Bega council drops back from 90% rates increase proposal, but says services will need to be cut as a result

As a result, council has scaled back the hefty rates increase it was proposing, but acknowledged that will mean significant reductions in service levels were needed.

Four options for a potential rates rethink have been circulating in the community since November.

Chief among them was an initial recommendation from council staff that BVSC apply for a 90 per cent SRV to be imposed as of this coming financial year.

This was the option staff said "provides for long-term sustainability and to maintain existing service levels".

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Other options included a 45 per cent SRV in the first year, and a 37.2 per cent SRV in the second year - which thanks to compounding effects would result in the same revenue for council over 10 years as would the 90 per cent increase.

A one-off SRV of 43 per cent council staff acknowledged would see the council fall some $13.9million per year short of the revenue it knows it requires over the next 10 years.

Alternatively, councillors could choose to not request an SRV at all, relying solely on the noted rate peg of 4.1 per cent for the 2023-24 financial year.

The business papers note that this option puts council on "an unsustainable financial trajectory" and some $25.9million short of needed funds each year across 10 years.

The proposed increases are for the "general rates" element of ratepayers' bills, not the total amount, which includes separate sewer and water charges.

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Following several months of community consultation and feedback, councillors will now have to decide of whether they wish to make an application to to the Independent Pricing and Regulatory Tribunal (IPART) for an SRV, and at what level they propose to seek.

The recommendation now noted in council's agenda for the February 1 meeting is for "Option C" - the 43 per cent SRV option.

Accompanying the recommendation for this particular option is for councillors to "support the capital ($134.5m) and operational ($3.3m) reductions in levels of service across the 10 year forecast period...which would be required in the updated Long Term Financial Plan 2023-32 if pursuing Option C".

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According to the business papers for Wednesday's meeting, 2763 responses were received to the council's online survey regarding the SRV options.

That represented around 15 per cent of ratepayers.

A little more than 71 per cent or respondents indicated a preference for no SRV at all, while 28.6 per cent indicated they were supportive of an SRV at some level.

Around 42 per cent said they were dissatisfied or very dissatisfied with the current standard of council services and asset maintenance.

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Council also received 236 written submissions and three petitions.

Information on the SRV plan was also distributed through mailouts (12,979) and e-notices (5470), media releases to local media outlets, newspaper and radio advertising, and on BVSC's social media - where council reported 23,648 views of its 17 relevant posts.

All the written submissions and petition details are included as attachments to council's meeting agenda, as are the full survey results and a commissioned "capacity to pay" report.

It is this report that suggests the capacity for ratepayers across the shire to absorb the rates rise was best achieved through Option C, "particularly if this is supported by an appropriate hardship policy".

The report's findings indicate this option would result in around an $8-10 a week increase in general rates for residential ratepayers by the end of financial year 2024/25, while farmland and business ratepayers would see an increase of between $20-25 a week.

An application for an SRV needs to be made to IPART by February 3.

The council meeting is from 2pm on Wednesday, February 1.

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