2014/17 Special Rates Variation (SRV)
The SRV application was lodged with the Independent Pricing and Regulatory Tribunal (IPART) on 24 February 2014. The Community was informed of IPART’s determination late in June 2014.
The rationale for the proposed rate increases was to secure a financially sustainable position for the Council for both the short and medium term. This would enable Council to continue to fund operating services that otherwise would have been reduced and at the same time improve Council's ability to fund its road renewal work into the future.
IRIS Research was commissioned by Council to conduct a comprehensive survey among the area’s residents in December 2013. The survey sought to gauge community support and reaction to the proposed rating options.
The key finding of the survey was the overwhelming majority (85.9%) of residents in the Junee Shire supported a special rate variation to cover the gap in funding for renewal and reseals of roads, rather than the alternative of reducing the levels of services to other areas.
Council’s Long Term Financial Plan includes a number of different financial scenarios that will inform the public exhibition of the Draft Combined Delivery Program Operation Plan 2014/18 in May this year. Should IPART refuse the SRV then the financial scenario DECLINE is likely to take effect on 1 July 2014 which includes a number of reductions in level of services.
The SRV application that was lodged in February includes a slight reduction in the proposed rate increase for 2014/15. The Gross impact will now be 11.9% instead of 13.2% which was the figure used during the Community Consultation in 2013.
This SRV application is for the three year period 2014/17 and is inclusive of actual and assumed rate pegging amounts.
- 2014/15 SRV – Increase from previous year 11.9%. Taking into account a 2.3% rate peg, the removal of the 2009 expiring SRV ($257,249) from the rate base and reapplying the expiring 2009 SRV of 9.6% back to the rate base. The SRV Nett Increase for 2014/15 from the previous year is 2.6%.
- 2015/16 SRV - Increase from previous year 9.5%. Assumed rate peg of 3%.
- 2016/17 SRV - Increase from previous year 9%. Assumed rate peg of 3%.
Council’s original budget 2013/14 for its own roadworks expenditure excluding the roads component of the Federal Assistance Grants (FAGs) was $870K. At this level the Council is unable to meet its Roads to Recovery grant requirements. This is critical in maintaining our local road network.
If this SRV is successful, Council's own roadworks expenditure after deducting the roads component of the FAGs is budgeted to increase in the following years to:
- 2014/15 $996K
- 2015/16 $1.18M
- 2016/17 $1.35M
The public are invited to access the IPART website for additional information. Alternatively, the application is available below: