BATHURST Regional Council is showing no appetite at this stage to apply for a rate rise above the two per cent rise to be imposed on all NSW councils in 2021-22 - not yet, at least.
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The Independent Pricing and Regulatory Tribunal (IPART) this week handed down its rates decision for all NSW councils for their next round of budgets, ruling that rates may rise by no more than two per cent unless the council applies for - and is granted - a specific exemption.
IPART says it recognises councils will face increased costs due to delayed elections to be held next September but, curiously, next year's cap will be lower than the 2.6 per cent offered this year.
Still, ratepayers should be wary that every year that Bathurst Regional Council does not apply for a rate increase above the IPART cap simply brings us closer to the year that they finally will.
For many years now, Bathurst residents have been warned that the cap on rates rises is impacting on council's ability to tackle a growing infrastructure backlog.
The warning was there in black and white again this year when, in a report to councillors about the 2020-21 budget, finance director Aaron Jones again included a paragraph that read: "Council should be mindful of the continual squeeze on the council in its ability to raise revenue through rates as compared to pricing policies of State Government and commercial organisations. Consideration needs to be given to increasing general rates above the 'pegged' limit or the reduction of current service levels into the future."
We should expect council's finance staff to deliver the same message to councillors when they meet early next year to begin planning for the 2021-22 budget but it is again likely to fall on deaf ears.
Mayor Bobby Bourke has already made it clear he would not support a rate rise above the IPART cap and any councillor seeking re-election next September is also unlikely to push for a rate rise just a few months out from ratepayers going to the ballot box.
And that means council's infrastructure maintenance backlog - already valued at more than $100 million when this year's budget was drafted in May - is only going to keep growing for the foreseeable future.
At some point councillors will have to bite the bullet and allow council staff to seeker a rise above the cap.
An election year is probably not going to be the year, though.
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