Local government: Federation Council proceeds with bid for 69.94 per cent rate increase

After charging historically low rates for decades a southern NSW rural council area is seeking a massive increase to stay afloat.

Three farmers on a southern NSW council seeking a whopping rate increase of almost 70 cent have failed to halt the move, at an extraordinary meeting this week.

David Bott, Derek Schoen and Richard Nixon were elected to Federation Council last year on a “back to basics” platform as the council encountered mixed results with previous attempts to lift rates following decades of some of the lowest rates in NSW.

But on Tuesday, the council voted 6-3 to pursue an application to the NSW Independent and Pricing Tribunal for a permanent 69.94 per cent increase in general rates over two years starting July 1.

Another farmer, Robert Pearce, who is not on the council, said 43 per cent of Federation’s rate income came from farmers in the Corowa, Mulwala, Howlong and Urana areas.

“People accept there will be some rate increases, but they expect to see benefits from it,” Mr Pearce said.

“As farmers, the one thing we rely on is good access to our properties and we’re not seeing that change.

“Like everyone else you have to pay rates out of discretionary income, so in drought years, and severe flood years, there is no discretionary income.”

Federation councillor and Coreen farmer David Bott, right, with his dad Bill.

Cr Bott said council had not “exhausted all the options” to rein in spending.

“I am not against rate increases, but what I am against is a rate increase of this magnitude,” he said.

“We need to see verifiable, quantifiable, proof that there has been cost containment strategies implemented before we go to ratepayers and say this is the only option we’ve got.”

But Cr Rowena Black, who voted in favour of the rate hike, said “we need to make this hard decision now”.

“We cannot continue to delay this conversation and hope we get $12m, $13m, $14m worth of savings somehow,” she said.

“I know it’s hard and people don’t like it.”

Federation councillor and former NSW Farmers president Derek Schoen.

Cr Schoen, a former NSW Farmers president, said every avenue “to get our finances right” had to be exhausted before additional rate income was sought.

“The (special rate variation) will cause collateral damage in the council area and lead to a longer recovery from the economic downturn,” he said.

“The cost-of-living crisis has hit hard on Australian society and discretional spending has been cut right back.”

Corowa and Urana shires merged to become Federation Council nearly a decade ago.