Council Consultation on Special Variation to Rates to commence this week
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At the Council Meeting held on Tuesday November 12 2024 an Item was passed that seeks to commence the required consultation with the community in order to apply to IPART, if passed, for a Special Variation atop annual rate increases for the next 3 years.
Following community engagement, a report will be tabled to an Extraordinary Council Meeting in late January.
Pending the outcome of that meeting, a submission for a Special Variation would be lodged with IPART, as required, by 3 February 2025.
IPART determinations are usually made available in May each year.
A report to the June 17 2025 Council Meeting would then be tabled, and the increases commence from July 1.
Council’s report to the Meeting cited other councils across NSW had applied for an increase due to the rise in costs and to meet services and project budgets this year. A total of 9 councils made these applications – 7 in rural areas and 2 in metropolitan Sydney; Randwick and Willoughby.
One Rural council applied for an increase of up to 51.2% earlier this year. These LGA’s have an annual rate in the hundreds of dollars, not thousands, despite the rise in property values to homes and land in some areas being on par with metropolitan areas. These increases will add, in some cases, around $200 by the end of the increases over a certain set amount of years.
In the case of one council, Randwick, the application was to extend an SRV that would have lapsed on June 30 this year.
One application, Snowy Valleys, was refused.
IPART did not approve the increases applied for in full in all cases - some were granted a lesser amount. Details in [1].
In 2023 17 NSW councils applied to the Independent Pricing and Regulatory Tribunal (IPART) for special variations to increase their general income over the rate peg. Residents of Strathfield were hit with a 35.1 per cent increase in 2023-24, followed by 13 per cent the following year, 17.5 per cent the year after and another 7.5 per cent in 2026-27 — a cumulative increase of 92.83% over four years.
The tribunal received more than 1800 submissions from residents about the proposed increases.
“Historically, Strathfield Council has been a very efficient council, in that it did the basics well (waste, cleaning, development applications, etc.),” one respondent wrote. “Candidates for councillors did not advocate discretionary, or bread and circuses, services in order to be elected. However, something went wrong in recent years and now Strathfield Council is before IPART seeking outrageous rate increases.”.
The writer was referring to the “most outrageously, glossy four-page colour brochures, hand-delivered to residents’ letter boxes, which describe the bread-and-circuses services that have nothing to do with the council’s core business”.
The increase was calculated by some residents (those living in houses valued at $2.5mill +) as being between $500 and $1500. Residents then called 'foul' stating the council's required consultation had not been transparent, or spoken plainly, about what the actual increases would be to those across that LGA.
Queanbeyan-Palerang Regional Council was approved for an increase of 64.3% over three years in 2023, Armidale Regional Council for an increase of 58.8% over three years. One council, Tenterfield Shire Council, applied for a three-year cumulative increase of 104.49% but was only partially approved for a 43% increase over one year.
NSW Farmers slammed the “ridiculous” regional rate rises, saying the added costs would smash local communities.
“We’re all facing the same cost-of-living pressures, high power prices, high fuel prices, rising interest rates, and we’ve got no ability to meet those extra costs,” NSW Farmers president Xavier Martin said in a statement
Hornsby Council's application was approved in full. Rates would rise by 8.5% in 2023/24, 7.5% in 2024/25, 6.5% in 2025/26 and 5.5% in 2026/27, which represents an increase of 31.05% (cumulative) staged over four years, including the annual rate peg set by IPART.
''In addition to helping maintain assets, the funds will be used for upgrading and improving public toilets, community centres and sportsground amenities over the coming years. It will also go towards starting work on a connected network of walking and cycling paths and improving bushwalking trails.
The money will also be spent preparing our community for the future through resilience programs, bushfire mitigation and education, and events and activities to build social inclusion. There are plans to revitalise the Pennant Hills Town Centre and to further protect our community’s personal information through improved cyber security.'' that council stated to residents once the SRV was approved
In a released statement the following day the Northern Beaches Council said it is ‘asking for community feedback on four proposed options to protect the long-term sustainability of community infrastructure and services’.
‘Like many councils in NSW, Northern Beaches is facing growing financial pressure with a widening gap between rates income and the cost to maintain services like roads, footpaths, sportsfields, playgrounds and pools.’ the statement says
''‘Rates income increases each year by the limit (called the ‘rate peg’) set by the Independent Pricing and Regulatory Tribunal (IPART), and recently this has been less than half the inflation rate. This means rates income is now $24 million lower each year than it would have been if it had been keeping up with inflation.''
As of September 2024, the inflation rate in New South Wales (NSW) was 2.8% over the previous 12 months.
Annual CPI inflation was 2.8 per cent in the September quarter, significantly down from 3.8 per cent in the June quarter. Sydney recorded an annual rise of 2.9%. - ABS
Council's release goes on to state:
''Additionally, ageing assets and the heavy cost of natural disasters, the COVID-19 pandemic, and ongoing cost shifting to Council from other tiers of Government is impacting Council’s long term financial sustainability.
Council has consistently looked for ways to reduce costs and improve productivity like saving $2.5 million over 3 years through 100% renewable energy agreement, savings in insurances and fees and improving the organisational structure to place more positions in community facing services. While these initiatives have supported Council’s financial sustainability to date, they are not of a scale that can ensure its financial security long term.
To meet the needs of our community today and into the future, we are asking the community to consider four options to support community infrastructure for the future.
The first option, reduce service, is the current path, with a rate increase from 1 July 2025 in line with the NSW Government annual rate peg of 3.8%. This option does not achieve financial sustainability or provide additional funding to address the community’s priorities and will mean cuts to services.
Three other options involve Council applying for an increase in rates (called a Special Variation) to generate funding for maintenance, infrastructure improvements, environmental programs and community services.
1. Reduce services
2. Maintain services – fund asset renewal and maintenance gap, environmental and natural risk reduction
3. Improve services – option 2 + deliver larger renewal projects
4. Increase services – option 3 + accelerate infrastructure delivery and increase services’’.
The report to Council lists those 1-4 points, more clearly, as:
a. Option 1 Reduce service - Rate peg only (current path)
b. Option 2 Maintain service - Rate peg + 6% pa over 3 years
c. Option 3 Improve service - Rate peg + 8.3% pa over 2 years and 8.4% in year 3
d. Option 4 Increase service - Rate peg + 10% pa over 3 years.
That report also states:
‘Without the adoption of Option 3 or 4, projects like the Warringah Aquatic Centre or Manly Life Saving Club will not be possible.’
Projects such as missing sections of the Coast Walkway, as that which is 'unfunded' from Whale to Palm beach, along with a section of the Bilgola walk, although not cited, are listed under works the increases would be applied to in the detailed report tabled to Councillors.
In Option 3 the additional cumulative increase will amount to 29.0% over 3 years.
In Option 4 the total cumulative increase will amount to 46% over 3 years.
Mayor Sue Heins said this was one of the most important conversations the Council could have with the community.
“Talking with our community about rate increases is challenging, especially when we know the cost of living is hitting hard. We wouldn’t be considering these options if we didn’t think it was critically important to the future of the Northern Beaches.
“The investment needed to maintain, renew, and improve our ageing roads, sportsfields, playgrounds, pools, libraries, and other community infrastructure is escalating. Without additional funding they will deteriorate and services will need to be cut back.
“I encourage everyone to review the 4 options proposed, use the rates calculator to understand the impacts on your individual rates, join an information session, be part of the conversation and have your say.”
Community engagement starts Monday 18 November and closes Sunday 12 January 2025. Council will host a range of consultation pop ups and online information sessions.
Apparently 'print media/killing more tree' will also be used.
Community Pop-ups
22 Nov .: Warriewood (Rat Park) Markets
23 Nov.: Forestville Shopping Centre
24 Nov.: Manly Fresh Produce Markets,
27 Nov.: Balgowlah Shopping Centre (Stockland)
28 Nov.: Walter Gors Park, Dee Why
30 Nov.: Freshwater Village
30 Nov.: Mona Vale Memorial Hall
5 Dec.: Forest Way Shopping Centre
6 Dec.: Avalon Woolworths
15 Dec.: Berry Reserve Markets
Online information sessions
2 Dec
11 Dec
The consultation webpage, which will have the documents available from Monday November 18 until January 11, and be the place to lodge feedback, is at: https://yoursay.northernbeaches.nsw.gov.au/funding-our-future
Background – from documents made publicly available for each meeting under Council’s ‘Meetings’ tab on NBC website
The Annual Report 2023/24 shows that Council did not invest sufficient funding in the maintenance and renewal of infrastructure assets in that year and as a result did not meet 2 of the asset performance benchmarks set by the Office of Local Government. It is anticipated that Council will not achieve these assets performance benchmarks in 2024/25 due to the current level of funding of assets
ITEM 9.3 SPECIAL VARIATION TO RATES - COMMUNITY ENGAGEMENT
PURPOSE
The purpose of this report is to provide a further update on Council’s long term financial sustainability, the cost containment strategies undertaken to date and future potential cost improvements; and in considering the current financial position, to seek Council approval to undertake community engagement on options for a Special Variation (SV) to rates that will improve Council’s financial sustainability and infrastructure investment.
EXECUTIVE SUMMARY
• Significant events such as the COVID-19 pandemic, storms, flooding and bushfire threats have significantly impacted Council’s financial sustainability over recent years.
• Cost shifting continues from other tiers of government futher increasing Council’s expenditure obligations. In 2023/24 the Emergency Services Levy alone increased by $3 million to $9 million, equivalent to a $30 increase per ratepayer.
• High inflation and price volatility, combined with the historical lag in the rate peg, continues to see a growing divergence between costs and rates income. Inflation on infrastructure increased by 23.7% over the last 4 years – more than double the 11.1% increase in rates income, which is equivalent to an accumulative ongoing gap of $23.6 million in rates income.
• Council’s Asset Management Strategy and Asset Management Plans have identified an ever-increasing trend in the decline of asset condition across the asset portfolios. To address this, additional maintenance is required, and a greater level of asset investment to renew existing assets to provide the required level of service.
• Since its creation, Council has consistently produced a high level of productivity improvements and cost containment initiatives that has provided the community of the Northern Beaches with a cost efficient and effective Council. While these initiatives have assisted Council’s financial sustainability to date, they are not of a scale that can ensure its financial security long term.
• In order to remain financially sustainable without service level reductions, it is recommended that Council should take steps towards making an application to IPART for a Special Variation to rates to take effect from the 2025/26 financial year.
• Before making an application to IPART, Council is required to engage with the community on the potential options for a Special Variation to rates. Four options are proposed in this report, namely option 1 – Reduce service (no SV), Option 2 – Maintain service, Option 3 – Increase service and Option 4 – Improve service.
• Community engagement will include establishing a Your Say web page that will offer clear and easy to understand resources such as fact sheets, a video explainer, frequently asked questions, and webinars. Other communication tools include print advertising in local publications, a letter sent directly to all ratepayers, and information stations at Council customer service contact points and key locations including our libraries. Council has a highly engaged customer database on email and updates will be regularly sent to promote the engagement through the weekly Council electronic direct mail (EDM).
• Following community engagement, a report will be tabled to Council in late January to consider if Council should proceed to submit an application to IPART for a Special Variation to rates of one of the options consulted on. Without the adoption of Option 3 or 4, projects like the Warringah Aquatic Centre or Manly Life Saving Club will not be possible.
RECOMMENDATION
That Council:
1. Approve community engagement to be undertaken between mid-November 2024 and midJanuary 2025 on proposed options for a Special Variation to rates.
2. Endorse community engagement on the below options for a Special Variation to rates:
a. Option 1 Reduce service - Rate peg only (current path)
b. Option 2 Maintain service - Rate peg + 6% pa over 3 years
c. Option 3 Improve service - Rate peg + 8.3% pa over 2 years and 8.4% in year 3
d. Option 4 Increase service - Rate peg + 10% pa over 3 years.
3. Endorse the Community Engagement Plan.
4. Endorse the Delivery Program 2024-2028 and Operational Plan 2024/25 draft Addendums for options of a Special Variation to rates and revised Long-Term Financial Plan 2024-2034 for public exhibition during the community engagement period.
5. Note that the outcomes of the community engagement process will be reported to Council at an extraordinary meeting to be held in January 2025, with Council to determine whether an application should be submitted to IPART to apply for a Special Variation to rates to support Council’s financial sustainability
And the reason Pittwater seceded from Warringah in the first place, and one of the primary reasons the LGA fought against being reamaglamated with Warringah again prior to May 2016’s forced amalgamation.
[1.]
The Minister for Local Government delegated the power to grant SVs to IPART. By delegation dated 6 September 2010, the then Minister for Local Government delegated to the Tribunal all functions under sections 506, 507, 508(2), 508(6), 508(7), 508A, 548(3) and 548(8) of the Local Government Act 1993 (NSW), pursuant to section 744 of that Act.
In February 2024 9 councils applied for Special Rate variations, with the decision handed down in May.
See; www.ipart.nsw.gov.au/Special-Variations-Minimum-Rates/Special-Variations-and-Minimum-Rates-2024-25
A May 14 2024 IPART release states:
IPART Decisions on Council Special Variation Applications
The Independent Pricing and Regulatory Tribunal (IPART) has released its decisions on 9 NSW council applications for special variations to increase their general income by more than the rate peg.
IPART Chair Carmel Donnelly said of the 9 Special Variation applications, the Tribunal had approved 5, approved a lower increase for 3 and declined one.
Two of the applications were combined with minimum rate increase applications. The Tribunal approved one of these applications and approved a lower increase for the other.
“These decisions are based on our assessment against the Office of Local Government criteria, taking into account the issues raised by stakeholders during our submission period,” Ms Donnelly said.
“The councils with approved increases are encouraged to consult with the community to decide how best to implement the allowed increase.
“It’s important to note that elected councillors can choose when they implement the approved increase in rates income, including deferring any increases for up to 10 years and also how they set rates across the rating categories.”
Every year IPART sets a rate peg for each council in NSW which caps the maximum amount councils can increase the general income they collect from ratepayers (rates income).
IPART set the core rate peg for 2024-25 between 4.5% to 5.5%.
There is also an allowance for some councils that experienced population growth.
If the elected councillors agree that a council needs additional revenue, the council can apply to IPART for a special variation to increase rates income by more than the rate peg.
IPART assesses special variation applications and minimum rate increase applications against criteria set out in guidelines issued by the Office of Local Government. Reports on each of the 9 council special variation decisions, 2 minimum rate decisions, and related documents are now available on the IPART website at www.ipart.nsw.gov.au
Overview of 2024 Applications:
Blayney Shire Council
Blayney Shire Council (the council) applied to IPART to increase its general income through a permanent special variation of 33.1% over 3 years from 2024-25 to 2026-27. This included a proposed increase of 10.0% per year from 2024-25 to 2026-27 (Table 1.1).
2024-25 2025-26 2026-27
Annual increase (%) 10.0 10.0 10.0
Cumulative increase (%) 21.0 33.1
Additional annual income ($’000) 979.4 1,100.2 1,210.2
IPART have approved the council’s application as set out in Table 1.1.
IPART's approval is subject to certain conditions, including that the council:
• use the additional income for the purpose outlined in its application
• report in its annual report for 2024-25 until 2031-32 the actual program of expenditure funded by the additional income and the outcomes achieved. [The full conditions are set out in Chapter 10 of IPART's report].
Goulburn Mulwaree Council
Goulburn Mulwaree Council applied to permanently increase its general income and its business minimum rate by 51.2% over the 3 years from 2024-25 to 2026-27 (inclusive).
IPART did not approve this application in full, but instead approved a 22.5% increase to its general income in 2024-25.
IPART also approved an increase in its business minimum rate to $722 (a 22.5% increase) in 2024-25.
Table 1.1
Annual general income increases under Goulburn Mulwaree Council’s application
2024-25 2025-26 2026-27
Annual increase (%) 22.5 16.0 6.4
Cumulative increase (%) 42.1 51.2
Additional annual income ($‘000) 5,370.9 4,678.7 2,170.9
The council sought the special variation to:
• cover its increasing costs which are currently outpacing revenue growth
• continue providing services and assets to meet the growing demand of a regional city
• improve the infrastructure network, namely roads and parking.
The council also applied to increase its minimum rate (MR) for business ratepayers by the same percentage as the SV over 3 years. This would mean that the MR would increase from $590 in 2023-34 to $890 in 2026-27.3
Griffith City Council
Griffith City Council applied to permanently increase its general income by 34.9% over 3 years from 2024-25 to 2026-27 inclusive. IPART did not approve the application in full. Instead, IPART approved a permanent increase of 22.10% over 2 years
Griffith City Council (the council) applied to IPART to increase its general income through a permanent special variation (SV) of 34.9% over a 3-year period from 2024-25 to 2026-27.
This included an increase of 10.50% per year from 2024-25 to 2026-27.
Table 1.1 sets out the percentage increases that the council applied for.
Table 1.1
Annual increases under the council’s application
2024-25 2025-26 2026-27
Annual increase (%) 10.50 10.50 10.50
Cumulative increase (%) 22.1 34.9
Additional annual income ($’000) 2,070.8 2,288.3 2,528.5
The council told IPART it intends to apply this increase across all rating categories.
The council sought the SV to:
• ensure financial sustainability of the council’s general fund
• maintain existing services.
Kempsey Shire Council
Kempsey Shire Council applied to permanently increase its general income by 42.70% over a 3-year period from 2024-25 to 2026-27 inclusive.
IPART did not approve this application in full, but instead approved a permanent increase of 24.09% over 2 years from 2024-25. Kempsey Shire Council (the council) applied to IPART to increase its general income through a permanent special variation (SV) of 42.70% over the 3 years from 2024-25 to 2026-27.
It proposed a relatively small increase in 2024-25 and larger increases in each of the following years (Table 1.1). It told us that it intends to apply these increases across all rating categories.
Table 1.1 Annual increases under the council’s application
2024-25 2025-26 2026-27
Annual increase (%) 7.90 15.00 15.00
Cumulative increase (%) 24.09 42.70
Additional annual income ($‘000) 1,890 3,871 4,452
The council sought the SV to:
• improve financial sustainability
• maintain existing services and service levels generally
• address current and forecast infrastructure backlogs for asset renewals
• meet cost pressures it is facing.
Narrandera Shire Council
Narrandera Shire Council applied to permanently increase its general income by 48.1% over 2 years from 2024-25 to 2025-26 inclusive, and to increase its minimum rates by approximately the same percentages.
IPART approved the application.
Narrandera Shire Council (the council) applied to IPART to increase its general income through a permanent special variation (SV) of 48.1% over 2 years from 2024-25 to 2025-26 (Table 1.1).
This included an increase of 25.5% in 2024-25 and 18.0% in 2025-26. That Council told IPART it intends to apply this increase across all rating categories.
Table 1.1 Annual increases under Narrandera Shire Council’s application
2024-25 2025-26
Annual increase (%) 25.5 18.0
Cumulative increase (%) 48.1
Additional annual income ($’000) 1,405.3 1,245.0
The council sought the SV to:
• cover increasing costs which are outpacing revenue growth
• continue providing services at current levels
• commence a major capital works project, the Narrandera CBD stormwater infrastructure duplication project, to address flooding.
Table 1.2 Annual minimum rates under Narrandera Shire Council’s application
($) 2024-25 2025-26
Minimum rate – Residential Ordinary 640 755
Minimum rate – Business Ordinary 640 755
Minimum rate – Business Narranderaa 715 845
Minimum rate – Farmland Ordinary 640 755 a.
In its Part A application the council noted that the minimum rate for Business Narrandera would be $844, however, its 21 November 2023 resolution noted that councillors resolved to propose $845. IPART confirmed with the council it is its intention to propose the Business Narrandera minimum rate to be $845.
For residential, business and farmland ordinary rating categories, the minimum rates would increase from $510 to $755 by the end of the 2-year period.
For the ‘Business Narrandera’ category, the minimum rate would increase from $570 to $845 by the end of the 2-year period.
Randwick City Council
(where the former NBC CEO recently returned to) - Randwick City Council applied to permanently increase its general income by 11.67% in 2024-25.
IPART approved the application.
Randwick City Council (the council) applied to IPART to increase its general income through a permanent special variation (SV) of 11.67% in 2024-25.
Randwick Council told IPART it intends to apply this increase across all rating categories.
Table 1.1 Annual increases under Randwick City Council’s application 2024-25
Annual increase (%) 11.67
Additional annual income ($’000) 11,185.
This is made up of the increase from the rate peg ($4.6 million) and the environmental levy ($6.5 million) + first-year adjustments ($34,000).
The council sought the SV to replace an existing, temporary SV that will expire on 30 June 2024. This temporary SV was granted to allow the council to continue charging an environmental levy that has been in place since 2004.
This levy been renewed 3 times in the past, each for a period of 5 years. When the temporary SV expires, the council’s permissible general income will decrease by about $5.3 million.
The council told IPART it will use the funds from the proposed permanent SV for the same purpose as the expiring temporary SV. It intends to:
• continue implementing various ongoing projects to improve the natural environment’s condition
• maintain and improve its service levels generally related to the environment – including Gross Pollutant Traps and public Electric Vehicle charging stations
• plan future projects better knowing that the council will have the capacity to carry them out to their full term
• be better placed to apply for external grant funding
• preserve and maintain its financial sustainability while delivering specific environmental outcomes as detailed in its Environment Strategy -
The council has an established Audit Risk and Improvement Committee (ARIC) in place to improve productivity in its operations. It conducts an ongoing four-year Service Review Program, as set out in its 2022-26 Delivery Program. The council has demonstrated some past cost savings, but only identified minimal future savings at this point.
IPART also had regard to the context of the SV being a special purpose levy that has been in place since 2004.
IPART considered that the nature of the council’s application is to maintain an already existing revenue stream, and that the community has shown a willingness to pay.
As a result, IPART approved the permanent SV.
IPART found that the council has not fully complied with conditions attached to past SVs. Compliance with these conditions is integral to the SV process, allowing the council to be held accountable for the commitments it made to its community when it decided to apply for the SV, and providing ratepayers confidence in their council. The OLG is the body responsible for enforcing compliance with the conditions attached to SVs. The IPART Chair has written to the OLG identifying the council’s failure to fully comply with past SV conditions. IPART attached reporting conditions to this SV approval and expects the council to fully comply. IPART will consider whether a council has complied with its SV conditions in assessing future SV applications.
Snowy Valleys Council
Snowy Valleys Council applied to IPART to permanently increase its general income by 42.38% over 3 years from 2024-25.
IPART have not approved the application. The council can increase its general income by the rate peg of 5.0% in 2024-25.
Snowy Valleys Council (the council) applied to IPART to increase its general income through a permanent special variation (SV) of 42.38% over a 3-year period from 2024-25 to 2026-27 (Table 1.1).
The council told IPART that it intends to apply this increase across all rating categories. The council sought the SV to:
• improve its financial sustainability by reducing the operating deficit
• deliver existing services without reducing service levels
• adequately fund ongoing asset maintenance and renewal
• reduce the council’s reliance on external grant funding for asset renewals.
Table 1.1 sets out the percentage increases that the council applied for.
Table 1.1 Annual increases under the council’s application
2024-25 2025-26 2026-27
Annual increase (%) 12.50 12.50 12.50
Cumulative increase (%) 26.56 42.38
Additional annual income ($’000) 1,549.2 1,777.2 1,999.4
The council was granted a permanent SV of 35.95% in 2022-23 over 2 years from 2022-23 to 2023-24 for generally the same purpose as the proposed SV. If approved, the proposed SV would apply immediately after the current SV period. The cumulative impact of these consecutive SVs would be 93.57% over 5 years. We have taken into account this information, and other information related to the 2022-23 SV, in making our decision on the proposed SV
Tamworth Regional Council
Tamworth Regional Council applied to IPART to permanently increase its general income by 36.3% over a 2-year period from 2024-25 to 2025-26 inclusive.
IPART approved the application.
Tamworth Regional Council (the council) applied to IPART to increase its general income through a permanent special variation (SV) of 36.3% over a 2-year period from 2024-25 to 2025-26 (Table 1.1).
The council told IPART that it intends to apply this increase across all rating categories. Table 1.1 sets out the percentage increases that the council applied for. Table 1.1 Annual increases under the council’s application 2024-25 2025-26 Annual increase (%) 18.50 15.00 Cumulative increase (%) 36.3 Additional annual income ($’000) 7,907.0 7,597.2
The council sought the SV to :
• achieve financial sustainability
• deliver current services and maintain assets
• maintain fit for purpose infrastructure
• address backlogs in key asset categories such as roads, buildings and open space
Table 1.2 Average rate increases under the approved SV
2024-25 2025-26 Cumulative increase
Residential 18.5% 15.0% 36.3%
Business 18.5% 15.0% 36.3%
Farmland 18.5% 15.0% 36.3%
Mining 18.5% 15.0% 36.3%
Table 2.1 Proposed SV
2024-25 2025-26 Annual increase (%)
18.50 15.00
Cumulative increase 36.3
Additional annual income 7,907 7,597
The council proposed that rates would increase for all categories over the 2 years of the SV. 8 It proposed that, on average:
• residential rates by 2025-26 would increase by $434.3 or 36.3%
• business rates by 2025-26 would increase by $1,506.9 or 36.3%
• farmland rates by 2025-26 would increase by $779.2 or 36.3%
• mining rates by 2025-26 would increase by $3,654.1 or 36.3%.
The council provided the number of rate notices it expects to issue for 2024-25. See Table 2.2.
Ratepayer category Number of rate notices:
Residential 24,073
Business 1,778
Farmland 3,032
Mining 2
Total 28,885
Willoughby City Council
Willoughby City Council applied to IPART to permanently increase its general income by 15% in 2024-25.
IPART have approved the application.
Willoughby City Council applied to IPART to increase its general income through a permanent special variation (SV) of 15% in 2024-25. That Council told IPART it intends to apply this increase across all rating categories.
Other matters considered;
the council was granted one temporary SV of 11.82% in 2015-16 over 2 years and a permanent additional special variation (ASV) of 2.1% in 2022-23. The council complied with 2 out of the 3 reporting conditions associated with its temporary SV from 2015-16 to 2017- 18 but did not report for the last 4 years of its reporting requirements. It also did not meet the ASV conditions.
Stakeholders’ feedback
Councils are required to consult with their communities as part of the IP&R framework. The OLG criteria that IPART assess SV applications against requires IPART to look at the consultation the council has undertaken as part of their assessment.
Willoughby City Council consulted on its proposed SV with its community using a variety of engagement methods.
It received 65 written submissions, recorded 2,349 survey responses, held 14 community events and published website content that had 6,682 visitors.
The council has 32,457 ratable properties.
These engagement strategies took place from May 2023 to January 2024.
As a further input to IPART's assessment, it published the council’s application on the IPART website for a 3-week consultation period and invited stakeholders to provide feedback directly to IPART. Through this process, IPART received 10 responses to its feedback form, and 1 additional submission on Willoughby City Council’s proposed SV.
This submission and the feedback form responses raised concerns about the:
• council’s financial management and the need for the SV
• council’s consultation with the community
• council’s efficiency and productivity.
IPART states in its report that 6 of the 10 stakeholders who provided feedback supported the council’s proposed SV. IPART considered stakeholder feedback in more detail in Chapter 3 and throughout its report as relevant to the assessment made.
Table 1.2 Average rate increases under the approved SV 2024-25
Residential 15.0%
Business 15.0%
Table 2.1 Proposed SV 2024-25
Annual increase (%) 15.00
Additional annual income (‘$000) 8,154.6
The council sought the SV to:
• recover from recent financial impacts, including high inflation, COVID-19 revenue losses, mandated staff wage increases, unexpected NSW Government costs and the cessation of Council’s Infrastructure Levy in 2022
• have a long-term financially sustainable future, including increasing its capacity to absorb future financial, extreme weather and growth shocks
• be in a stronger position to maintain and renew community assets, attract, and retain staff and meet community expectations • maintain existing highly valued services, including continuing to implement an existing program to increase responsiveness to resident and business enquiries
• improve public area maintenance and urban tree canopy outcomes.
Impact of the proposed special variation on ratepayers
The council proposed that rates would increase for all rating categories in 2024-25. It proposed that, on average:
• residential rates would increase by $163.18 or 15%
• business rates would increase by $1,106.22 or 15%
Ratepayer category Number of rate notices
Residential 29,428
Business 3,029
Total 32,457