PORT Macquarie-Hastings Council's application for a special rate rise has been approved in full by the Independent Pricing and Regulatory Tribunal (IPART).
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The appoval means that the 7.3% rate increase which has been in place for the last two years will be permanently applied, and a further 4.43% increase will be applied for the next five years. These increases will be in addition to the government approved rate peg of 3.6%.
In excess of 2400 people made submissions to council on the proposed rate rise, with about 90% opposing the increase.
Based on the council's application, the approval means that for 2012-2013 the average residential rate will increase by $81, business rates by $163 and farmland rates by $105, compared with the rates paid in 2011/12.
Administrator Neil Porter says he understands not all sectors of the community will be happy with the news of the rate rise, but he believes the long term benefits are vitally important in correcting failing transport infrastructure.
"This determination means we can make a permanent commitment to major roads maintenance and start to address the backlog of additional transport works that are required, while maintaining the service levels across Council's other areas," Mr Porter said.
"This will allow the new Council to reflect the community consultation outcomes and deliver on the services the community expects" said Mr Porter.
Council's general manager Tony Hayward welcomed the rate increase.
"For our staff who are rate payers, who live and work in the community, the decision provides a level of security and commitment that will have a positive impact on the organisation as a whole," he said.
Wauchope Community Progress Association president, George Hegarty, said the Association is 'disappointed' in the IPART decision to grant Council the full rate variation. "The 15.33% increase will effectively double rates within 5 years," Mr Hegarty said.
"Only 14 Councils out of 152 in NSW applied for special rate increases and, of those that did, the application by the PMHC was the third largest sought.
"This decision will impact particularly on Wauchope, a town which already has higher that average unemployment combined with lower than average household income.
"This increase, combined with expected increases in electricity and other utilities as a result of the carbon tax, will be a significant cost burden on ordinary Wauchope and district residents."
