Following an extensive community engagement process, Gunnedah Shire Council has made the difficult but necessary decision to proceed with a Special Rate Variation at an Extraordinary Meeting last week.
The move follows successful rates increases by Tamworth, Armidale, Walcha, Liverpool Plains and a partially successful SRV in the cash-strapped Tenterfield Shire. Rates increases above the annual peg must be approved by the Independent Pricing and Regulatory Tribunal (IPART). In all cases except Armidale, the Special Rate Variation (SRV) was needed to address Council’s financial sustainability and maintain essential community infrastructure and service levels.
Council said there was strong support for no SRV indicated in the community feedback, there was equally strong support for levels of service to at least be maintained or even improved, which they say is not possible without an SRV.
Community feedback however did alter council’s plans, however, indicated that the proposed year one increase was too high.
Council considered a range of scenarios in response to the community feedback and has determined to proceed with a Special Rate Variation over two years that is 37.67% cumulative but caps the increase on Residential, Business and Farmland rate categories at 15% per year (32.25% cumulative). The balance of the revised SRV of 37.67% cumulative is to be sourced from the Mining rating category.
Mayor Colleen Fuller said it is time to plan for the future.
“Gunnedah Shire Council spoke with the community about a proposed application for a Special Rate Variation (SRV) to maintain and potentially enhance the services it currently receives.
“We listened to what the community told us and have developed a revised proposal based on the feedback we received which is crucial in shaping Gunnedah’s future,” she said.
“I would like to thank my fellow councillors and staff for what has been a great team approach to this very important process and to ensuring the outcomes meet the needs of our community as best as possible while also maintaining a range of efficiency and productivity measures.”
Six SRV scenarios were included in the report to Council for consideration and the options were robustly debated at the meeting. Council has also vowed to be mindful of community feedback regarding efficiency and productivity and included an action to achieve $930,000 through efficiency gains and operational savings over the 3-year period 2025 to 2028 with a report to council by May 30th annually during this period.
The option of a lower SRV offset by savings was considered, however, it was also acknowledged that Council operates in a highly legislatively constrained environment and there are minimum levels of service that Council is required to support. In this environment, it is difficult to nominate guaranteed savings that could assist with reducing the impact of a Special Rate Variation. The decision that Council has made is responsible but allows for flexibility in that we will continue to strive for efficiency in the way we can deliver services.
The community will be invited to have their say on the revised SRV proposal and information about the way to do this will be provided on Council’s website
Council will make an application to IPART under section 548 of the Local Government Act 1993 for the Maximum value of the Minimum ordinary rate for Residential, Business and Farmland categories to be set as follows to match the section 508(A) permanent SRV application value:
Category 2025-2026 2026-2027 Residential – OrdinaryResidential – RuralResidential – Gunnedah $638.00 $733.00 Business – Gunnedah $625.00 $718.00 Farmland $638.00 $733.00
Council’s Integrated Planning & Reporting (IP&R) documentation will be updated to meet the SRV application requirements, and the amended IP&R documents will be presented to a future Council meeting for the purpose of being endorsed by Council for public exhibition.
A further Extraordinary Council meeting will be held in January 2025 for the purpose of receiving any submissions on the revised IP&R documentation and to endorse the SRV application, including Council’s approach to continuous improvement, efficiency gains and operational savings, prior to the submission to IPART by February 3, 2025.
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