‘Shaping Mosman’s Future’ - Views Sought on Rating OptionsPosted Thursday 16 October 2014
Council is currently seeking community views on three rating options for Mosman’s future. A decision will be made in December as to whether Council proceeds with an application to the Independent Pricing and Regulatory Tribunal (IPART) for a Special Rate Variation in 2015-16.
There are two primary reasons for Council considering these options:
- The impending expiry of the 5% Community Environmental Contract levy (or CEC) which has been levied on Mosman ratepayers for the last 15 years, and the potential impact on Council’s longer term financial sustainability
- Opportunities to improve local infrastructure
The three options being considered are:
Maintain rates in accordance with the State Government’s annual rate peg (estimated at 3% per year), allowing for the expiry of the temporary Community Environmental Contract levy (i.e. 5%) in 2015-16. This will result in a 2% reduction in rates next year
Continue to levy rates in accordance with the State Government’s annual rate peg (estimated at 3% per year) plus a one-off rate increase for infrastructure works equivalent to the value of the expiring Community Environmental Contract Levy (5%) in 2015-16 that remains permanently in the rate base – meaning an 8% rate increase next year
Continue to levy rates in accordance with the State Government’s annual rate peg (estimated at 3% per year) plus a one-off rate increase of 10% to fund additional infrastructure works (8.5%) and allow for a financial sustainability component (1.5%) in 2015-16 that remains permanently in the rate base – meaning a 13% rate increase next year
Both Options 2 and 3 will require that Council makes application for a Special Rate Variation. Additional funding through a Special Rate Variation will enable Council to progressively address its current infrastructure backlog of $8.6 million. Option 2 will go some way towards reducing the current backlog, while Option 3 will remove the backlog altogether over a 10 year period. Under Option 1 Council’s infrastructure backlog could be expected to increase to $12 million over the next 10 years.
More detail on the rating options are available on the Shaping Mosman’s Future page on this website. This engagement page gives opportunities to vote on the preferred option or to leave other comments. An information brochure will also be delivered to households and businesses in the week commencing 20 October, together with a reply-paid postcard on which votes can be recorded and returned free of charge to Council.
A Public Meeting will be held to discuss the ‘Shaping Mosman’s Future’ rating options at 7pm on Monday 27 October at Mosman Civic Centre. The deadline for community feedback is Sunday 16 November 2014.