SRV last option before job and service cuts

It's either rate rises or imminent cuts to services and further job losses

Special Rate Variation breakdown. Picture: Caitlan Charles

THIS is Clarence Valley Council's last chance to save more than 50 jobs and prevent massive cuts to services.

The request to make a Special Rate Variation application will be made by council next month.

After many years of proposed SRVs going through council with rates reading higher than 40 per cent, the application for a cumulative 25.97 per cent rate variation to the Independent Pricing and Regulatory Tribunal (IPART) to meet the Office of Local Government's Fit for the Future guidelines is the best option according to Mayor Jim Simmons.

"Previously the SRV has been a lot higher than the 25.97 per cent ... I wouldn't go along with those sort of increases, this is still a high increase but it's a lot lower than what was proposed before," he said.

"Council either had to get its general fund in order (with the SRV)... or we'd have further cuts, which would have meant another 50 or 60 jobs going and also substantial cuts to services."

Councillors didn't debate or ask questions about the motion at Tuesday's council meeting, which Cr Simmons believes is because they have exhausted their options.

"I think councillors and the community have been through the process over a reasonably long period, there was a lot of consultation and discussion prior to the May/June period with the community to include the SRV as part of councils service delivery plans.

"Nobody likes a rate rise, but I just don't think that the community wanted those further service cuts and job losses."

However the decision to make the application is not the end of the process, with it likely to appear before council again next month before the proposal is lodged with IPART.

Council will apply for an SRV in mid-February before IPART makes its decision in May.

Cr Simmons said if IPART refused council's application, it would have no choice but to cut jobs and services to ensure they meet the Fit for the Future benchmark.

"I don't think council will have any option come June 2018," he said. "We will know certainly what it applies to from July 1, 2018, be it a SRV or if not there will be substantial cuts to services and jobs."

Council will now adopt the revised delivery program for 2017-2021 and 2017/18 operation plan, revised 2017/18 to 2026/27 long term financial plan and revised 2017/18 to 2026.27 asset management strategy. They will apply to IPART for an SRV of 8 per cent (including the assumed rate peg of 2.5 per cent) per year for three years, being a total increase of 25.97 per cent. This will improve the general funds sustainability. They will apply to IPART to increase the minimum ordinary rates by 8 per cent inclusive of the rate peg limit.

84% OF RESPONDERS OPPOSED TO SRV

CLARENCE Valley Council received 138 submissions from residents on the Special Rate Variation.

They range from suggesting pensioners will struggle with the rate rise to council using more volunteers and subcontractors to help save money. A number of submissions read 'I do not support council's proposed SRV' or similar.

One submission called for an administrator to be brought in because of too many staff, out of control spending and that residents shouldn't pay for an 'amalgamation experiment'.

Council distributed a survey to residents that found 882 of 3305 respondents didn't know council were considering an SRV before the survey. Most of the 3305 - 2782 - did not support the SRV.

To stay up to date on the special rates variation click 'SRV' below:

Originally published as SRV last option before job and service cuts