Changes to IPART's rate pegging methodology have been welcomed by Cowra Shire Council Mayor, Ruth Fagan.
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Mayor Fagan said rate pegging had been a major discussion topic at the recent Local Government NSW conference.
"Cowra Shire is looking forward to seeing the way the new simplified rate pegging methodology can be used to determine next year's rates," Cr Fagan said.
In a statement released last week Local Government NSW welcomed the changes to the rate peg methodology describing it as, "a victory for common sense, which should help ease the pressures currently pushing councils to the financial wall.
"IPART is to be congratulated for listening to the genuine concerns of the local government sector," the statement read.
"The new rate peg methodology is simpler than the old method and will result in rate pegs that more accurately reflect the very real impact that the changing cost of service provision has on councils," Local Government NSW (LGNSW) President, Cr Darriea Turley AM, said.
Mayor Fagan said she is hopeful the Cowra Shire rate will be made available soon, so Council can start planning next year's budget.
"However, here at Council we are disappointed that the Government hasn't dropped the rate peg and allowed Councils to determine what they require to keep infrastructure, roads and facilities well maintained and improved for residents," she said.
"Local Governments across NSW are struggling to keep pace with the rising demands and costs which are continually being foisted onto them by other levels of government.
"Many Councils are asking for Special Rate Variations to keep up with these demands.
"Cowra Shire hopes these changes will provide the funds to continue to offer residents high quality services." Mayor Fagan said.
Cr Turley said the changes are, "a really positive outcome after an enormous amount of work and advocacy, not only by LGNSW but by individual councils who helped IPART recognise the challenges they face."
Cr Turley said the changes to the methodology announced by IPART included:
- Forward-looking rather than retrospective indicators, to help rates keep pace with costs
- A base rate calculation that recognised the different financial challenges faced by different kinds of councils, from large metropolitan to small rural councils
- Three further components which have a specific budgetary impact on councils, including employee costs, asset costs and other operating costs
- ESL adjustment components factored into the rate peg calculations.
"IPART has accepted the need for major change in the way the Emergency Services Levy was applied to councils," Cr Turley said.
"It's a clear recognition that the discontinuation of the State Government's ESL subsidy has smashed council budgets, and that the continued payment of this levy by councils has a major impact on their financial sustainability.
"I commend IPART for the hard work they have put into developing a new and far more appropriate rate peg methodology, as well as all the councils who through LGNSW came together to help bring about this change."
Debbie Evans
I was born in Cowra and grew up in the region as part of a farming family. I've had extensive careers both in Journalism and Local Government. I'm passionate about supporting and advancing the local communities of the region and have a keen interest in the current affairs affecting residents. I love being outdoors and I live on a small rural property just outside Young. My spare time is spent with family and friends, camping, fishing, gardening, looking after my small flock of merino sheep and being with my companion dogs. I love to travel and I have been to New Zealand, Europe and Canada. I hope to travel more broadly in Europe in the coming years.
I was born in Cowra and grew up in the region as part of a farming family. I've had extensive careers both in Journalism and Local Government. I'm passionate about supporting and advancing the local communities of the region and have a keen interest in the current affairs affecting residents. I love being outdoors and I live on a small rural property just outside Young. My spare time is spent with family and friends, camping, fishing, gardening, looking after my small flock of merino sheep and being with my companion dogs. I love to travel and I have been to New Zealand, Europe and Canada. I hope to travel more broadly in Europe in the coming years.
