Glen Innes Severn Council will vote on whether to adopt a number of long term plans, which include a proposed increase in rates, at its next meeting to be held on 24th April.
Council, in a recent media release, highlighted that Council’s General Fund is not financially sustainable. As a result, it is becoming increasingly difficult to maintain and upgrade essential infrastructure such as roads, bridges, kerbing and guttering, parks, drainage, buildings and other community assets or provide new community facilities.
This has prompted Council to consider the option of applying to the NSW Independent Pricing and Regulatory Tribunal (IPART) for a Special Rate Variation (SRV) which, if approved, would be implemented in July 2026.
Councils may only increase their rates in line with the rate peg set by IPART, unless an SRV has been approved. The rate peg is the maximum percentage amount by which a council may increase its income from rates for the year.
If endorsed at the April Ordinary Council Meeting, a Community Engagement Program will be conducted until 6 June. Residents and ratepayers will be encouraged to have their say on four options.
- Managed Decline (rate increase limited to just the yearly rate peg): The cumulative rate peg increase is estimated at 9.5% over three years as follows, 3.5% rate peg for 2026/27 and forecasted rate pegs of 3.0% for 2027/28 and 2028/29. Council will implement the Service Review Program and the Review of Waste (domestic and non-domestic) pricing, Water and Sewer Costs and Pricing Strategy. This improves the General Fund’s operations by reducing the deficit by $1.0M in 2025/26 to $4.0M. These strategies alone will not fully resolve operating deficits or a decline in cash reserves
- Sustainability Scenario: A cumulative permanent SRV (including the rate peg) of 55.49% applied over two years as follows; 28.5% (rate peg + SRV) in 2026/27 and 21% (rate peg + SRV) in 2027/28
- Growth and Prosperity Scenario: A 61.75% cumulative permanent SRV (including the rate peg) over 2 years applied as follows; 31.5% (rate peg + SRV) in 2026/27 and 23% (rate peg + SRV) in 2027/28
- Growth and Prosperity Scenario: A 68.50% cumulative permanent SRV (including the rate peg) over 3 years applied as follows; 26.5% (rate peg + SRV) in 2026/27, 20.0% (rate peg + SRV) in 2027/28 and 11.0% in 2028/29 (rate peg + SRV). With this increase, Council can have a modest surplus to deliver a Growth and Prosperity Program that delivers health, housing, parklands and township improvements across the region and importantly, plans for economic growth into the future.
Mayor Margot Davis said “We know this is going to be a challenging conversation—especially at a time when the rising cost of living is placing real pressure on households. No one wants to see rates increase. However, achieving long-term financial sustainability is vital if we are to continue maintaining our infrastructure, delivering valued services, and planning for a stronger future.”
At the conclusion of the community engagement period, Council will review the feedback received and determine whether to proceed with the application to IPART for an SRV. A decision will be made at the Ordinary Council Meeting scheduled for 19 June 2025.
Glen Innes News will publish details about how members of the community can find out more about the proposed rates increase, and provide their feedback to Council, if the proposed plans are adopted by Council at its April meeting.
