The Independent Pricing and Regulatory Tribunal (IPART) is now considering Port Stephens Council's application for a special rate variation (SRV) of 31.3 per cent over three years.
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As part of the council's application to raise rates by 9.5 per cent per year in 2023-24, 2024-25 and 2025-26, IPART has opened public submissions for the community to have their say about the proposal.
"We will assess applications against the criteria established by the Office of Local Government, which require councils to demonstrate the need for the additional revenue, evidence of community consultation and an assessment of the impact on affected ratepayers," said IPART tribunal chair Carmel Donnelly.
"This year some councils have applied for large increases in rates above the rate peg through special variations.
"We always conduct a feedback process where the community can have its say on the applications, IPART welcomes all input from residents about a council's application for a special variation and IPART is accepting submissions on the councils' applications until March 3."
Each year IPART decides a rate peg for each council in NSW, which sets the maximum amount councils can increase the revenue they collect from rates.
IPART set its council rate peg for the 2023-24 financial year at 3.7 per cent, well above the usual cap of about 2.5 per cent.
But for areas of rapid growth, such as Port Stephens, IPART set the potential peg higher. IPART set the Port's rate peg for 2023-2024 at 4.4 per cent.
Port Stephens Council's three-year SRV of 31.3 per cent includes the IPART limit of 4.4 per cent.
Should the council's application be approved, the rises will be permanently added to the rate base, meaning they will be incorporated into calculations for any future rises.
Councils must seek IPART approval to increase their rates revenue by more than the rate peg. To do this they apply to IPART for a SRV. Port Stephens is one of 13 councils from across NSW that have applied for SRVs.
According to Port Stephens Council general manager Tim Crosdale, the key purpose of its SRV application is financial sustainability.
"The application for a Special Rate Variation is needed to ensure council is financially sustainable for the future as well as to make some enhancements to our roads, public space, natural environment, and waterways/foreshores," he said.
"The decision to make an application for a Special Rate Variation followed extensive community engagement through most of 2022. Community feedback helped identify the services most important to them, informing the small enhancement to services proposed as part of our application."
Mr Hazell acknowledged that the rising cost of living may make it "tough" for many within the Port Stephens community to take on more expenses.
"We have several existing hardship measures in place to help," he said.
"These include arranging smaller regular payments weekly/fortnightly, allowing extra time to pay, deferring rates for aged pensioners against their estate and our Rates Assistance Program, which partners with local welfare and financial counselling services to assist in accessing rate relief of $250 for non-pensioners," he said.
"We're looking to implement additional affordability measures if our SRV application is approved including increasing our Rate Assistance Program to include pensioners with $250 on top of their pension rebate and increasing the amount for non-pensioners from $250 to $500, increasing the debt balance threshold, and providing financial assistance to those who care for koalas or have medical conditions that result in large amounts of waste.
"We're striving to make any application process for financial hardship as simple and accessible as possible."
Port Stephens Council's SRV application is available for review on IPART's website.
The public is invited to make a submission about the council's SRV application by March 3.
IPART will release its final decision about SRV applications in May 2023.
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Ellie-Marie Watts
A journalist with 10 years experience, Ellie-Marie connects readers to the stories that matter in their communities. A Port Stephens-based news, sport and event writer and photographer with a passion for human interest features.
A journalist with 10 years experience, Ellie-Marie connects readers to the stories that matter in their communities. A Port Stephens-based news, sport and event writer and photographer with a passion for human interest features.
