Federation Council confirms 17% rate rise

It follows last financial year’s SPR of 19% and was unanimously agreed to by councillors at their latest monthly meeting on April 30.

Council had applied for a cumulative 74.59% SRV over four years (including the particular maximum rate peg set each year for Federation Council) to commence on 1 July 2023 (19% in 2023/24, 17% in 2024/25, 14% in 2025/26 and 10% in 2026/27).

But IPART’s decision was in respect of two financial years, 2023/24 and 2024/25.

A temporary increase means that in 2025/26, general rates will revert to the amount that would have been permissible under the rate peg, (4.2% in 23/24 and 4.5% for 24/25).

“That is assuming no further SRV application is made or granted, to lock those two temporary increases in, and gain any further increases,” deputy general manager and chief financial officer Jo Shannon stated in her report to council.

“It is likely that council will, as per the planned scenario in the current adopted Long Term Financial Plan, re-apply in 24/25 to lock in those two temporary increases, and gain a further increase to continue to address council’s financial sustainability challenges.”

Council’s flagged intentions would be subject to further engagement with the community as part of the re-application should council endorse such action.

Federation Council’s 2024/25 budget emphasis includes recommendations from the recent independent review by Professor Joseph Drew of the University of Newcastle, renewal of existing assets not new assets, particularly with roads and drainage, and focus on asset maintenance.

Council is budgeting to receive $51.67 million in operating income in the financial year 2024/25, an increase of $5.39 million or 12% on 2023/24 budgeted income.

It is inclusive of 17% temporary Special Rate Variation increase for 2024/25 and expected increases to Financial Assistance Grants and Roads to Recovery funding.

The draft Revenue Policy for 2024/25 contains proposed changes to rates, fees and charges to apply from July 1, 2024. It is proposed to increase some fees by greater than inflation in order to reduce the net cost to council and therefore the contribution from general rates. It is a key recommendation from the Independent Review undertaken by the University of Newcastle.

Affected fees and charges include water supply access and usage, sewer access, cemeteries and Urana newsletter advertising.

The domestic waste kerbside collection fee will increase by 11% for existing serviced properties and by 33% for northern properties transitioning from a one-bin service to a three-bin service. The waste facility management charge will remain unchanged at $65.

Some service level changes are proposed in draft plans for 2024/25. Increased service level would apply regarding asset renewal with 100% of recommended road and other General Fund infrastructure asset renewal recognised per the Strategic Asset Management Plan.

Total capital program is estimated to cost $240 million over 10 years; $1 million building preventative maintenance program over 10 years; providing additional resourcing for improved planning and building services with projected total of $7 million over 10 years.

Reduced service level would apply to community recognition weeks, such as Youth Week, Seniors Week and Volunteer Week reducing allocation of $150,000 over 10 years, $420,000 less budget provision for Parks and Gardens over 10 years and ceasing service in Community Grants Program by removing allocation of $600,000 over 10 years – the latter being disagreed to by Cr David Longley.

It is proposed the following be added for delivery in 2024/25:

> Investigate Alternate Heavy Vehicle route for Urana;

> Implement mandatory traceability and electronic identification requirements for sheep at the Corowa Saleyards utilising available funding.

> Explore opportunities to expand the use of the redeveloped saleyards site including new building.

> Review and update Firewood Collection Mapping; progress SV Application 25/26 to support the financial sustainability of council.

> Review water and sewerage service pricing to meet sound pricing and prudent financial management principles.

> Progress review of pricing to send better price signals.

> Review existing rating categories to ensure equitable collection of income.

> Progress recommendations from Independent Review following council adoption of recommended actions.

Resolution and community meetings

At last week’s April meeting, council endorsed the draft combined Delivery Program 2022-2026 and Operational Plan 2024-2025 (including draft Annual Budget 2024/2025), and updated 10 year Long Term Financial Plan and Statement of Revenue Policy, to be placed on council's website and public exhibition seeking community feedback for a period of 28 days (May 1 to May 28).

The final documents are to be presented for council’s June 2024 ordinary meeting (June 25) with a report detailing community feedback received and any proposed changes to the draft documentation, and adoption of a final set of plans for implementation from July 1, 2024.

In adopting a draft suite of documents, council will be able to gauge the community views via the many community engagement opportunities available.

After exhibition council will then receive a final version of the documents with any changes outlined, including a list of submissions and any changes proposed as a result of these.

As advised in The Free Press and Yarrawonga Chronicle of April 24, and in Federation Snippets, council consultation with the community is as follows: