Leeton Shire Council proposing an increase of 52.52 per cent over two years for ratepayers

Leeton Shire Council unanimously voted last week to put the proposal for a special rate variation of 52.52 per cent over the next two financial years to the community for feedback.

The proposal is now out in the public domain and community feedback is encouraged. Special consultation sessions have also been set down so residents can hear council's reasoning behind applying for the special rate variation, as well as having the chance to air their concerns.

The proposal is for a 24 per cent increase in rates for the 2023-24 financial year and 23 per cent in 2024-25. These include the estimated rates peg set by IPART.

Council said at present it does not receive enough revenue in its general fund to cover the cost of maintaining current community assets, services and facilities such as roads, drainage, parks, playground, library, pools, museum, galleries and the Roxy Theatre.

Mayor Tony Reneker said the special rate variation was required to improve council's general fund, which is the only one of four council funds that requires attention to achieve long-term financial sustainability.

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The water, sewer and domestic waste funds remain healthy and sustainable.

"Like many councils across rural and regional NSW, Leeton is facing increasing operational costs, which are impacting us all and the annual rate peg is simply not enough to secure a financially sustainable future for council," he said.

"Council has been using its cash reserves to prop up general fund operations, a situation that needs to be addressed before it starts to become critical.

"While we currently have good cash reserves, using them for day-to-day operations is neither responsible nor sustainable."

The move has been met with criticism from the community.

Concerned ratepayer Alison Egan was worried the move would detract people from living in the shire, saying it placed an extra burden on households already struggling with increasing costs.

"When I first read it, I admittedly thought it was a typo," Mrs Egan said.

"My concern is about the longevity of the town. We effectively will be the most expensive town to live in in this region because of this. This rate rise will put us in the vicinity of coastal areas.

"What are we getting for our money? If it was a small rate rise, I think people would understand. My concern as I said is for the greater long-term implications for our town.

"Those who are struggling, will struggle more. Those who were considering coming to Leeton, perhaps won't."

Council said for its general fund to be financially sustainable long-term, there is need to address the annual ongoing deficits estimated at $4.1 million in 2023-24 increasing over 10 years to $5.1 million in 2032-33.

The proposal will produce additional revenue of $3.4 million over two years.

Rates are based on how much a resident's land is valued at.

They also cover three areas - residential, farmland and business.

As an example if a person owns a property where the land is valued at $70,000, they can expect to pay around $267 extra over the two financial years if the special rate variation is approved.

For farmland with a value of $250,000, it would mean an increase of about $707 and a business land value of $100,000 will be $327.

Residents have been encouraged to attend community consultation sessions to be held on:

More information on proposal can be found at https://haveyoursay.leeton.nsw.gov.au/special-rate-variation where residents can also have their say through an online survey.

Submissions from the community airing their thoughts can be emailed to council@leeton.nsw.gov.au and by letter to the General Manager, 23-25 Chelmsford Place, Leeton NSW 2705.

Submissions must be received by 5pm on November 9.

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