Dubbo Regional Council submits feedback to IPART about rate peg methodology

As part of the review, IPART will be consulting extensively and is interested in all stakeholder views.

They want to hear from stakeholders, including both councils and ratepayers, about what is and isn't working with the rate peg, and how it could be improved.

The current rate peg methodology includes considering annual changes in the average costs faced by NSW councils and each council's population growth.

IPART has set the 2023-24 base rate peg for NSW councils at 3.7 per cent.

There is also an allowance for the level of population growth, meaning some councils will have rate pegs of up to 6.8 percent.

DRC deputy mayor Richard Ivey said it was a great idea that IPART has asked for feedback on their rate pegging methodology.

"I must admit, I'll be honest to say I was quite disappointed with the report we put in I thought it could have been more restrictive, I thought there were too many general statements," he said.

An example was council saying to not looking backwards and that they should be looking forwards.

"I thought it was a good opportunity for council to put in some specific issues and list examples using historic data of how this new, more fair and effective rate pegging policy might be," he said.

Council provided the following feedback:

DRC also made mention that the rate peg puts pressure on councils to either reduce existing service levels, the provision of front-line services, or maintenance and upgrades of infrastructure to ensure financial sustainability when adopting the Operational Plan.

They also said the rate peg makes it difficult for councils to accurately plan and budget, especially when the rate peg differs to the 2.5 percent as advised by IPART for long term financial planning.

Councillor Josh Black was critical of Dubbo Regional Council's own rate costs at the current time.

"Really our rates aren't covering what we need to do in council at the moment," he said.

He put most of the blame on both the State and Federal government cost shifting onto local councils.

"There hasn't been monetary support to allow that to happen so I know the rates are dear in Dubbo, people tell me that all the time," he said.

"But the trouble is that the way we are going everything will be closed down one day and we can't get non rate revenue."

Cr Black said it was a problem all council's were facing, but especially DRC.

"With the bad weather we've had over the last three years to keep up with road works, but making ends meet will be a problem going into the future," he said.

Workshops on the rate peg methodology were held in November with a draft report to be released in February.

A public hearing will be held in 2023 after the draft report is released.

This review will not affect the rate peg to apply in 2023-24.

Any changes to IPART's rate peg approach arising from the review will not apply until at least 2024-25.

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