GUNNEDAH Shire Council (GSC) is set to apply for a special rate variation due to concerns it will be unable to deliver and maintain services without a rise.
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Councillors voted on Wednesday to apply to IPART to exceed their current rate peg of 0.8 per cent by 1.7 per cent, to align with their budget predictions for the next few years.
GSC mayor Jamie Chaffey said the council usually based their financial plan on an annual rate peg of 2.5 per cent - meaning the 0.8 per cent peg would not be enough to cover the costs of council services such as construction works, sewerage and electricity.
"A difference of 1.7 per cent might not seem like a lot, but that adds up to $236,000 less in council's revenue in the next year, and $2.65 million over the next 10 years," Cr Chaffey said.
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Cr Chaffey said the calculations that IPART had used to determine the rate peg had been based on cost trends that had significantly changed.
"Instead of council costs going down they have, like expenses everywhere, skyrocketed," he said.
"Fuel has gone up, construction costs have gone up, labour costs have gone up and our Shire is growing.
"This is no time to be reducing our operating budget."
The decision to request for the once-off special rate variation comes as Tamworth Regional Council unanimously voted to also make an application to IPART earlier this month.
For Gunnedah residents the variation will equate to an extra 27 cents a week for those living in residential areas and 35 cents for those on rural properties.
But Cr Chaffey assured residents that a hardship policy was in place to assist ratepayers who have difficulty meeting their payments.
Due to the problems created by the record low rate peg, Cr Chaffey has called on IPART to review their methodology.
"That's an essential step in helping make sure councils across the State don't face this situation again," he said.
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