Tenterfield was one of 28 NSW councils to have their application approved in full.

As of July 1 this year residents will see an increase of 15 per cent in 2014/15, followed by 10 per cent surges in each of the next three years.

These increases include the rate peg and will be maintained permanently.

IPART Chairman Peter Boxall mirrored previous arguments made by Tenterfield Shire Council that said the changes would still effectively be lower than surrounding areas.

“We are conscious that our decision to approve the increase in general income by 15 per cent including the rate peg in 2014/15, followed by further 10 per cent increases in each of the next 3 years, is among the biggest percentage increases in NSW,” Mr Boxall said.

“But while the percentage is high, rates will remain lower than those in neighbouring council areas, rising by between $71 and $122 in 2014/15, and the council’s financial position will be strengthened with an extra $10 million over the next 10 years for investment in roads and other infrastructure.

Average residential rates will rise by a cumulative 57.7 per cent, average business rates 50.1 per cent and farmland rates will jump by 52.5 per cent over the first four years.

In approving each councils’ application, IPART has imposed conditions requiring that the additional income be used for the purposes outlined in their applications, and that each council report to the community each year.

Armidale Dumaresq, Glen Innes Severn, Liverpool Plains and Guyra were some of the surrounding shires that were also successful in gaining an increase.

“All of these councils were able to meet the criteria for approval of the special variation by demonstrating a clear need for the additional revenue, that they had appropriately engaged the community about the proposed rate increases, and that they are taking steps to improve productivity and contain costs,” Mr Boxall said.

“In making these assessments, we have considered each council’s long term financial plan, taking into account the financial need of the council and the capacity and willingness of ratepayers to pay the requested increase.

“Although some communities were divided about the increases, the councils have demonstrated that they have provided opportunity for input, weighed up community concerns against alternatives to the increases sought, and that they have considered the impact on ratepayers.

“In the cases of Armidale Dumaresq, Glen Innes Severn and Liverpool Plains councils, the original proposals were amended to address community concerns prior to the applications being lodged with IPART,” Mr Boxall said.

No such amendments were made to Tenterfield’s proposal.

Tenterfield Shire Council’s low rating base, weak financial position and maintenance backlog were considered alongside affordability concerns in IPART’s assessment of the council’s application to increase general income by a cumulative 53.07 per cent, including the rate peg, over the next four years.

“The annual increases in the dollar amounts reflect the percentage increases we have approved and a catch-up adjustment of $47,567 to the council’s general income in 2014/15.

“While the council has the lowest average taxable income amongst a group of surrounding councils, and the second lowest in NSW, we calculated average rates as a percentage of average income to assess affordability.

“Although these increases are significant, we have determined that they are reasonable under the criteria given current rates are low, and encourage anyone facing difficulties to access council’s hardship policy,” he said.

The rise will generate $4 million additional revenue in four years and $10 million over the next decade with council expected to use $9.6 million on capital works and $400,000 on extra operating expenditure.

In their application council reported productivity savings in past years, but has not detailed initiatives for the future.

Even with the special variation council’s operating deficit will remain close to $2 million a year, or 14 per cent of operating income.

Mr Boxall said IPART had received 81 written submissions comprising 66 form letters and 15 individual submissions - all opposing the rate jump.

The news of the increase comes as Tenterfield Shire Council winds up its Operational Plan and Budget community meetings in Drake later today.

“The key outcomes in the Community Strategic Plan have driven the actions and direction that council is taking, but the 12 month Operational Plan provides the how,” Tenterfield mayor Peter Petty said.

“It is important for the community to understand how their rating dollars are spent and through experience - it has been found that the community forums are the best way to impart this important information.

Cr Petty said attendance at the forums had waned from previous years.

“Indeed, it could be perceived that the decrease in attendance indicates that the community is generally happy with the direction this current council is taking,” he said.

The full 32 page report on Tenterfield’s application and determination is available on the IPART website at www.ipart.nsw.gov.au.