Full delivery of Yass Valley’s Crago Mill Precinct was put on hold over financial concerns, but the worries aren’t over yet. Photo: Sally Hopman.
In a marathon extraordinary meeting, Yass councillors have deferred a decision on whether the council will increase rates to cover a more than $4 million deficit.
The meeting was called to discuss three proposals to hike rates by between 40 and 58.70 per cent, and also to lock in community engagement over the next few months, in light of council’s financial situation.
YVC is facing a $4.5 million deficit and a cash balance of only $55,000, identified in its 2023–24 financial statements.
Yass CEO Gayleen Burley outlined several steps already taken to improve the financial situation, and said more work was needed.
She pointed to the September decision to abandon Stage 2 of the Crago Mill development, “deep-dives” into asset management plans, adoption of the Financial Sustainability Roadmap and one-off injections from land sales.
Council documents state that if a rate hike isn’t adopted, the council will need to reduce its spending by more than $3 million every year.
After a lengthy debate on how the council should move forward, Councillor Alvaro Charry won support for his proposal, which would see a decision put off until early next year.
His motion also called on YVC to consider alternatives to a rate increase and seek more information on specific “efficiencies and cost-saving” measures it could take.
Cr Fleur Flanery spoke in support of the motion, saying it would give councillors and the community time to “reflect and think” about the situation.
“I recognise that it might be a delay, of sorts, but it also gives us time to really think about what partnerships we could develop and what opportunities there are.”
Mayor Jasmin Jones says a 2016 rate increase didn’t address long-term issues facing Yass Valley’s budget. Photo: Supplied.
During discussion, Mayor Jasmin Jones said the council’s focus had to be on strong financial management.
“I don’t want to be a council that’s not brave enough to take the hard steps. … The rate peg is simply not enough for us to maintain $500 million worth of assets.
“That’s what we have to look after for our community. We cannot do it on the budget that we have.”
She also said that without action, there would be an unavoidable discussion around reductions to library hours and other services, as well as continued delays to the council’s road repair backlog.
“Not only are we not financially sustainable, we are already, as a dog, eating the tail. We are eating into our reserves that are set aside for plant replacement, for everything that we need to do to be sustainable.”
The meeting heard that a review of council’s hardship policy was ongoing.
Councillors Kristin Butler, Charry, Flanery, Adrian Cameron and David Carter ultimately voted in favour of Cr Charry’s motion to defer a decision.
It means that councillors are expected to reconsider the issue in March 2026.
For the increase to go ahead, YVC would need to make a formal application to the Independent Pricing and Regulatory Tribunal.
