Mr Sherley also said the latest rate peg made no provision for the funding of infrastructure backlogs.

Under rate-pegging, Bathurst Regional Council can only increase rates by 3.4 per cent next financial year – unless it seeks, and is granted, a special exemption. 

Mr Sherley said average annual rates in Bathurst were around $780, so the recommended rate increase would be around $20 for each ratepayer.

“I wasn’t surprised by the figure, it’s consistent with last year,” Mr Sherley said. 

“However, it doesn’t reflect the cost increases faced by council and does nothing to address the infrastructure backlog.”

Mr Sherley said it was also frustrating that rate-capping did not take into account government cost-shifting. 

IPART chairman Dr Peter Boxall said that in setting the rate peg IPART has sought to strike a balance between ensuring that councils can meet the increased costs of delivering services while sharing the benefits of improved productivity with ratepayers.

“The approach we have taken allows council general income to increase in line with costs, as well as encouraging local councils to continue to improve the efficiency of their operations,” he said. “We consider that local councils can continue to provide services more efficiently over time, and that some of these gains should be shared with ratepayers.”

Mr Sherley took offence to this. He said councils have been subjected to rate pegging for close to 50 years. “To suggest this has only just changed in recent years is trite to say the least,” he said.

Member for Bathurst Paul Toole, a former mayor of Bathurst, said he has always supported a rate pegging limit because it gives certainty to ratepayers. He said if councils wish they can apply to the local government minister for a special variation to rate pegging, for one year or several, but they have to justify why they want an increase and what projects it will be going towards.

“The cost of living is increasing all the time and people are doing it tough. They need to be confident they are not going to be hit with a big rate hike,” Mr Toole said. 

“Rate pegging is important to ratepayers, but maybe more flexibility could be added to allow councils to look at their infrastructure backlog.”

Mr Toole said perhaps a sliding scale of between zero per cent and eight per cent might be the answer, as long as councils are not permitted to set exorbitant rates year after year.

He said the government has been very mindful of cost shifting over the past 18 months.

“That’s why we have developed the Local Government Infrastructure Renewal Scheme which has seen $100 million made available for councils to apply for low interest loans of three per cent to be paid back over ten years,” Mr Toole said.