City appeals for hike in rates

The City of Sydney Council has requested for a hike in rates to bolster income earnings.

The Independent Pricing and Regulatory Tribunal (IPART) has set the rate rise for local governments at 3.6 per cent. However, the Council has appealed for an additional 1.5 per cent hike.

A spokesperson for the Council said: “This is not an increase in rates. It is a continuation of a special purpose rate that has been in place for around a decade. The impact of it not being renewed would be a cut in income.

“The City of Sydney, over the past 10 years, has levied a 1.5 per cent rate level to fund essential programs to address homelessness, remove graffiti and to deliver CCTV footage used for the investigation and prosecution of criminals.

“This special purpose rate largely funds services that are State Government responsibilities, which the City has addressed to ensure our streets are safer.”

The City of Sydney Council is just one of many NSW councils, including Lake Macquarie, Newcastle and Tamworth, that says 3.6 per cent is not enough.

However, acting Local Government Minister Brad Hazzard told the ABC that higher rates would hurt more than they would help.

“[The councils] can’t simply come, time after time, with their hand out saying they want massive increases, because at the end of the day that comes from families.”

This year, IPART added a 0.4 per cent advance to help councils meet increases in their costs as a result of the introduction of the carbon price.

Chief Executive Officer and Full Time Tribunal Member of IPART, Jim Cox, said: “In setting the rate peg, we have sought to strike a balance between ensuring that councils can meet the increased costs of delivering services and ensuring that councils share efficiency gains with ratepayers.”

“We consider that local councils can continue to provide services more efficiently over time and that some of these gains should be shared with ratepayers.”

Mr Hazzard told City News IPART is by definition an independent body which was established to make decisions in council areas.

“That independence means that IPART’s decisions and determinations on matters such as special rate variations are made on a case-by-case basis,” he said.

“It is important to note that any special variations sought by councils must involve community consultation and have community support prior to the council applying to IPART.”

IPART stipulates that councils must complete applications for special variations by February 24.