms Shannon said.
“Not proceeding with the SRV application will result in council having increasingly limited funds to deliver services and maintain assets, with a need to reprioritise its expenditure on assets and services and reduce service levels in a range of areas.”
She said the longer the delay to invest in infrastructure asset maintenance and renewal, the increased financial risk there is to council.
“In simple terms, as contained within the recent State of Council Infrastructure 2022 report, a reseal on a sealed road costs approximately $30,000 per km to renew,” Ms Shannon said.
“If the road deteriorates and requires heavy patching prior to a reseal, the cost is approximately $125,000 per km. If the deterioration is more significant it may require a reconstruction which costs approximately $300,000 per km to rectify.”
Journalist