Federation Council Special Rate Variation Approved
Published on 17 May 2021
The Independent Pricing and Regulatory Tribunal (IPART) has today announced it has approved Federation Council’s Special Rate Variation application to increase general income by more than the rate peg amount of 2 percent from 1 July 2021.
Council applied for an increase of 8 percent, inclusive of the annual rate peg, to be retained permanently in its rate base.
Based on the extensive feedback, Council Officers recommended that the 2021/22 rate peg of 2 percent be applied based on the value of land, and the Special Variation of 6% be applied evenly to each property in the Federation Council area. This results in an increase to average residential rates of $1.26 per week to go towards the operating costs of the new Corowa Aquatic Centre. Following the proposed change, average residential rates in the Federation Council area will remain in the lowest 20 percent in the state.
In approving Council’s application, IPART imposed conditions requiring the additional income from the 6% portion, to be used strictly for the purpose outlined in the application, being to support the operational costs and ongoing asset life costs of the new $10 million Corowa Aquatic Centre.
Council’s application was one of 11 applications submitted by NSW councils to IPART for assessment in this year’s round.
Federation Council Mayor, Cr Patrick Bourke said Council was pleased to hear the outcome of its application and noted that the decision to submit the rate variation application was one that no Councillor took lightly.
“Councillors ultimately agreed that in order for our Council area to improve its livability for residents, grow our destination identity and ensure our assets, such as pools are maintained in-line with our community’s expectations, it was necessary to apply for a Special Rate Variation,” he said.
“In making the decision in February this year, Councillors considered a final report from staff which recognised the feedback from residents, who responded through public meetings, surveys and submissions during the lengthy consultation phases, supporting some level of rate increase above the rate peg amount to go towards quality infrastructure projects such as this. This is an asset that is already showing us that it has numerous benefits for today’s Federation Council community, and visitors, it will no doubt continue for future generations.”
Mayor Bourke said the Council was also continually undertaking extensive strategic financial and asset management work to ensure the Council had a financially sustainable future, whilst still allowing communities to grow and prosper and meet ratepayer’s service expectations.
“This decision marks a significant milestone in our Council and our community,” Mayor Bourke said.
“This decision is an important step in paving the way for a sustainable Council, that promises to deliver quality community infrastructure and services for all of our residents, and the Corowa Aquatic Centre is a fine example of our Council delivering on the community’s aspirations and priorities as detailed in Federation Council’s Community Strategic Plan, Our Community – Our Opportunity 2018-2028. A key word in our vision of Our Community – Our Opportunity is the word unity. This was crafted deliberately to reflect the creation of Federation Council from the merger of the Corowa and Urana Shire Councils, and the word unity is a central value that is critical to success in all we do as a Council, and within the community.
“Over recent years Council has concentrated on becoming stronger and more efficient, by saving money where possible through staffing restructures, sales of industrial land, continuing extensive work on strategic planning of Council’s business assets and land use plans including utilities such as water and sewer, seeking efficiencies in procurement and supporting local businesses, and better management and maintenance of assets. There is still much work to do, but Council remains committed, united, and focused on the journey ahead which will be informed by further extensive community consultation with our residents.”
The Special Rate Variation increase will be applied to the total general rate income that will be collected by Council for 2021/22. The final distribution to individual properties will be determined following completion of the rates harmonisation project. Rateable properties will receive a rates notice for the year commencing 1 July 2021 which reflects changes resulting from the Special Rate Variation and the implementation of a common rating structure across all properties in the Federation Council area.
View more information on IPART's website, including a summary on the decision.