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Shoalhaven Council to vote on controversial 12 per cent rate rise

Angry community members have voiced their frustration at a proposed 12 per cent rate rise for their NSW south coast region, saying the “Band-Aid” solution would not fix their dire financial situation.

Shoalhaven Council has suggested a 12 per cent rate rise. Picture: Supplied
Shoalhaven Council has suggested a 12 per cent rate rise. Picture: Supplied

A south coast council’s bid to mend their dire financial disaster with another rate rise has been labelled a “Band-Aid” solution by angry community members, who say constant variations to their rates is “clearly” not fixing the problem.

Shoalhaven Council proposed another rate variation just weeks after the newly elected body took office, with now mayor Patricia White revealing her main goal in the top job is to fix the grim financial situation she inherited.

In November last year, an independent economics group conducted a review into Shoalhaven Council’s finances, labelling them financially unsustainable and stating if changes were not made, they would lose millions across the next decade.

The report claimed the Covid-19 pandemic and natural disasters assisted in the situation.

Ms White’s new council have now proposed a rate rise as a way to assist the local government.

Shoalhaven mayor Patricia White. Picture: Shoalhaven Council.
Shoalhaven mayor Patricia White. Picture: Shoalhaven Council.

Three options were put to the community for their feedback, including eight per cent, 12 per cent or no variation at all.

More than 1900 submissions were received by residents, according to council documents, with some angered members slamming the rate rise proposition as a whole.

Shoalhaven Council chambers. Picture: Supplied
Shoalhaven Council chambers. Picture: Supplied

Resident Michelle Anton said constant rate rises were not working.

“They’re making us spend more, but we’re still having financial troubles,” she submitted.

“These rate rises are like putting a Band-Aid on a cut.”

Meanwhile, resident Daniel Stevens said the financial issues could be linked to council overstaffing, saying they needed to look into “their own backyard” before forcing residents’ hands into their pockets.

“We need to know where council is spending money, then we can determine whether we should be giving them more of ours,” he submitted.

“There’s been a few rate rises now and it’s clearly not working.”

Documents reveal 64.8 per cent of the 1966 responses opted for not changing rates, while 17.9 per cent opted for an eight per cent raise and 17.3 per cent opted for 12 per cent.

Despite being the least popular choice, documents reveal Shoalhaven Council has settled on a rate variation of 12 per cent.

The newly elected body are set to vote on increasing the rates during their ordinary meeting on Tuesday.

If voted through, the proposed 12 per cent rate variation will move to the Independent Pricing and Regulatory Tribunal, with Ms White previously telling this publication she was working hard to fix the area’s financial hardships.

She said the previous council canned 90 community projects in a controversial bid to save funds, revealing she wanted to avoid such a drastic money-saving measure at all costs.

“We can’t have that happen again,” she said.

“We need to find other ways to save money and get us back on the right track.”

Ms White also recently established the Financial Review Panel, a committee built of the mayor, elected councillors and financial experts from among the community to look over council’s spending and find ways to save money.

The committee will be officially sworn in at the same meeting on Tuesday.

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Original URL: https://www.dailytelegraph.com.au/newslocal/thesouthcoastnews/shoalhaven-council-to-vote-on-controversial-12-per-cent-rate-rise/news-story/c77f937894bca68eb541aac02591e3d5