SHOALHAVEN City Council copped a considerable backlash when it last hiked rates by 8 per cent so the mere suggestion of a possible 13 per cent rate rise on the back of that is likely to make the blood drain from councillors’ faces.
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The so-called MG report into council’s financial sustainability argues that council could mount an argument for such an increase, given its size, infrastructure backlog and comparatively low rates yield when stacked up against local government areas of a similar size.
It also argues that fees and charges could be lifted to increase revenue.
Deputy mayor John Wells is somewhat dismissive of the report, saying it’s exactly what one would expect from prudent financial advisers but what it argues for is extremely unlikely. The implication is that councillors will remain deaf to prudent financial advice. And that is surely worrying.
No one in politics likes arguing for increasing taxes or, in council’s case, rates. To do so is often hip-pocket suicide. However, as difficult as it might be, it is necessary to have a conversation with the community about what it expects from its local government and what it is prepared to pay for those services.
The MG report argues that, based on average household income, local ratepayers can afford a rates increase in the order of 13 per cent.
What it doesn’t address is whether the politicians elected to govern the city in a prudent and sustainable manner can afford the political fallout that will descend if they push for such a hike.
