BATHURST Regional Council could apply to increase rates by 10 per cent in coming years despite seeking to stand alone in the state government’s Fit for the Future shakeup.
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All 152 NSW councils were asked to make a submission on their financial viability and to consider merging with neighbouring councils.
With the NSW Independent Pricing and Regulatory Tribunal’s (IPART) final report due to be released on Friday, Bathurst mayor Gary Rush dismissed claims the bumper increase was a done deal.
But he conceded that council’s Fit For The Future submission to the Office of Local Government flagged the potential for a special rate variation (SRV) above the state cap in 2016/17.
“The rate peg is forecast to be 2.4 per cent for 2016/2017 and then 2.4 per cent ongoing,” the submission stated.
“A special rate variation of 10 per cent has been included in the 2016/2017 year, but is subject to council decision in that particular year.”
Cr Rush said the inclusion of the 10 per cent SRV was a “what if” clause.
Alone, he said Bathurst Regional Council was sustainable into the future, but the “what if” clause could provide additional funds, if required due to a merger.
“We don’t know which extra services and amenities we will need to provide ... or the extent of any additional roads,” he said.
But he added that there is “no proposal before council at this point in time to increase rates”.
Cr Rush said that for a number of years council has expanded its budget without the need to increase rates over the existing cap.
The submission also stated that Cr Rush and council general manager David Sherley met with Blayney, Lithgow and Oberon to discuss a merger earlier this year.
“The outcome of those discussions was that the other three councils advised that mergers were not considered appropriate for their council areas,” the submission read.
“They all were, however, keen to pursue potential cost saving and resource sharing options that would provide benefits to their individual community.”
While not wanting to be drawn on whether Bathurst council might be forced to amalgamate, Cr Rush said it was inevitable that some councils will.
“I don’t think it’s possible that the 152 councils that exist can all be financially sustainable into the future and if this reform is a genuine attempt at reform I think it’s inevitable that some councils will merge,” he said.
Blayney, Lithgow and Oberon councils did not include a SRV in their submission, as all three councils already have one in place.
Cr Rush added that if they were granted permission to reallocate funds from dedicated areas such as water or sewerage that this would allow them to direct money to where it is needed in the local government area.