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24 April 2023

Council seeking community feedback over Budget shortfall

Council faced with dilemma: raise rates or reduce services

Ratepayer

Ratepayers are being asked to provide feedback on whether Council should fund a budget shortfall through raising rates or reducing services.

Tweed Shire Council is seeking community feedback on how best to make up a $1.6 million shortfall in the 2023/24 Budget, with two options placed on public exhibition.

Council is seeking to apply for a 2.35% rise in general rates (known as a Special Rate Variation or SRV) in addition to the 4.0% pegged rate rise already approved for the Tweed by the Independent Pricing and Regulatory Tribunal (IPART) – an independent body that determines the level of rates able to be collected by councils across NSW.

As part of this process, Council has called for community input on whether they support the SRV or would prefer to see Council find the additional funds required by reducing service levels.

Mayor of Tweed Shire Chris Cherry said the community is being asked to provide feedback ahead of a Council decision on the issue scheduled for the June meeting.

“Just like rising living costs are hitting the hip-pockets of everyday Australians, they are also hitting Council’s bottom line,” Cr Cherry said.

“Council needs to find an additional $1.6 million in our budget for the next financial year to meet the rising costs of delivering services and to ensure our information systems are up to date and secure.

“We are asking residents if they would support a small rate rise or opt for a reduction in services instead. This feedback will inform Council when we come to vote on this issue at the June meeting, in what is arguably the most important decision we will make this year.”

The extra costs Council needs to fund include:

  • compliance officers previously funded by environmental enforcement levies recently removed by the NSW Government

  • upgrading core IT business systems to make it easier and safer to do business with Council 

  • additional cyber security 

  • increased insurance premiums.

An unprecedented growth in development applications since the COVID-19 pandemic is another challenge, with additional staff required to help reduce processing times.

Council can fund this extra $1.6 million in one of two ways:

  • Increase Council’s revenue through a Special Rate Variation by increasing rates by an additional 2.35% above the rate peg increase of 4%. The 2.35% increase represents an average rate rise of $37.55 for the year — or on average of 72 cents a week — per ratepayer.

  • Option two is to look at ways to reduce costs. The only way we can do that is to reduce some of Council’s service levels to the community.

Some of the services that may be affected include the potential to close Kingscliff Library, reduce road and park maintenance levels including pothole repair, reduce opening hours at Council’s three aquatic centres, reduce the scale of Council’s new animal pound – among other service reductions.

Cr Cherry urged all residents to provide their feedback by taking part in a survey on the issue.

“Council is now asking the community what you think about these two options: Would you accept a small increase in rates so Council can maintain current service levels to the community, or would you prefer Council to reduce its current level of service?” she said.

“I urge all of you to have your say on the options. If you have never given your input into a Council decision before, this is the time to do it.”

Visit yoursaytweed.com.au/srv to find out more details and tell us what you think before 4 pm on Friday 26 May.

You can also register for upcoming Community Conversations where there will be an opportunity to ask questions. Community Conversations will be held in Tweed Heads on Monday 15 May and in Murwillumbah on Tuesday 16 May. Register to receive more details via the link on the Your Say Tweed page.

To find out more about how Council rates are calculated, visit tweed.nsw.gov.au/ rates-explained and watch the animated video.

For more information on the Draft 2022-2026 Delivery Program and 2023/24 Operational Plan, including more details on the SRV, view the report presented to Councillors in their meeting on 20 April 2023 at tweed.nsw.gov.au/council-meetings and tweed.nsw.gov.au/srv-addendum.

Downloads

Photo 1: Ratepayer
Caption: Ratepayers are being asked to provide feedback on whether Council should fund a budget shortfall through raising rates or reducing services.

Connection to Council’s Community Strategic Plan:

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Tweed Shire Council wishes to acknowledge the Ngandowal and Minyungbal speaking people of the Bundjalung Country, in particular the Goodjinburra, Tul-gi-gin and Moorung – Moobah clans, as being the traditional owners and custodians of the land and waters within the Tweed Shire boundaries. Council also acknowledges and respects the Tweed Aboriginal community’s right to speak for its Country and to care for its traditional Country in accordance with its laws, customs and traditions.
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