Three community-represented groups including the Federation Ratepayers Incorporated are requesting late changes to Federation Council’s special rates variation (SRV) proposal before it is lodged with the Independent Pricing and Regulatory Tribunal (IPART) before Friday, February 3.
The council-appointed Rates Review Committee does not want to see, under any circumstances at this stage, the SRV totalling 60 per cent increase proposed for ratepayers by council over the next four financial years.
The committee’s seven members met in Urana on Monday, January 9 to reject outright the proposed increases of 19 per cent, 17 per cent, 14 per cent and 10 per cent, from 2022/23 to 2026/27. Council was represented by director corporate and community services Jo Shannon and Cr David Fahey OAM.
Federation Council’s application in its entirety will be put to its next Tuesday’s monthly meeting (January 31) for councillors’ endorsement to submit to IPART.
The 60 per cent increases sought are on top of the annual increase by the NSW Government (2.5 per cent for 2022/23).
Council has consulted widely with the Federation Council community, commencing its formal community awareness and engagement program on the current Special Rate Variation proposal in May 2022. Council’s consultation included a series of presentations and drop-in sessions across the townships of Corowa, Howlong, Mulwala and Urana.
The January 9 meeting in Urana lasted almost two hours and was chaired by former councillor and deputy mayor of Corowa Shire Council Derek Schoen.
“The motion passed was that this committee in no way support council submitting a SRV application to IPART until such time that the volunteer rates advisory committee appointed by Federation Council can substantiate such an application,” Mr Schoen said.
“Beforehand, committeeman Peter Seeliger foreshadowed an amendment motion seconded by me that council be supported in a 19 per cent rate increase in the first year allowing time for additional process to take place for any further increase. But that was defeated.”
Mr Schoen said that Ms Shannon; “as always acted very professionally answering questions and providing information”.
“I have emailed Jo asking that due to the January meeting discussing the SRV it is of greatest importance to have our minutes with the resolution in the business paper. I also indicated that I would be happy to address the council.”
The rates committee will reconvene upon an indication of council’s reaction and discuss its response.
In view of the large rate increases, the rates committee believed insufficient community consultation took place according to Mr Schoen.
“Concerns were raised that council’s only option looked at was to raise a SRV - there still has been no rationalisation of the amalgamated councils’ assets, buildings and staff to achieve some of the savings envisaged by the amalgamation of the two councils,” he said.
“The committee has serious concerns of the currency of the Morrison Law report into the capacity to pay report the post covid and now the serious escalation in the cost of living making large parts of the report questionable.
“The SRV effects on the capacity to pay will be compounded with the indication of also large increases in the service charges in relation to water, sewage and waste.”
Mr Schoen said he joined the rates committee to be part of the community consultation process and ensure that the communities views are heard and actioned.
“If the only option is to proceed with the SRV we need to feel comfortable that all options and inefficiencies have been taken into account to ensure that the money raised is not neutralised by the same causes that has brought council’s finances to this point,” he concluded.
Another former Corowa Shire councillor, Peter Seeliger and Mulwala Progress Association President Robert Purtle OAM met last week to talk about the SRV, hearing first-hand from ratepayers who say they are battling with everyday living expenses, let alone having to worry about the potential for big rate rises for at least the next few years.
“Pensioners and low-income people approach us and tell us about their hardship,” Mr Seeliger, Federation Council’s Citizen of the Year in 2018, said.
“I believe councillors should investigate the ramifications of the proposed SRV on pensioners and low-income earners in their respective towns.
“Also, I’d like councillors to say they have investigated the financial position of Federation Council ratepayers and that they are convinced that no hardship will occur in their area.”
Mr Seeliger would like to see two petitions be presented to IPART: one from pensioners and one from low-income earners, stating the proposed increases will cause “unrepairable damage to their financial situation” and that they have no means to increase their financial status.
Supporting Mr Seeliger, Mr Purtle said over 40 per cent of Mulwala ratepayers are either pensioners, low-income earners or retired people. “These proposed rate-hikes will be detrimental to nearly 50 per cent of the town’s population. Many are finding it unaffordable to live in Mulwala.”
Mr Purtle and Mr Seeliger have been approached by several town residents expressing great concern about the double-digit rate increases being sought.
“I’ve had several pensioners say to me with the increases in insurance, gas, electricity – everyday cost-of-living pressures – they’ve got to find extra money without an income and they’re scared,” Mr Purtle said.
“Yes, they should have attended council sessions about these increases and the attendances are poor. But some can’t attend in person.”
For many years, Mr Seeliger has been very interested in the calculation and application of rates and considers council documentation to always lack detail, talking about averages and percentages rather than converting to dollars and cents.
“The average shire’s residential rates can be much lower than the true picture for properties – including waterfront properties say in Mulwala – when properties in outlying villages such as Urana are thrown in,” he said.
“Whenever there’s an increase, the percentage increase has such a big difference in increase on those higher valued properties.”
Mulwala Progress Association will formally express its concerns and seek variations to council.
Council not listening
Former long serving Corowa Shire Mayor Gary Poidevin said council needs to listen to not only its residents but also the ratepayer groups.
“The ratepayer groups are saying no, the Rates Review Committee are saying no and ratepayers are saying no we can’t afford this rate rise,” Mr Poidevin said.
“Despite this, council is still pushing ahead with their request to IPART.
“Council has gone about the whole process the wrong way by asking ratepayers what they want and building an empire too big to maintain based around these wants.
“It’s no good having wants if you can’t afford to maintain them. Especially when on top of these rates, you have to add water, sewer, and garbage rates.
“In my time the rates notice was annual, and all services were included in the notice. You didn’t have these extra charges sneakily added on top.”
Mr Poidevin said he agreed with the Federation Ratepayers Incorporated group who called for an external independent audit of council expenses.
“It is time to look at employment and vehicle numbers. It seems to be top heavy. There’s not enough transparency.”
Semi-retired Corowa farmer Howard Scheetz said the proposed rate hikes would affect many Corowa pensioners and retirees lives “drastically”.
“We are not getting the return on roads and services,” Mr Scheetz told the Free Press.
“A lot of people here in town are unaware just how much of an impact it will have on their lifestyle. The cost-of-living pressures are already being felt by many and this will add to the financial burden.
“Council are not listening to the ratepayers and councillors are just going along with it.”
Mayor’s strong defence
Council embarked on its current and ongoing financial sustainability journey over three years ago when CT Management was engaged in mid-2019, to lead in the development of Federation Council's first new Long Term Financial Plan (LTFP).
The first version of this plan was adopted in 2020/21 and has been updated each year with a draft exhibited, and also updated at other stages as required through each year, for example to reflect new major grant income being received, including for new or updated projects.
Through many engagement forums including community satisfaction surveys, council has been encouraged to maintain existing services, and of course improve service levels of some of our services that most need it, such as the road network, where possible.
Federation Council Mayor Pat Bourke strongly defended council’s proposed SRV application and public consultation regarding the hefty rate increase.
‘Council has since its inception in May 2016, been on a continuous improvement journey, balancing the immediate running of an entirely new organisation delivering the day-to-day services of the two former Corowa and Urana Councils from day one, with the demands of significant new funding, and ensuring a sound financial base into the future,” he said.
“Council engaged extensively throughout this process and at its June 2022 meeting, unanimously supported Scenario one within the LTFP, which contains a SRV that was publicly exhibited.
“The intent of this SRV is to provide capacity for council to address the asset management demands of existing infrastructure over an extended period and support council to deliver its 45 services including improving the levels of service in some key required areas such as roads.”
In the LTFP, Federation Council adopted the scenario that provides a $48 million annual operating program and $18.6m capital program for 2022/23 and a $104m total capital program over the 10 years. It contains rate increases at 2.5 per cent for 2022/23, followed by 19 per cent, 17 per cent, 14 per cent and 10 per cent,
“Whilst May 2022, marked the start of the formal community awareness and engagement program, residents were first made aware of the need for further Special Rate Variations during the 2021 – 2022 IP&R and engagement process,” Mayor Bourke said.
“We have been raising preliminary awareness with the community in media interviews and communications prior to the 2021-2022 Budget and IP&R engagement period.
“This was consistently informed to the community as part of council’s ongoing updates about council’s financial sustainability journey and messaging about the focus of increasing council’s income to support the long term financial and service sustainability of council.
“The community has had multiple opportunities to comment on this Special Rate Variation proposal - over the past 12 months especially- and council has responded through answering direct customer queries, meeting with local residents/groups, section 355 committees, public meeting hosting and attendance at community hosted meetings, frequently asked questions development, media enquiries and undertaking proactive communications.”
