The NSW Government has asked the Independent Pricing and Regulatory Tribunal (IPART) to investigate and report on the financial model for councils in NSW.
The draft Terms of Reference sets out the scope of review.
It asks IPART to review and make recommendations on such things as “the visibility of councillors and the community over the financial and operational performance of their councils” and whether current budget and financial processes used by councils are delivering value-for-money for ratepayers and residents.
The inquiry will look at whether the current funding model will sustainably support the needs of communities and whether both councillors and staff have the financial capacity and capability to meet current and future needs of communities.
These questions are pertinent to the Central Coast where our councillors were suspended in 2020 and sacked in 2022 after financial “mismanagement”.
A public inquiry looked into the role of councillors on a Council that had misspent “restricted funds” and had also budgeted for increasingly high deficits.
This NSW-wide review will inquire into how better planning and reporting systems can improve long-term budget performance, transparency and accountability to the community.
IPART gave approval to our Council-under-administration to have a one-off 15 per cent rate hike that was going to last three years.
Administrator Rik Hart went back to IPART, who then changed it to stay for 10 years.
Since then, CEO David Farmer has publicly said he thinks it needs to remain for good.
On top of that one-off rate rise, Coast ratepayers also pay the annual rate hike which is pegged by IPART each year.
IPART also granted Council a four-year water rates increase that totalled close to 30 per cent.
But before asking residents to discuss the issues, IPART wants to know what the public thinks about the terms of reference.
Is the review planning to look at the right things?
Residents have until March 15 to do a survey or make a submission.
“We may recommend changes to the Terms of Reference for the review as a result of feedback we receive,” an IPART spokesperson said.
There will be further opportunities later this year to participate in the review itself.
To have your say go to https://www.ipart.nsw.gov.au/Home/Industries/Local-Government/Review-of-council-financial-model-in-NSW
Merilyn Vale
The rate peg is designed to stop councils pillaging their constituents.
Its designed to be a protection. We are not responsible for councils shortcomings.
We are not stakeholders of the council we are consumers. Like all consumers we should not be financially responsible for the mistakes of others.
I understand that there was a 3 year rate hike and like all good Australians we should do our bit to improve the situation. However, I cant believe an “independent” tribunal increased it to 10 years. This just proves its about as independent as the industrial relations commission.
Which by the way also uses rate pegging at 2.5% per annum for wages. It appears they want it both ways.
If I was on a Council CEO salary of half a million per annum I would probably not mind a 15% rate rise. Especially if I get 500k for the next 5 years. I think the current Prime Minister is more in touch with Australians than this lot and that’s saying something.