Glen Innes Severn Council has adopted a revised Long Term Financial Plan (LTFP) that includes a cumulative 48.3% Special Rate Variation (SRV) over three years, subject to approval by the Independent Pricing and Regulatory Tribunal (IPART). The decision was made during a highly contentious council meeting on Thursday, 19 June 2025.
The General Manager described the vote as “probably the most important decision this council will make for a very long time”, as the council seeks to address a forecasted $4.7 million deficit and long-term financial challenges.
Financial Review Sparks SRV Proposal
The proposed SRV follows findings from a Financial Sustainability Review conducted in early 2024, which determined that the council was “not financially sustainable” without additional revenue. The General Manager noted that 80% of councils in New South Wales have faced similar issues and have pursued rate increases.
To support community understanding, the council ran the “Shaping Tomorrow” engagement program. Feedback gathered through the program revealed that 64% of respondents did not support an SRV, though many emphasised the importance of roads, bridges, and health services.
Revised Plan Includes Concessions and Cost Savings
Council ultimately adopted a “Sustainability Revised scenario” with rate increases spread over three years:
- 21.5% in 2026/27
- 12.0% in 2027/28
- 9.0% in 2028/29
Adjustments in the revised plan aim to reduce the financial burden on ratepayers and include:
- Delaying the financial sustainability target to 2029/30 (the SRV to be implemented over three years instead of two).
- Annual savings of $165,000 through business improvements
- A $350,000 per year improvement to the budget through revised depreciation
- An increased pensioner concession, rising from $250 to $300
The General Manager said the plan was “the minimum we need to do to get on the right track” and described it as “data driven”.
Divided Council and Casting Votes
The decision was made following intense debate and several closely split votes, many of which required the Mayor’s casting vote. Councillor Troy Arandale was a strong opponent of the 48.3% increase, arguing that “60 to 70% of our community cannot afford 48.3%”. He proposed a lower 30% cumulative increase, phased in over three years, but this amendment was ultimately defeated.
The General Manager and Director of Corporate and Community Services maintained that anything less than the 48.3% increase would fall short of ensuring financial sustainability.
Councillor Parsons questioned what it might mean if IPART approved a lower increase. The General Manager acknowledged that IPART could suggest a different figure for a range of reasons, but expressed confidence in the accuracy of council’s modelling.
If approved by IPART, the SRV will be implemented from the 2026/27 financial year.
The meeting, which ran for well over three hours, left residents facing the prospect of a significant rate increase and also a clear view of the deep divisions within their local council.
