We have started a conversation with our community about whether to apply for a Special Rate Variation (SRV) to increase rates to ensure we remain financially resilient and able to continue to deliver the services and facilities our community have told us they want and need.
Information sessions will be held around the region in October to speak to the community about the cost savings that have been already made and why we are considering an increase.
We are proposing a permanent SRV of 36.3% over two years. This will mean an increase of 18.5% from July 1, 2024 (including the forecast rate peg of 3.5%) and an additional 15% from July 1, 2025 (including the forecast rate peg of 2.5%). A rate peg is the maximum amount a Council can increase rates by and is set by IPART.
Council is being open and transparent in talking to our community about our upcoming financial challenges. We need to balance rising costs if we want to be financially resilient in the years ahead and not have deteriorating roads and facilities.
To date, Council has been able to maintain infrastructure and services within the rate peg set by the State Government. In recent years this has become increasingly difficult, and while we have forecast a modest cash surplus this year it is projected our cash reserves will soon be in decline.
Already $7.9 million in annual savings or extra revenue has been found, and $3.2 million in one-off savings through 189 individual initiatives. These include saving $1,161,000 in our plant and vehicle holdings, and $321,000 through installing solar power at TRECC. We plan further annual savings of $1.6 million and other one-off savings through a further 24 actions.
Should the proposal proceed, two-thirds of the income will be allocated to our roads and transport infrastructure. It will also be used to maintain community assets and facilities such as the Tamworth War Memorial Town Hall, be invested in aquatic facilities and deliver approved projects.
To find out how the rates for your property may be affected, we have created a rates calculator which can be found on our Have Your Say page. This page also has a full list of freqently asked questions, how our rates compare with similar Councils and the next steps.
We encourage you to attend an information session, online webinar, or visit the page to get more detail. To find out more, go to www.haveyoursay.tamworth.nsw.gov.au