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 Budget: Council signs off, but no word on rate rise 

Budget: Council signs off, but no word on rate rise

03 Jul, 2009 09:23 AM
UNCERTAINTY remains over the viability of the Kempsey Shire for the next year.

At an extraordinary meeting this week councillors were left with little choice but to sign off on a budget without knowing whether an application for a special 8 per cent rate rise has been successful.

It means the council must rely on the State Government granting the rise or face an $800,000 black hole for the coming year.

The State Government’s timing of its announcement could not be worse for the council, which had to adopt a budget before the start of the new financial year.

In the end councillors were left with two choices: push ahead with the budget on the understanding the State Government would grant its rate rise request; or cut a further $800,000 from services and planned capital works projects.

They chose the former.

“I think it’s outrageous we haven’t received notification from the Minister,” Cr Janet Hayes said during Tuesday’s meeting.

“The only thing we can do is adopt the budget and carry out a review of it when the government does make its announcement. If we don’t we’re in limbo. At least this way we can get on with it.”

Significant cuts have already been made to the roads maintenance, construction and public baths budgets, while Macleay residents can expect significant increases in their water and sewerage bills over the next year.

Even if the State does grant council its rate rise, there remain a number of unknown factors.

Increases in electricity costs of up to 21.5 per cent and changes to council’s super contribution rates will have an impact and could lead to a deficit regardless of whether or not the application is successful.

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