Special variation to rates approved

MEDIA RELEASE

Improvements to roads, footpaths, environmental management, playgrounds, kerbs and gutters, seawalls and parks and reserves will be delivered in Hunters Hill, following an independent determination of rating options for 2022-23 and beyond.

The Independent Pricing and Regulatory Tribunal (IPART) has announced approval of a special variation to rates application from Hunter’s Hill Council to increase income above the rate peg.

The rate peg is the maximum percentage amount a council can increase its income from rates. Councils that need additional revenue can apply to IPART for increases above the rate peg, known as special variations.

Hunter’s Hill Council had an application approved for a permanent increase of 16.9% in 2022-23 and 7.8% in 2023-24 – that is a 26.02% cumulative increase over two (2) years, applied to residential and business ratepayers.

This will replace two expiring special variations, complete the Council’s capital works program, reduce its asset backlog and improve its long-term financial sustainability.

IPART considered community concerns along with the Council’s demonstrated need for additional revenue to ensure financial sustainability and service provision.

Hunters Hill and other councils with approved special variation applications were required to consult with the community, establish that the impact on ratepayers is affordable, and make productivity and cost savings.

IPART Chair Carmel Donnelly said the conditions for the special variation approvals required Council to spend the additional income on the specific purposes outlined in its application.

Council is also required to report to the community about how its additional revenues are spent.

Hunters Hill Mayor Zac Miles said Council was facing the challenge of balancing community expectations with future financial sustainability and that this IPART decision makes up a component of the funding mix for council to deliver balanced budgets.

Other challenges for Hunters Hill include not having a broad base of properties through which to divide the rate base, and large areas of non-rateable land such as churches, schools and public spaces.

Being an older local government area, Hunters Hill also has a large amount of ageing infrastructure to maintain.

The special variation to rates would allow Council to deliver a higher level of asset renewal and maintenance.

MEDIA CONTACT: Jacqui Jones, Communications Officer. Phone: (02) 9879 9400

Email: jonesj@huntershill.nsw.gov.au

Related: Special variation to rates project page.

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