Proposal for a Special Rate Variation

For Immediate Release - Monday 9 February 2015

Community Briefing Sessions were held recently to present details of proposed increases to the General Rates for a 5 year period commencing 1 July 2015.

A Special Rate Variation is proposed to be submitted to the Independent Pricing and Regulatory Tribunal (IPART) for a 7.5% General Rate Increase which include the annual rate pegging increase determined by IPART. For 2015/16 the rate peg is set at an increase of 2.4% and an additional 5.1% increase will make up the total 7.5% annual increase.

Over a 5 year period the accumulated increase will be 43.56%, which includes an assumed rate peg increase of 15.25% and an additional increase of 28.31%.

This will impact ratepayers as follows:

Annual Rate Increase(%)   2015/16 2016/17 2017/18 2018/19 2019/20 Cumulative
Rate Peg Increase Only   2.4% 3.0% 3.0% 3.0% 3.0% 15.25%
7.5% Special Rate Variation   5.1% 4.5% 4.5% 4.5% 4.5% 43.56%
TOTAL ANNUAL INCREASE   7.5% 7.5% 7.5% 7.5% 7.5% 43.56%
               
Average Rates Current 2015/16 2016/17 2017/18 2018/19 2019/20 Avg. Increase
RESIDENTIAL              
Annual Rate $556 $598 658 $723 $796 $875  
Annual Increase 0 $42 $60 $66 $72 $80 $64
Weekly Increase 0 $0.80 $1.16 $1.26 $1.39 $1.53 $1
               
FARMLAND              
Annual Rate $1,585 $1,704 $1,875 $2,062 $2,268 $2,495  
Annual Increase 0 $119 $171 $187 $206 $227 $182
Weekly Increase 0 $2.29 $3.29 $3.60 $3.97 $4.36 $4.00
               
BUSINESS              
Annual Rate $771 $829 $912 $1,003 $1,103 $1,214  
Annual Increase 0 $58 $83 $91 $100 $111 $89
Weekly Increase 0 $1.11 $1.59 $1.76 $1.92 $2.13 $2.00

Council advised the Community that it aims to raise approximately $1.46 million funding from the rate increase, and it will be used for the following purposes:

    Est. 5 year spend
1. Provide additional funds to supplement grading on all rural unsealed roads 15% - $219,440
2. Upgrade and improve heavily utilised rural freight transport routes
-Dog Rocks Road   23.0km
-Lowes Mount Road   19.3km
-Hazelgrove Road   17.2km
-Beaconsfield Road   38.5km
-Sewells Creek Road   23.0km
-Campbells River Road   22.8km
-Burraga Road   25.0km
-Abercrombie Road   71.5km
80% - $1,170,343
3. Develop asset based data sets 1% - $58,517
4. Repayment of Local Infrastructure Renewal Scheme 4% - $16,629

Non-road infrastructure will continue to receive planned maintenance and any major work required will be addressed on an as needs basis.

95% of the additional funding is proposed to be spent on grading of minor unsealed roads and to upgrade and improve major rural transport routes. Details of the expenditure on these roads will be presented during the public exhibition of the draft Oberon Community Strategic Plan 2015 during May and June this year.

For more information please visit our website www.oberon.nsw.gov.au

ENDS