Why are your rates going up? There are fair reasons for the increase and it is more complicated than the current rate of inflation or CPI.
The Town & Country Journal reported on the rates rise in a recent issue which prompted the SDRC to explain the 3 to 7 percent rates rise most households can expect in the next financial year.
A Council spokesperson was keen to point out that council works hard for your money.
“Council delivers a wide range of essential services and infrastructure, including roads, water, waste, libraries, parks, planning, and community programs. Some costs are visible while others – like maintaining infrastructure and service administration – are less obvious but equally important.”
There is widespread agreement that the Federal and State governments across Australia expect local governments to provide increasing services with less funding. In fact, the current funding arrangements for local governments are an issue that is one of the highest priorities for examination and change.
The spokesperson continued.
“ Like households, Council is facing rising costs across the board, including fuel, materials, electricity and insurance. Despite this, we continue to work hard to keep rate increases modest while maintaining the services our communities rely on. Rates have been increased to fund operational expenses whilst maintaining existing services. Current cost pressures include a ten per cent rise in insurance premiums, a seven per cent increase in electricity charges, and a seven per cent rise in depreciation costs, along with a six per cent increase in software and licensing expenses. While the March CPI has been 2.7 per cent, the building cost index that reflects Council’s cost of building and maintaining infrastructure is approximately 12 per cent.”
Anyone considering building a house or a shed since COVID understands just how high prices for construction have risen.
“For the previous two years Council kept the general rate increase below the increase in its costs during the height of the spike in inflation. If Council continues along this path it will adversely affect the services we deliver such as maintaining our roads.”
Council is aware that “residents are under financial pressure” and only raised rates to deliver essential services.
Anyone having difficulty paying their bill is encouraged to contact Council to discuss payment options with a supportive team member. In the meantime, “council would like to sincerely thank the community for participating in the recent open information sessions.”
“The feedback has been instrumental in helping council shape a responsible and community-focused budget.”
