Stage 2 of the $50 million Crago Mill Civic Precinct has been put on hold in a bid to stem the Yass Valley Council’s financial woes. Photo: Sally Hopman.
Yass Valley ratepayers face an annual increase next year from 40 per cent to almost 60 per cent if the Yass Valley Council endorses a one-year special rate variance (SRV) designed to save it from financial crisis.
The increase translates to $489 for residential, $1370 for rural landholders and more than $1440 for businesses.
Two other options have been flagged – a two-year cumulative SRV where residential rates would increase by $688, rural by $1926 and business by $2026 or, over three years, residential $718, rural $2010 and business $2114.
If endorsed, the SRV will be included in YVC rates from 1 July 2026.
The three options, outlined in an SRV investigation, will be tabled at an extraordinary meeting of the YVC on Wednesday 12 November.
Without an increase in rates, the extraordinary meeting will be told, council “… would not be able to adequately fund the delivery of current services and maintain its infrastructure”.
The YVC has been under government and public scrutiny since, in its 2023–24 financial statements, it reported a consolidated operating deficit of $4.5 million and a cash balance of only $55,000. This was compounded by its inability to hire expert staff, with the YVC operating without a chief financial officer for two years – that position was filled by contractors – followed by the sacking of the CEO last year. No reason was given for his removal.
Its Long-Term Financial Plan, adopted in June this year, forecast the deficits to grow over the next 10 years, with an anticipated $6 million operating deficit in 2027-28 and a $22 million negative unrestricted cash balance by the end of the 10-year forecast period.
YVC’s financial position came under the scrutiny of the NSW Office of Local Government (OLG), the NSW Government agency responsible for the accountability of local councils, in 2024. In October last year, the OLG raised concerns about the YVC’s financial sustainability and began to regularly monitor its financial performance.
The YVC had blamed the situation on natural disasters, economic impacts from the COVID-19 pandemic and historic low interest rates returning low returns on investments. This was followed, it said, by a volatile inflationary environment where its costs increased faster than its revenue.
The YVC also faced public criticism, with its decision to borrow $50 million to develop the Crago Mill Precinct – a new council chambers, library and administrative precinct – whilst facing such financial issues. It also came under fire for failing to give priority to the town’s decades-old water supply problem with residents complaining of brown, smelly water coming from their taps. This has been blamed on the town’s antiquated water treatment works.
The OLG had raised concerns about whether the YVC could repay up to $50 million in loans it had taken out to build the Crago Mill project.
While the first stage of the Crago project is near completion, the YVC moved last month to “pause” the second stage which, it said, would save $10 million. Under Stage 2, the existing administrative building would be demolished, the historic Crago Mill refurbished and a new commercial centre developed.
In a bid to remedy its financial woes, the YVC adopted in August the Financial Sustainability Roadmap 2025-2029 which identified actions to improve its forecasted financial position.
The extraordinary meeting of Yass Valley Council will be held at 4 pm on Wednesday 12 November at the Yass High School in Grampian Street. It will also be available via webcast.
The community consultation period will be from 13 November to 10 December.
