CEO David Farmer has outlined in a four page letter to IPART that he supports a change in methodology for rate pegging.
“Overall, the proposed changes are a step in the right direction towards allowing councils to adequately increase their income from rates to support the increases in costs to provide services to the community,” Mr Farmer said.
“The proposed changes to the current methodology for setting the rate-pegging will align the rate peg amount closer to increases in costs faced by councils.”
He says financial sustainability will continue to be an issue for most NSW councils while there are limits on the revenues they can raise to pay for services, including maintaining and renewing vast infrastructure assets.
And he worries that the process of rate pegging is often played out in the media “which naturally limits the amount of information that can be conveyed on what is a highly complex model”.
In total, IPART received 73 submission, the vast majority from councils with the individual writer’s names suppressed, in response to a draft report on a new rate peg methodology.
Mr Farmer’s submission was on Council notepaper and he signed it as the CEO of Council.
IPART is the Independent Pricing and Regulatory Tribunal which sets the maximum rates NSW councils can charge.
Should the Administrator, Rik Hart, have signed off on Mr Farmer’s submission to IPART?
Council-under-administration says no.
“IPART sought responses from Councils and members of the public in preparing its issues paper on the calculation of the Rate Peg methodology,” Council said.
“Consistent with his delegated authority, David Farmer prepared Council’s submissions from an organisational and operational perspective.
“Given members of the public were separately invited to make submissions, it was not necessary for Council to take its position through a duplicative engagement process.”
Northern Beaches Council also put in a submission without it first being approved by its councillors.
“Due to the deadline for the provision of feedback, this letter has been prepared by Council staff under delegation,” the Northern Beaches submission states.
Resident Kevin Brooks says yes, administrator Hart should have adopted or rejected the report at a public Council meeting.
He also submitted a response and is opposed to the proposed changes.
“The previous methodology limited the salary component of rate pegs to the average salary increases across the whole public sector,” he said.
“Passing on whatever salary increase Councils approve straight through to ratepayers will lead to even higher rates across NSW including the Central Coast.”
Mr Brooks said Council submissions on contentious issues like this would normally be presented to a formal Council meeting for approval – preferably after community consultation.
Mr Brooks says it’s an example of how, in the absence of local democracy, unaccountable Council bureaucrats ignore due process and act in their own interest rather than the interest of the community.
“In this case, Mr Farmer is serving the interest of the Council bureaucracy by supporting a new rate peg methodology that passes whatever salary hikes Councils approve straight through to ratepayers,” Mr Brooks said.
Central Coast Council has been without councillors and under administration since November 2020.
