Councillors voted 'yes' to applying for a special rate variation (SRV) during the Ordinary Meeting on Tuesday, November 21.
The vote was 8 to 1 with Alexandra Wyatt the only councillor to vote against the recommendation.
Kempsey Shire Council's forecast deficit of $79M if nothing changes over the next ten years is the driving force behind a potential rate rise.
How the council can achieve financial sustainability through increased revenue and cost cuts were discussed in depth.
Here are just some of the views on council's situation, the need for an SRV, and impact on the community expressed by council staff and councillors during the meeting.
Director Corporate and Commercial Stephen Mitchell
- The $79M deficit forecast continues to be unsustainable if nothing changes over the next ten years.
- "The revised option of 42.7% is cumulative over three years."
- "This issue is complex...we've done our best to provide a level of information for people to understand the size of the issue we are dealing with."
- "The issue for all local governments to achieve financial sustainability is ongoing."
- "Council will continue to look at ways to reduce costs."
- The 7.9% for the first year will give people time to prepare for further increases in the second and third year.
- Clarification that community events, e.g. Sky Stories at South West Rocks, were delivered entirely through state government funding.
- Pensioners are entitled to rebates regarding water and sewer and also rates.
General Manager Craig Milburn
- $8M a year needs to made in revenue to deal with $79M deficit forecast. Mention of potential job losses, road maintenance delays, operating one less pool in the shire, reduced maintenance of sports fields etc as a way of making up that amount.
- 90 out of the 128 councils have applied for an SRV
- Historic rate pegging is a structural problem for LGAs.
- We have sufficient staff across many areas, but some areas are in a very competitive market nationally and in this way we've lost staff who have been head hunted.
Mayor Leo Hauville
- We have to consider the long term financial health of Kempsey Council.
- What costs can we make if we don't go ahead with the SRV application? We have to consider impacts of the whole community and what services people are willing to forgo or cut?
- Concerns of potential loss of valuable staff who work hard.
- Supports the motion of the SRV application, giving council time while IPART considers application while continuing to look at ways to save.
Councillor Riddington
- "It is an application to IPART is it not a vote for a rate rise."
- "The heat needs to go on the Federal Government and the State Government for years of cost shifting."
- "The rate peg is wrong."
- "There is no guarantee that we will pass this in June [2024]...this is not written in stone, it is an application and an application only."
- "I want to play for time, I want to work it out, and work closely with all of you [the community] and my fellow councillors."
- "We are in a situation together...we can all do better."
Councillor Bain
- "We are making a decision about an application about a Special Rate Variation that gives council an option down the line."
- "Our councillors will be proactive in analysing the budget into the future."
- Both ratepayers and residents are impacted. "Capacity to pay will also impact renters...landlords will pass costs onto their renters."
- The SRV is an option only. "We're not committed, it will be a decision made in June 2024."
- Inter-generational equity repercussions of an SRV versus cost of backlog of not spending the money on things like road repairs over the next ten years. How do we look after the future?
- "Reluctantly" voted in favour of the motion, considering a time lapse in the decision of a rate rise.
- "I encourage the community to lobby the state government and the federal government."
Councillor Patterson
- "We don't want to move [the debt] onto our children and their children's children."
- Questions regarding survey to community about which services they would like to see council cut in order to deal with forecast deficit, making note of Kempsey airport operational costs and the rehabilitation project, costs of community events, and the saleyards maintenance and lease.
- Those with a fixed income concerns mentioned in public forum led him to ask a question regarding pensioner rebates within the shire.
- Staff salaries under the spotlight from public, asked whether or not we've lost staff because council aren't paying them enough.
- "I will not stand by and do nothing about this"
- Let's start dealing with our financial future now, before it's too late. "If we do nothing we will make it harder for our children's children."
Councillor Saul
- Raised issue of welfare for council staff.
- Concerned about job losses in council.
- "Many of our staff are single parents...and they are very concerned that they are on the chopping block if we don't go ahead with this SRV."
- Urged councillors to go ahead with the SRV application to support council staff.
- "If we don't go ahead and maintain our roads...what will our community be like then?"
Councillors Wyatt
- Concerned about capacity to pay report and its data from years 2016-2022.
- Against the motion, making note of consideration of the agricultural sector and fixed income residents.
- Standing by motto of 'leave no-one behind.'
- Council needs to live within its means, while taking in to account the challenge of cost shifting for local governments.
- "I can't support a rate increase."
- Privileged now as a full-time employee, however has experienced financial hardship in the past
- "Interest rates have increased thirteen times since May 2022."
- " I want to send a clear message to the government that they need to do better for regional New South Wales and Kempsey."
- "We need our community to be liveable."
Councillor Butterfield
- Asked questions to give General Manager Craig Milburn a chance to clarify on some points made by speakers such as bringing on an administrator, making note that many of the attendees walked out before hearing particular helpful information.
- Reluctantly in favour of motion while understanding community stress and what it is to experience financial hardship
Councillor Fergusson
- Council will need to manage the deficit through significant cuts. Asked for suggestions from the General Manager on where council could save money on a large scale.
- Lives up river surrounded by farmers and has seen the increase in work needed to keep businesses afloat.
- "I think it is important to lodge this application"
- "If nothing else the application to IPART highlights...the extent of this problem that has been shifted on to us"
Councillor Ring
- It's a long way forward in financial sustainability.
- Amazing to see so many community members engaged with this issue
- It's not just a motion for an application, it is one to identify cost savings.
- Making a decision with the future in mind.
How the Councillors voted
Councillor Kerri Riddington: Yes
Councillor Dean Saul: Yes
Councillor Simon Fergusson: Yes
Councillor Arthur Bain: Yes
Councillor Alexandra Wyatt: No
Councillor Kinne Ring: Yes
Councillor Scott Butterfield: Yes
Councillor Anthony Patterson: Yes
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