Applying to IPART for a Special Rate Variation

Councillors resolved at the November 2023 ordinary meeting to proceed with a Special Rate Variation application to address financial sustainability and a forecast $79 million deficit over the next 10 years.

Council will apply to the Independent Pricing and Regulatory Tribunal (IPART) for a cumulative increase of 42.7%, including the rate peg, over three years commencing July 2024. This will consist of 7.9% in year one and 15% in years two and three and be permanently added to the rates.

THIS PAGE HAS BEEN RETAINED FOR COMMUNITY REFERENCE

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The business paper presented to Councillors included an extensive review of asset management plans, proposed capital programs, possible service level reductions, assessing the community’s capacity to pay and the results of the community engagement program conducted between August and October 2023.

Several key documents have been revised to reflect updated financial and asset data. These documents are now on public exhibition to seek community feedback, before final versions are presented to Council on 30 January 2024, to be adopted ahead of inclusion in the SRV application to IPART.

If an application to IPART is successful Councillors still have the final decision on whether to set the rates at the approved level. That decision is made in June 2024 as part of adopting the 2024-25 Operational Plan and budget.

Documents on Public Exhibition:

• Long Term Financial Plan 2023-33, revised November 2023
• Strategic Asset Management Plan 2023-32, revised November 2023
• Hardship Relief to Ratepayers procedure and
• Recovery of Unpaid Rates, Charges and Other Debts procedure.

Exhibition Period: Feedback on all revised documents is open from Wednesday 22 November 2023 to Friday 19 January 2024.

Impact of potential rate increase: 

The revised Long Term Financial Plan outlines in full the forecast deficit and impact of the proposed Special Rate Variation. Based on the average rate charges the table below shows the impact of the 42.7% rate rise over three years for each of the four rating categories.

Have a say on the revised documents:

Submissions can be made by the following methods:

1. Fill out our short survey.to add commentary on the documents. 
2. Make a more comprehensive, formal submission, using the online submission tool; by email to ksc@kempsey.nsw.gov.au or mailed to:

The General Manager
Kempsey Shire Council
PO Box 3078
West Kempsey
NSW 2440

Feedback is open from Wednesday 22 November 2023 to Friday 19 January 2024. 

What happens next?

Council will consider the feedback at an Extraordinary Meeting on Tuesday 30 January 2024, when the documents will be considered for adoption.

The community feedback from this public exhibition along with the engagement results of the SRV Investigation between August and October will be collated and included in the application to IPART.