LAKE Macquarie residents will pay an average rate rise of 55 per cent over seven years, the Independent Pricing and Regulatory Tribunal has decided.
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Business rates will rise by 71per cent, on average, over the same period.
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The decision will boost the council’s coffers by about $192million over seven years, which is $126million greater than what is allowed under rate pegging.
The council asked the tribunal to approve a residential rate rise of 70per cent over seven years and one of 90per cent for businesses over the same period.
This proposal was labelled option three, which aimed to improve services.
A tribunal report said its decision was ‘‘consistent’’ with the council’s second option, which aimed to maintain services.
It said option two would ‘‘have a more reasonable effect on ratepayers’’, allow the council to improve its finances and make progress on its maintenance and infrastructure backlog.
‘‘It would allow the council to eliminate its operating deficit after five years, while maintaining the level of services and assets its community expects,’’ the tribunal said.
IPART chairman Peter Boxall said the council had demonstrated the need, and evidence of community support, for a significant rate rise to improve its finances, services and infrastructure.
‘‘We were not convinced that the council demonstrated the need and community support for such a large cumulative increase as it requested,’’ Dr Boxall said.
Mayor Greg Piper said he was satisfied with the decision.
‘‘This is a good outcome and I’m happy with it,’’ Cr Piper said.
ALP mayoral candidate Cr Jodie Harrison was disappointed.
‘‘It’s not enough because it won’t allow us to address the $67million infrastructure backlog,’’ Cr Harrison said.
‘‘There will be a drop in the quality of our pools, libraries and town centres.’’
Back to Basics Coalition spokesman Jim Sullivan said residents who opposed option three had been ‘‘somewhat vindicated’’.
‘‘I would have liked to have seen a bigger drop,’’ Mr Sullivan said.
‘‘An incoming council can review this decision and cut unnecessary spending.’’
A council pamphlet, sent to residents during community consultation, said option two would not provide enough money to ‘‘stop the declining quality of our roads’’, despite an extra $16million being allocated over seven years.
It said option two would mean ‘‘libraries will remain open in the short-term’’, but stock and service would decrease over time.
Under the approved option, the council plans to more than double its debt from $58million in 2011-12 to $128million in 2018-19.
