SHOALHAVEN residents have been enjoying a rates holiday for many years, according to Shoalhaven City Council’s director of Corporate and Community Craig Milburn.
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“I know I’ll cop it for saying it, but if you look at the figures for comparable local councils, Shoalhaven’s rates are the lowest,” he said.
Mr Milburn said this was the case even taking into account the average household income.
In a briefing with the South Coast Register, Shoalhaven Mayor Joanna Gash, general manager Russ Pigg and Mr Milburn explained why they believed the need to improve the bottom line to meet the NSW government’s Fit for the Future program.
“This is a mandated program with seven benchmarks to be met by all councils in NSW,” said Cr Gash.
“They are difficult benchmarks to meet for any council, and the government’s offered no carrots to meet them. The Local Government Association is constantly talking with the government about how difficult it is to meet all seven benchmarks.
“The Shoalhaven already meets three of the benchmarks, and is on track to meet six by 2022.”
She said the most difficult benchmark involved asset maintenance.
Mr Milburn explained that the government saw asset depreciation falling in a straight line, but in reality depreciation was fairly flat for most of an asset’s life.
“The way the NSW government measures depreciation markedly increases our costs. We have to draft a budget that allows us to meet these costs now and in the future.”
He said council’s budget is already $11-12 million in the red every year.
“We have to draft a budget that allows us to meet depreciation as well as build in calculated costs for future depreciation.”
Mr Pigg said geography meant Shoalhaven City Council faced a duplication of assets, diversity of services and demands from different demographics.
“Shoalhaven comprises 49 towns and villages, and the state government’s seven benchmarks makes no allowance for the size of the Shoalhaven compared with much smaller local councils in Sydney like Manly and Ashfield,” he said.
Cr Gash said the Shoalhaven faced unique challenges, and a rate rise combined with the sale of some assets and improving internal efficiency was the way to go.
Cr Amanda Findley in principle saw no problem with rate increases but said it was important the community was part of the discussion.
“A dedicated website for the NSW government’s Fit for the Future document, for example, would help give people the background to the need for rate increases,” she said.
“Active members of community consultative bodies up-to-date with issues understand there is a problem with the budget that needs to be addressed.”
Other councillors such as Andrew Guile and Mark Kitchener have made known their disagreement.
Cr Kitchener said he was stunned by the mayor’s “sleight-of-hand manner in which the Shoalhaven City Council will become Fit for the Future”.
“With scant community consultation Team Gash proposed to commit future councils to more than a 20 per cent rate rise,” he said.
“Why would this strategy prove to be more palatable to future councils if it is unpalatable to the current council?”
Cr Gash said the populist approach taken by some councillors made it harder to discuss this with the community.
“I won’t lead this council into further debt, something I’ve promised the community from the start. I don’t want to be a populist; I just want the community to know where we’re at.”
Cr Gash said she believed commonsense would win out as long as the community was properly informed about the choices facing council.
“We’re meeting with community consultative bodies this week, and have planned three community meetings.”
Mr Milburn pointed out council had already saved $4 million internally through the Transformation Taskforce.
“We’ve removed 20 per cent of senior positions, reduced overtime and reduced the number of directories from six to four.”
Mr Milburn indicated that even with rate increases there would still be pensioner rebates.
“And council has a hardship policy where those having trouble paying rates can get in touch with us so we can come to an arrangement.
“But this is a discussion we need to have now, otherwise our children and grandchildren will face a massive deterioration of assets.
“The NSW government wants every council to be financially responsible, and there’s a gap we have to cover.”