EXPLAINED: The SRV and how it will affect you

Not sure how the SRV might affect you? We've provided a simple explanation as to what it is, how it will impact the region and what will happen to your rates

FOR THE past three years, the Special Rate Variation has caused a lot of concern for many Clarence Valley rate payers, and with the Independent Pricing and Regulation Tribunal approving Clarence Valley Council's application, it will soon come into effect.

To help keep you informed, here is a brief explanation of what the SRV is, and how it will affect you.

What is the SRV?

The SRV, or Special Rate Variation, was an application made by CVC to increase rates by 8 per cent of the council's base rate, which will result in a permanent increase in rates by a cumulative 26 per cent over the next three years.

That sounds like a lot!

The IPART figures say an average Clarence Valley ratepayer will pay an extra $78 in 2018-19 and $253 cumulative incread over three years including the rate peg of two per cent.

The important thing to remember is the SRV increase will be calculated from ratepayer's base rates, which is the rate levied on the value of your land.

It's a common misconception the 8 per cent will be applied to the total rates bill, however it will only apply to the base rate, not the total rates bill.

So why did Clarence Valley Council do this?

According to CVC Mayor Jim Simmons, council's general fund has operated at a loss each year since amalgamations in 2004. As far back as 2015 Clarence Valley Council failed to meet NSW State Government regulations requiring local councils to be "fit for the future". While council did pass a number of IPART's categories, including efficiency which measures staffing levels against service, it was operating performance which led to the council's ultimate failure in IPART's Fit for the Future testing.

What other choice did they have?

Basically, council could either raise more money through rates, or save money through cutting jobs and services. 

"If IPART had not increased approved the SRV then there would be further serious reduction of services provided by council," Mayor Simmons said.

For more information, Caitlan Charles and Rob Burley from The Daily Examiner explain the SRV, what impacts it may have on the region and how it might affect you.

If you would like to see how the SRV will affect your rates, Clarence Valley Council have provided a rates estimator HERE.

Originally published as EXPLAINED: The SRV and how it will affect you