Rate hikes approved for Lismore, Ballina

SPECIAL variations help councils generate additional income improve services, financial sustainability or to fund new capital works.

RATE rise applications made by Lismore City Council and Ballina Shire Council have been approved.

The Independent Pricing and Regulatory Tribunal today announced its decision to allow the councils to increase general income above the 2.3 per cent rate peg from July 1.

Ballina applied for a 15 per cent cumulative increase over two years to be retained permanently in the rate base. It was approved in full.

Lismore council applied for a 0.41 per cent single year increase to be retained in the rate base for five years (applies only to business rates). The application was approved in full.

Ballina Shire Council's general manager, Paul Hickey, said the approval would give the council extra funds to spend on essential infrastructure renewal works in areas such as road, stormwater, playgrounds and community buildings.

"It essential that we don't allow our existing asset base to deteriorate overtime due to insufficient funding," he said.

"Council will also continue its Healthy Waterways Program, which has the long term objective of improving the waterways in our Shire. 

"The works we have recently undertaken at Shaws Bay are testament to the benefits this can bring.

"In applying for the special variation Council wanted to ensure that the impact was affordable to our ratepayers and that our overall rates remained competitive to other councils."

Lismore's general manger Gary Murphy said while IPART had approved the rate rise, it did not mean it would be given the green light by council.

"While it is very positive news IPART has approved, is it up to council to decide if it will apply this," he said.

"It's one thing to have permission, it is now up to council to make a decision.

"It was hotly debated in the chamber during the process, with submissions made from a number of interested parties including the chamber of commerce.

"It will depend on the mood tonight and how councillors feel about the rate rise in consideration with other amendments they will put through including the business rate."

IPART chairman, Dr Peter Boxall said special variations were designed to give councils the flexibility to generate additional income above the rate peg to meet their specific needs, and have a direct impact on the rates paid by land owners.

"The rate peg is calculated each year to reflect changes in the standard operating costs of local government such as labour, electricity and construction works," he said.

"Councils requiring additional funds to improve services, financial sustainability or to fund new capital works can apply for a special rate variation after consulting with their communities and meeting other criteria set by the Office of Local Government (OLG)."

Dr Boxall said individual councils now had to determine how to collect rate revenue across different categories of ratepayers, and how the special variation increase would be distributed amongst ratepayers.