Hunter ratepayers poised to pay more as population booms

BY DAKOTA TAIT

Hunter residents are facing a significant hike to their council rates next financial year.

The Independent Pricing and Regulatory Tribunal (IPART) has pegged the 2023-24 base rate for NSW councils at 3.7 percent, a stark increase on this year's 0.7 percent.

While Newcastle and Lake Macquarie will stick to the base rate, the potential peg's been set as high as 4.4 percent in Port Stephens, and 5.9 percent in Maitland, the second-highest in the state.

IPART Chair Carmel Donnelly says it's a mechanism for regions experiencing population growth, however, and not all ratepayers will see the same rate hike in the same council area.

"The amount that's for a population factor is just about recognising that there needs to be, if you like, a bigger bucket because there's a bigger population," she said.

"It's shared amongst more people."

Higher inflation has also meant councils are facing bigger costs to deliver services, though the upcoming base rate is still below Australia's current rate of inflation.

Port Stephens Council is already seeking input from the community on a potential special variation to help alleviate the city's financial woes - either a one-off 26 percent hike, or 10.5 percent each year for three years.

Port Stephens, as well as Newcastle, Lake Macquarie, Cessnock, and Muswellbrook have also been granted special rate increases for the current year, from 0.7 percent to 2.5 percent.

Maitland residents could be in for a bigger shock when it comes to costs, however, the council previously choosing to stick with the 0.7 percent peg.

Maitland Council General Manager David Evans says there's a lot to consider, and ratepayers shouldn't jump to conclusions ahead of the next financial year.

"It's important to stress, that one, it's a maximum," he said. "It's not an obligation on council to take up the full amount of that rate peg."

"The decision truly is a decision that can only be made once we start to move through our budgeting processes."

"The other important point is that it's a percentage increase that applies to Council's total rate yield. It's across the whole of the local government area. It's not a percentage that applies to any one individual rate notice."

Taking into account the population factor, here's what the base rate peg will look like in your council area.

• Cessnock - 3.8 percent
• Dungog - 4.4 percent
• Lake Macquarie - 3.7 percent
• Maitland - 5.9 percent
• Muswellbrook - 3.7 percent
• Newcastle - 3.7 percent
• Port Stephens - 4.4 percent
• Singleton - 3.9 percent
• Upper Hunter - 3.7 percent

Helping Hand Still Available for CBD Traders

BY LAUREN FREEMANTLE

Newcastle business owners are being reminded there is still rate relief available from City of Newcastle.

Those impacted by light rail construction can receive a share of $400,000 from Council, but so far 102 applications have resulted in the payout of just $37,000.

Rebates have been returned to 95 applicants in the first 10 weeks of the program, which is open for the duration of the 2018/19 financial year.

To be eligible for the scheme, a CBD business needs the property owner to have paid their first quarterly rates, which were due in August.

Lord Mayor Nuatali Nelmes says the helping hand has been available since July, but many traders must be unaware of it.

"The state government hasn't given compensation to the businesses affected by light rail construction but this is something that Council's been able to do and still be able to deliver a $100 million works budget through the city," she said.

"There are hundreds of local small businesses that are yet to apply for rate relief. Clearly many are unaware that the funding exists....The process of application is straight forward, and businesses can apply at any time throughout the current financial year," the Lord Mayor continued.

Anyone interested should complete an application form together with details of tenants (with their signature) where applicable.

Long slog: Transport Minister Andrew Constance in Newcastle to unveil the first light rail vehicle for testing. 

Rate Reduction Slips Through Maitland Residents' Fingers

BY LAUREN FREEMANTLE

A motion to give Maitland residents a one-off rate reduction has been shot down by the majority of Councillors in last night's meeting.

Labor Cr Ben Whiting raised the proposal, which would see Maitland Council absorb a scheduled rate increase of 7.25%; instead limiting it to 2.3%.

It would've equated to a one-off saving of around $80 to $100 per ratepayer.

Cr Mitchell Griffin, who voted against the motion, said it "simply didn't equate" within the budget, and believes essential projects would've been put at risk if Council allowed the reduction.

"There was going to be quite a substantial cost put on the community - around $40 million over 10 years," he said, "services would have been cut from Council's Delivery Program...obviously when you make that sort of cut you have to look at jobs as well. 

"So hence, we've protected the jobs of those within Council and also the Delivery Program we'll be running over the next 10 years," he concluded. 

However, Cr Whiting said he carefully considered the financial implications of the move and mapped out areas to absorb the rate cut. 

"In the motion, I noted the roads as an example," he said, "they're done on a prioritisation basis - they are now and they always will be - so as part of targeting where to cut, I looked at the lower priority roads...and that same process could have been applied across the board." 

Cr Whiting said he was disappointed, but not surprised the Liberals voted against the "modest proposal." 

However Cr Griffin believes the $100 saving promised by Labor in the last election didn't add up with the $77 figure put on the table last night. 

"One has to question whether there is a genuine benefit for the ratepayer," he said, "or it was just there to pork-barrel the electorate." 

Meanwhile, breaches of Council's Code of Meeting Practice are being investigated by the General Manager following a series of interruptions from Councillors who were speaking.