Council has agreed to a 4.9 per cent rate rise for 2025-26. Photo: BVSC.
UPDATE 3:45 pm – Bega Valley Shire councillors have locked in a 4.9 per cent rate increase for 2025-26 along with a suite of planning documents that outline council’s commitments for the next four years.
Mayor Russell Fitzpatrick said while the adopted Long Term Financial Plan considered various scenarios – with option C showing what could be delivered with the current rate peg up to option A suggesting a 52 per cent rate hike in 2027/28 – it was decided at this time to deliver services and projects aligned with the approved rate increase.
“We thank the community for their written submissions and feedback at our community meetings during the exhibition period, with several changes made to the documents,” he said.
“Key themes identified from these discussions included housing availability and affordability, climate change and resilience, financial sustainability, asset management, the cost of living, childcare, reliance on grant funding, advocacy to state and federal governments and grant and project reporting.”
The plan is to invest $331 million over the next four years in asset renewals, upgrades and new assets.
But some of these will only go ahead if the necessary grant funding is secured.
Investment over the next four years will include:
- Water Assets: $60.6 million for reservoir replacement, new water meters, solar installation, general upgrades and a new water treatment plant at Yellow Pinch
- Sewer Assets: $98.3 million for water treatment plant upgrades, recycled water expansions and the Merimbula Ocean Outfall project
- General Assets: $172.5 million covering roads, bridges, the airport, waste, parks, aquatics and recreation. Some the larger projects include Merimbula Boardwalk, Bega War Memorial Pool, Bega Sporting Complex, Cuttagee Bridge, Merimbula CBD, Merimbula Basketball and Netball Courts Pavilion, Merimbula Skatepark, George Brown Oval changeroom, Dignams Creek bridge, Central Waste Facility Cell 5 construction and organics processing facility.
Mr Fitzpatrick said close to $53 million would be invested in the road and bridge network, with several projects dependent on grant funding.
“Alongside our core services, we will focus on key priority areas including enhancing customer service, governance and record-keeping and a review of our development assessment services, all informed by community feedback,” he said.
“The 4.9 per cent rate increase property owners will see in their July rate notices is based on land valuations provided by the Valuer General earlier this year. Water, sewer and waste charges will also increase by 4.9 per cent.”
Mr Fitzpatrick noted there was still an ongoing shortfall in funding to maintain council’s $2 billion in assets.
“Despite budget constraints, our aim is to continue to balance community needs with financial realities, recognising that some desired projects may not be feasible at this time,” he said.
“The recent Federal election commitments are valuable in facilitating key projects and we are working closely with Minister McBain to finalise funding agreements.
“Our ongoing commitment to community objectives ensures the community’s needs are always at the forefront of our decisions.”
Bega Valley Shire Council is urging landlords to list vacant properties. Photo: File.
25 June, 11 am – Bega Valley Shire residents’ fury over the council’s proposal to raise rates by another 52 per cent has been laid bare in public submissions.
Council will increase rates by 4.9 per cent for the 2025/26 financial year but it has previously flagged the current Special Rate Variation (SRV) isn’t enough to cover future costs.
The consultation for council’s Draft Delivery Plan 2025-2029 ran over June and responses were overwhelmingly negative.
“I will be homeless if you put the rates up more, as I don’t earn lots of money,” one resident wrote in her submission.
“Where I live, everyone pays council nearly $100,000 per year as it is, and I can’t see how council needs more money out of us. It’s not fair.”
Many residents focused on the impact rate rises would have and their inability to pay higher rates. Other responses focused on the business aspect of the council.
Another resident questioned why the council was continuing to pay for major projects if it was broke.
“None of these projects are high on the ratepayers’ mind as you have managed to raise our rates to one of, if not the highest, rates in NSW. Bega Valley Shire residents cannot cop another rate hike,” he wrote.
“If council can’t manage with what they have an administrator needs to be brought in.”
Several submissions highlighted that this option comes on the heels of a successful 48.3 per cent rate rise request in 2023/24 that aimed to improve financial sustainability, reduce asset backlogs and fund ongoing operations.
Council originally floated the idea of a 90 per cent rise. It argued the initial rise was not enough to cover the budgetary shortfall.
Nothing has been decided but council’s documents were frank about its financials.
“Without further significant state and federal government support, beyond competitive grant programs, council does not have the ability to fund the infrastructure and services our communities have come to rely on,” its financial and resource considerations stated.
Three funding options were floated in the draft plan:
- Option A – 52 per cent increase in 2027-28
- Option B – 28 per cent increase in 2027-28
- Option C – 3 per cent increase in 2027 -28.
Council said it’s currently operating under option C.
In response to one submission, it stated the previous SRV was less than what was needed and that another would have to be considered in four to five years.
The Independent Pricing and Regulatory Tribunal (IPART) has set the rate peg for 2025/26 between 3.5 and 5.1 per cent.
The next SRV applications deadline is in February 2026.
IPART has approved a number of similar rate rises across the state in recent years as councils struggle with budgets.
This includes a 52.48 per cent rate in the neighbouring Snowy Monaro Council, which was approved last year.
In the past 10 years, more than 90 per cent of IPART applications made for SRVs have been successful, with the tribunal only rejecting eight since 2014.
