Special Rate Variation and Long Term Financial Plan

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Consultation has concluded

Update 15 June - IPART determiniation

The Independent Pricing and Regulatory Tribunal (IPART) has approved Queanbeyan-Palerang Regional Council’s application for a rate variation of 18% per year for three years.

Update 10 May 2023 - IPART consultation now closed

The IPART consultation has now closed. IPART will consider all submissions received and make their decision in June 2023.

Update 13 April 2023 - IPART consultation now open

IPART have let us know that our application for a Special Rate Variation is now open for community consultation on their website. 

IPART is responsible for the assessment of special variation applications made by councils. They have reviewed our application and are now undertaking another round of community consultation independent of Council.

We recommend that you view the application form and supporting documents before making a submission https://bit.ly/IPART-QPRC  

Submissions can be made via their website until 5 May 2023 - https://bit.ly/IPART-yoursay

Make sure you select the correct council from the drop-down box on this page as IPART are collecting submissions for six councils in the same period.

Update 9 February 2023 - Council to apply for Special Rate Variation

Council voted at the meeting held on 8 February to apply to the Independent Pricing and Regulatory Tribunal (IPART) for a permanent Special Rate Variation (SRV) of 18% each year for three years (Scenario 2).

Update 6 February 2023 - Council Meeting documents available

The proposed Special Rate Variation is on the agenda of the Ordinary Meeting of Council on 8 February. The report and attachment documents are available in the 'Council Meeting Documents' library (to the right on a computer, scroll down on a mobile phone).

Update 12 January 2023 - Online calculator

Now that the NSW Valuer General has release new land values, we have an online rate calculator to help rate payers better understand the effect of the proposed increases to rates on their property.

The calculator is a great way to see how property value can affect your rate - and how a large increase in property value does not necessarily equal a large increase in your rates bill. Where some property values increased substantially more than others – their share of the total rate will increase.

The rate calculator uses new land values determined by the NSW Valuer General to show an indicative general rate for your property under each of the rate variation scenarios Council is considering.

You can access the rate calculator via this link

Background

To address Council’s long-term financial sustainability, we have notified the Independent Pricing and Regulatory Tribunal (IPART) that we are considering applying for a special rate variation (a rate increase). You can provide feedback on this proposal until 31 January 2023.

How did we get here?

The income we receive is less than the expenses we have. This has been the case for a number of years.

Both the former Palerang Council and Queanbeyan City Council were considering options to increase revenue before the merger that created QPRC.

Following the merger, legislation was in place that stopped us from raising rates for four years or reducing expenses by consolidating offices or staff.

While we were able to improve and build new infrastructure with funding we received from the merger, we haven’t been able to address the income we receive. Rates increases have been limited to the rate peg set by the IPART, which has not met the increased costs of providing services.

The costs of construction and materials for new projects, and for infrastructure renewal continue to increase. We also have significant population growth (at 1.9% per year) and the costs of expanded services is increasing more than the income received from additional rate payers.

What have we done to save money?

We are making $2.2m in annual savings, however since the merger our service levels and other costs have increased which has used all of these savings.

We have made budget decisions in recent years to reduce costs; in 2022 this included more than $2m in one-off adjustments via a 5% reduction in our materials and services budget, and deferring recruitment.

We asked independent financial experts Morrison Low to undertake an independent financial assessment of Council to ensure we provide value for ratepayers and to minimise the rate rise.

What will the rate rise look like?

The rate rise only applies to the general rate charge. This is the base rate and land value (or ad valorem) charge on your rates notice. It does not apply to garbage or general waste, sewerage, stormwater, or water access charges.

We are considering three scenarios for rates increases. Two scenarios propose making significant operational savings, partly through service cuts. The rate rise scenarios include the rate peg of 4.6% in year one and 2.5% in years two and three. This means that all figures are inclusive and will not change if IPART increase or reduce the rate peg in the next three years.  In each of the following scenarios the annual rates increases are permanent and cumulative and in year four and future years the rate peg percentage increase will apply to the new higher rate levels. The scenarios are as follows:

Scenario 1 – Significantly reduce services

  • An increase in rates of 12% every year for three years. This would be a cumulative rate increase of 41%
  • For an average ratepayer this would be an increase in year one of $129 per annum or $2.50 extra per week, in year two this would be another increase of $144 per annum or $2.80 per week and in year three another increase of $161 per annum and $3.10 per week.
  • These increases do not fund Council operations and require a strategy to reduce expenses by $12 million each year.
  • Under all scenarios we will improve asset renewal for gravel and sealed roads, sporting facilities, parks and amenities.
  • Savings could include selling off The Q, stopping funding to all community facilities and activities, cutting heritage grants, closing aquatic centres and stopping developments of new sports and aquatic facilities, increasing fees, significantly reducing urban amenities (street sweeping, mowing, maintenance and cleaning), introducing paid parking. More information about cuts can be found in the 3-page explainer.

Scenario 2 – Reduce services

  • An increase in rates of 18% every year for three years. This would be a cumulative rate increase of 64%
  • For an average ratepayer this would be an increase in year one of $229 per annum or $4.40 extra per week, in year two this would be another increase of $270 per annum or $5.20 per week and in year three another increase of $319 per annum and $6.15 per week.
  • These increases would maintain our core services only and deplete the asset base. We will need a strategy to reduce expenses by $5.5 million each year.
  • Under all scenarios we will improve asset renewal for gravel and sealed roads, sporting facilities, parks and amenities.
  • Savings could include increasing fees at The Q, reducing community funding by 50%, cutting heritage grants, only keeping one pool and stopping development of new sports and aquatic facilities, increasing fees, reducing urban amenities (street sweeping, mowing, maintenance and cleaning), and introducing paid parking. More information about cuts can be found in the 3-page explainer.

Scenario 3 – Maintain services

  • An increase in rates of 28%, 25% and 23% (three years of increases). This would be a cumulative increase of 97%
  • For an average ratepayer this would be an increase in year one of $356 per annum or $6.85 extra per week, in year two this would be another increase of $407 per annum or $7.85 per week and in year three another increase of $468 per annum and $9.00 per week.
  • These increases allow us to maintain our current services.
  • Under all scenarios we will improve asset renewal for gravel and sealed roads, sporting facilities, parks and amenities.
  • There would be an additional $100 pensioner rebate for the whole LGA.
  • New environmental programs would receive $1.3 million per year.
  • Renewed infrastructure – community facilities, footpaths and pools would receive $1.9 million per year.
  • Expanded infrastructure for growth and to match 1:1 grant opportunities would receive $400k per year (e.g. footpath extensions)

As part of this process, we have updated both our Long-Term Financial Plan (LTFP) 2022-32 and Delivery Program 2022-26 to reflect these scenarios. These documents are available in the document library.

Information available to explain the rate scenarios

All these documents are available in the document library (found to the right on a computer or scroll down on a mobile device). They are also at our Customer Service Offices and Libraries in Braidwood, Bungendore and Queanbeyan and the Queanbeyan Library.

Submissions will be accepted until 4.30pm on 31 January 2023 and can be made in the following ways:

  • By submitting your comments online below
  • By email to council@qprc.nsw.gov.au (referencing ‘SRV and Long Term Financial Plan’ in the subject line)
  • By mail to PO Box 90, Queanbeyan NSW 2620
  • Delivered in person to one of Council’s offices

Update 15 June - IPART determiniation

The Independent Pricing and Regulatory Tribunal (IPART) has approved Queanbeyan-Palerang Regional Council’s application for a rate variation of 18% per year for three years.

Update 10 May 2023 - IPART consultation now closed

The IPART consultation has now closed. IPART will consider all submissions received and make their decision in June 2023.

Update 13 April 2023 - IPART consultation now open

IPART have let us know that our application for a Special Rate Variation is now open for community consultation on their website. 

IPART is responsible for the assessment of special variation applications made by councils. They have reviewed our application and are now undertaking another round of community consultation independent of Council.

We recommend that you view the application form and supporting documents before making a submission https://bit.ly/IPART-QPRC  

Submissions can be made via their website until 5 May 2023 - https://bit.ly/IPART-yoursay

Make sure you select the correct council from the drop-down box on this page as IPART are collecting submissions for six councils in the same period.

Update 9 February 2023 - Council to apply for Special Rate Variation

Council voted at the meeting held on 8 February to apply to the Independent Pricing and Regulatory Tribunal (IPART) for a permanent Special Rate Variation (SRV) of 18% each year for three years (Scenario 2).

Update 6 February 2023 - Council Meeting documents available

The proposed Special Rate Variation is on the agenda of the Ordinary Meeting of Council on 8 February. The report and attachment documents are available in the 'Council Meeting Documents' library (to the right on a computer, scroll down on a mobile phone).

Update 12 January 2023 - Online calculator

Now that the NSW Valuer General has release new land values, we have an online rate calculator to help rate payers better understand the effect of the proposed increases to rates on their property.

The calculator is a great way to see how property value can affect your rate - and how a large increase in property value does not necessarily equal a large increase in your rates bill. Where some property values increased substantially more than others – their share of the total rate will increase.

The rate calculator uses new land values determined by the NSW Valuer General to show an indicative general rate for your property under each of the rate variation scenarios Council is considering.

You can access the rate calculator via this link

Background

To address Council’s long-term financial sustainability, we have notified the Independent Pricing and Regulatory Tribunal (IPART) that we are considering applying for a special rate variation (a rate increase). You can provide feedback on this proposal until 31 January 2023.

How did we get here?

The income we receive is less than the expenses we have. This has been the case for a number of years.

Both the former Palerang Council and Queanbeyan City Council were considering options to increase revenue before the merger that created QPRC.

Following the merger, legislation was in place that stopped us from raising rates for four years or reducing expenses by consolidating offices or staff.

While we were able to improve and build new infrastructure with funding we received from the merger, we haven’t been able to address the income we receive. Rates increases have been limited to the rate peg set by the IPART, which has not met the increased costs of providing services.

The costs of construction and materials for new projects, and for infrastructure renewal continue to increase. We also have significant population growth (at 1.9% per year) and the costs of expanded services is increasing more than the income received from additional rate payers.

What have we done to save money?

We are making $2.2m in annual savings, however since the merger our service levels and other costs have increased which has used all of these savings.

We have made budget decisions in recent years to reduce costs; in 2022 this included more than $2m in one-off adjustments via a 5% reduction in our materials and services budget, and deferring recruitment.

We asked independent financial experts Morrison Low to undertake an independent financial assessment of Council to ensure we provide value for ratepayers and to minimise the rate rise.

What will the rate rise look like?

The rate rise only applies to the general rate charge. This is the base rate and land value (or ad valorem) charge on your rates notice. It does not apply to garbage or general waste, sewerage, stormwater, or water access charges.

We are considering three scenarios for rates increases. Two scenarios propose making significant operational savings, partly through service cuts. The rate rise scenarios include the rate peg of 4.6% in year one and 2.5% in years two and three. This means that all figures are inclusive and will not change if IPART increase or reduce the rate peg in the next three years.  In each of the following scenarios the annual rates increases are permanent and cumulative and in year four and future years the rate peg percentage increase will apply to the new higher rate levels. The scenarios are as follows:

Scenario 1 – Significantly reduce services

  • An increase in rates of 12% every year for three years. This would be a cumulative rate increase of 41%
  • For an average ratepayer this would be an increase in year one of $129 per annum or $2.50 extra per week, in year two this would be another increase of $144 per annum or $2.80 per week and in year three another increase of $161 per annum and $3.10 per week.
  • These increases do not fund Council operations and require a strategy to reduce expenses by $12 million each year.
  • Under all scenarios we will improve asset renewal for gravel and sealed roads, sporting facilities, parks and amenities.
  • Savings could include selling off The Q, stopping funding to all community facilities and activities, cutting heritage grants, closing aquatic centres and stopping developments of new sports and aquatic facilities, increasing fees, significantly reducing urban amenities (street sweeping, mowing, maintenance and cleaning), introducing paid parking. More information about cuts can be found in the 3-page explainer.

Scenario 2 – Reduce services

  • An increase in rates of 18% every year for three years. This would be a cumulative rate increase of 64%
  • For an average ratepayer this would be an increase in year one of $229 per annum or $4.40 extra per week, in year two this would be another increase of $270 per annum or $5.20 per week and in year three another increase of $319 per annum and $6.15 per week.
  • These increases would maintain our core services only and deplete the asset base. We will need a strategy to reduce expenses by $5.5 million each year.
  • Under all scenarios we will improve asset renewal for gravel and sealed roads, sporting facilities, parks and amenities.
  • Savings could include increasing fees at The Q, reducing community funding by 50%, cutting heritage grants, only keeping one pool and stopping development of new sports and aquatic facilities, increasing fees, reducing urban amenities (street sweeping, mowing, maintenance and cleaning), and introducing paid parking. More information about cuts can be found in the 3-page explainer.

Scenario 3 – Maintain services

  • An increase in rates of 28%, 25% and 23% (three years of increases). This would be a cumulative increase of 97%
  • For an average ratepayer this would be an increase in year one of $356 per annum or $6.85 extra per week, in year two this would be another increase of $407 per annum or $7.85 per week and in year three another increase of $468 per annum and $9.00 per week.
  • These increases allow us to maintain our current services.
  • Under all scenarios we will improve asset renewal for gravel and sealed roads, sporting facilities, parks and amenities.
  • There would be an additional $100 pensioner rebate for the whole LGA.
  • New environmental programs would receive $1.3 million per year.
  • Renewed infrastructure – community facilities, footpaths and pools would receive $1.9 million per year.
  • Expanded infrastructure for growth and to match 1:1 grant opportunities would receive $400k per year (e.g. footpath extensions)

As part of this process, we have updated both our Long-Term Financial Plan (LTFP) 2022-32 and Delivery Program 2022-26 to reflect these scenarios. These documents are available in the document library.

Information available to explain the rate scenarios

All these documents are available in the document library (found to the right on a computer or scroll down on a mobile device). They are also at our Customer Service Offices and Libraries in Braidwood, Bungendore and Queanbeyan and the Queanbeyan Library.

Submissions will be accepted until 4.30pm on 31 January 2023 and can be made in the following ways:

  • By submitting your comments online below
  • By email to council@qprc.nsw.gov.au (referencing ‘SRV and Long Term Financial Plan’ in the subject line)
  • By mail to PO Box 90, Queanbeyan NSW 2620
  • Delivered in person to one of Council’s offices
Consultation has concluded

  • Council to apply for Special Rate Variation

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    Queanbeyan-Palerang Regional Council has voted to apply to the Independent Pricing and Regulatory Tribunal (IPART) for a permanent Special Rate Variation (SRV) of 18% each year for three years.

    ‘We know that the community would prefer to keep all Council services without a rate rise, and that’s what councillors would like too, however this is just not possible,’ said Mayor Kenrick Winchester.

    ‘Council decided to apply for an SRV of 18% each year for three years which will be a cumulative permanent increase of 64%.

    ‘This has been an extraordinarily difficult decision for Council, and we appreciate the time and effort the community has made to tell us about the services that are important to them and their thoughts on the proposed rate rise.

    ‘To do nothing would slowly condemn Council into a period of administration, where an unelected political appointee would not only introduce an SRV, but would also make every decision of Council for an indefinite period of time.

    ‘Councillors have decided on Scenario 2 in recognition of the community’s feedback while also trying to ensure Council’s financial future.

    ‘While the cumulative rates increase of 97% over three years under Scenario 3 would have allowed us to keep all Council services and make improvements, we understand the financial pressure our community is under with cost-of-living increases.

    ‘We recognise that the rate rise under Scenario 2 is a significant increase in the general rates, but it also requires Council to look internally and bear some of the burden.

    ‘This rate increase will allow us to maintain our core services, and we will need to find savings of $5.5 million each year to remain financially viable.

    ‘This means that we won’t be able to do everything we might like to over the next few years and we will need to consider a range of savings options.

    ‘We received more than 1,100 submissions from the community and this feedback will help us meet community expectations as we identify savings.

    ‘We will be submitting our application to IPART by 3 March 2023 which will include a report on the feedback we received during our community consultation period.

    ‘IPART will publish documents on their website and the community will be able to provide further feedback directly to IPART.

    ‘IPART will then consider the application and a provide a decision in May.

    ‘If our application is approved, the rate increase will come into effect on 1 July this year.’

  • IPART grants extension to application deadline

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    22 DECEMBER 2022 - MEDIA RELEASE

    Independent Pricing and Regulatory Tribunal (IPART) has granted an extension for QPRC to the application deadline for a proposed rate increase, through a Special Rate Variation application from 3 February to 3 March 2023.

    The extension means an Extraordinary Meeting of Council planned for 1 February 2023 is no longer required and has been cancelled. Community feedback on the Special Rate Variation (SRV) will instead be presented to the 8 February Ordinary Meeting.

    Rebecca Ryan, General Manager of QPRC welcomed the news ‘This extra month will provide Councillors more time to consider the community’s feedback on the proposed rate increases and review each scenario before making a decision’.

    ‘Since November, the Mayor and I have been attending two to three local progress, business chamber and community association meetings a week all across Queanbeyan-Palerang to explain the background to the current financial situation. We have welcomed the opportunity for these valuable discussions with local residents about what the proposed increase to rates mean and what effects each scenario would have on a typical rates bill. In addition, we have talked about Council services and how important these are for all our towns and villages.’

    ‘The application deadline extension means feedback can be better considered and Councillors can make better informed decisions on which way to proceed.

    ‘Councillors and I have heard from a lot of members of the community and I know there is keen interest in this issue. We have received a lot of feedback already through our formal feedback channels and I strongly encourage everyone to read the extensive information on our Your Voice consultation website,’ Ms Ryan said.

    QPRC is one of 17 NSW Councils to have notified IPART of their intent to apply for a SRV increase, published with useful information about the process on the IPART website

    https://www.ipart.nsw.gov.au/Home/Industries/Local-Government/Reviews/Special-Variations-Minimum-Rates/Special-Variations-Minimum-Rates-2023-24

    Consultation on the SRV and Council’s Long Term Financial Plan remains open until 31 January 2023 at https://yourvoice.qprc.nsw.gov.au/srv

    Once IPART has received QPRC’s application they will undertake their own round of public consultation before a final report and decision is expected in May 2023.

  • Have your say on rate rise scenarios

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    28 November 2022

    Queanbeyan-Palerang Regional Council is inviting community input into three scenarios to address Council’s financial sustainability.

    Two weeks ago, Mayor Kenrick Winchester issued a statement about Council’s financial sustainability and how QPRC had reached this point.

    Mayor Winchester noted that both the former Palerang Council and Queanbeyan City Council were considering options to raise their revenue before the merger.

    He said, ‘While we were able to make infrastructure improvements and build new infrastructure with the funding we received after the merger and other grants, the merged Council was not permitted to raise rates for four years.’

    ‘The rate increases set by the Independent Pricing and Regulatory Tribunal through the rate peg don’t come close to meeting the costs of doing everything the community expects from us.’

    The Mayor added ‘It’s now really important that we have this conversation with the community about Council services and how they will be funded into the future.’

    ‘We are asking you to be involved in the conversation about the services we provide and the potential rate rise scenarios.’

    QPRC General Manager Rebecca Ryan said ‘We have explored three rate rise scenarios which affect the general rate. This proposal does not include waste, sewerage, stormwater, or water access charges.’

    ‘Each scenario shows what type of services Council would be able to provide under a specific rate rise. All three rate rise scenarios include enough funds that ensures Council’s assets like roads, stormwater and buildings are maintained appropriately, however two scenarios involve significant service cuts.’

    The three scenarios are:

    • Significantly Reduce Services: Rates increase by 12% a year for 3 years. This is a cumulative increase of 41%. This scenario does not fully fund current Council operations and will require a strategy to find immediate savings of $12 million each year. This kind of saving may include privatising or selling The Q, stopping funding to all community halls, facilities and activities, cutting heritage grants, closing pools and stopping development of new sports and aquatic facilities, increasing fees, closing libraries, customer service centres and depots at Bungendore and Braidwood, significantly reducing urban amenities (street sweeping, mowing, maintenance and cleaning), reducing the number of Councillors, removing the additional pensioner rebate, and introducing paid parking.
    • Reduce Services: Rates increase by 18% a year for 3 years. This is a cumulative increase of 64%. This scenario involves a reduction of non-core services and.5.5 million worth of savings must be found each year. Savings could include significantly increasing fees at The Q, reducing community funding by 50%, cutting heritage grants, only keeping one pool and stopping development of new sports and aquatics facilities, increasing fees, reducing urban amenities (street sweeping, mowing, maintenance, and cleaning), reducing number of Councillors, removing additional pensioner rebate, and introducing paid parking.
    • Maintain Services: Rates increase by 28% in year one, 25% in year two and 23% in year 3. This is a cumulative increase of 97%. This scenario fully funds the current levels of service. It provides $400,000 per year towards expanded infrastructure and taking advantage of grants that require 1:1 funding, along with $1.9m per year to renew infrastructure like community facilities, footpaths and pools. This scenario provides for an additional pensioner rebate of $100 for eligible pensioners across the local government area. It also allows for $1.3 million towards new environmental programs.

    Rebecca concluded ‘We are one of the largest employers in the region and it’s our job to provide excellent services and high-quality facilities.’

    ‘Council makes a real difference in the lives of people in Queanbeyan-Palerang and it is important that you give us feedback about what matters to you.’

    Have your say until 31 January 2023.

  • Council addressing financial sustainability

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    MEDIA RELEASE - 16 NOVEMBER 2022

    Queanbeyan-Palerang Regional Council is currently considering its ongoing financial sustainability, Mayor Kenrick Winchester issued the following statement.

    ‘Staff are preparing an updated Long-Term Financial Plan that will be presented to the Council meeting on 23 November. The updated Long-Term Financial Plan will include scenarios for a rate increase to address Council’s financial sustainability.’

    ‘There are many factors that have led us to this point. Both the former Palerang Council and Queanbeyan City Council were considering options to increase revenue before the merger.’

    ‘When the NSW Government merged the two councils, neither were in a financially sustainable position. The legislation stopped us from increasing our income or making some decisions to reduce expenses, like consolidating administration offices or staff.’

    ‘The merged Council was not permitted to raise rates for four years.’

    ‘While we were able to make infrastructure improvements and build new infrastructure with funding we received after the merger, the community expect better road networks, better services and accessible community amenities across the LGA. Council has been providing these services with its constrained funding.’

    ‘The rate increases set by the Independent Pricing and Regulatory Tribunal (IPART) through the rate peg don't come close to meeting the increased costs of doing everything the community expects from us.’

    ‘The costs of construction and materials for projects continue to increase. A truck full of gravel or hot mix are both harder to get and costs over double what it used to. Our staff costs continue to increase. We’ve had ongoing population growth and the costs to expand services is increasing more than the income received from additional ratepayers.’

    ‘We’ve also had additional costs from responding to multiple natural disasters and the pandemic.’

    ‘Many councils across the state face a similar financial situation. Over the last twelve years, councils in NSW have been approved for 168 different special rate variations. Some councils have had multiple rate variations in that time.’

    ‘QPRC is one of five merged councils that has not had a rate variation either pre- or post-merger. Seven of the 24 merged councils have had SRVs in the last 2 years.’

    ‘We don’t want to reduce staff, we don’t want to cut services, we don’t want to close pools or reduce our maintenance budgets, but that’s the reality unless we do something about the income we receive.’

    ‘As elected representatives, we have a duty to ensure Council continues to pay the bills and provide the services the community expects from local government. We need to be in a position that will deliver more road maintenance, new footpaths and inclusive swimming pools.’

    ‘Council will be considering the Long-Term Financial Plan at the meeting next week, and then we will be going out to the community to get their feedback on these rate scenarios. The community will be able to make comments until the end of January 2023.’

    ‘Following community feedback, Council will determine an application to IPART about a rate variation in February.’