Glen Innes Severn Council has acknowledged the determination by the Independent Pricing and Regulatory Tribunal (IPART) to approve Council’s Special Rate Variation (SRV) application of 48.3 per cent over three years.
General Manager Bernard Smith said the determination represents an important step in Council’s path towards long-term financial sustainability and will assist Council in addressing the ongoing financial pressures facing local government.
“The approval provides Council with an opportunity to strengthen its long-term financial position and continue delivering essential infrastructure, services and community outcomes that residents rely upon,” Mr Smith said.
“Like many regional councils across New South Wales, Glen Innes Severn Council has experienced sustained increases in operating costs, asset renewal requirements and service delivery pressures, while revenue growth has remained constrained over many years under the rate pegging system.”
“Without action, these pressures would continue to impact Council’s capacity to maintain infrastructure, renew ageing assets, respond to community needs and meet its long-term obligations.”
Mr Smith said the SRV was not pursued lightly and followed detailed financial analysis, strategic planning and extensive community consultation.
“We recognise that any increase in rates places additional pressure on households, businesses and primary producers, particularly in the current economic environment,” he said.
“Council carefully considered a range of options and has already implemented a number of measures aimed at improving financial performance, operational efficiency and organisational sustainability.”
“The SRV forms part of a broader program of financial reform and improvement designed to place Council on a more sustainable footing into the future.”
Mr Smith said it was important for the community to understand that the approved Special Rate Variation will be implemented progressively over three years as part of Council’s Long-Term Financial Plan.
“The approved SRV does not result in a 48.3 per cent increase in a single year,” Mr Smith said.
“The 48.3 per cent figure represents the cumulative increase including the impact of compounding over the three-year application period and includes annual rate peg increases approved by IPART.”
Under the approved application, Council’s general income will increase by:
- 21.5 per cent in 2026-27;
- 12.0 per cent in 2027-28; and
- 9.0 per cent in 2028-29.
“These increases are designed to progressively improve Council’s financial sustainability while providing certainty and transparency to the community.”
The additional revenue will contribute to: - Maintaining and renewing critical infrastructure assets;
- Delivering essential community services;
- Improving Council’s long-term financial resilience;
- Meeting increasing operational and compliance obligations; and
- Supporting strategic economic development initiatives that contribute to population growth, investment attraction, job creation and long-term prosperity across the Glen Innes Severn region.
Mr Smith said the SRV is only one component of Council’s broader financial improvement program.
“Achieving long-term financial sustainability is not solely about increasing revenue. It also requires Council to continue improving the way it operates, prioritising expenditure, identifying efficiencies and ensuring every available dollar delivers value to the community,” he said.
Mayor Margot Davis thanked community members who participated in the consultation process and acknowledged the impact the decision will have on ratepayers.
“This is not a decision that Council has taken lightly, nor one that our community has asked for but is a necessary and responsible decision as a result of chronic and systemic underfunding of Councils over a very long period of time,” Cr Davis said.
Cr Davis said Council has a responsibility to make decisions that secure the long-term future of the Council and the community it serves.
“This decision reflects the difficult balance between responding to current pressures and planning responsibly for the years ahead.”
Cr Davis said Council remains committed to accountability, transparency and ongoing financial reform.
“The approval of the SRV is not the end of the journey towards financial sustainability,” she said.
“Council will continue to focus on improving efficiency of service delivery, strengthening governance, delivering value for money and ensuring that every dollar collected is invested wisely for the benefit of our community.”
“We will also continue to advocate strongly for broader reform of local government funding, the return of the Federal Assistance Grants to 1% of Federal tax revenue (currently 0.49%) and the ongoing issue of cost shifting, recognising that many regional councils face similar challenges in a system that is broken and puts inequitable pressure on local government.”
Council will provide further information to the community regarding the implementation of the approved Special Rate Variation as part of the upcoming rating period.
