Rates have been frozen for 12 months and the Town Centre Master Plan (TCMP) levy retained, at least for now.
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Port Macquarie-Hastings Council made the decisions at its second extraordinary meeting in six days.
The council adopted a $288 million budget and associated documents on Wednesday, June 29 after deferring consideration of the matter on Thursday, June 23.
Wednesday's meeting also dealt with a rescission motion, put forward by Crs Rachel Sheppard, Lauren Edwards and Nik Lipovac, about the Town Centre Master Plan business rate review.
The council rescinded a motion not to include the TCMP levy in the draft 2022-2023 operational plan and consider the future direction following the completion of a review. The rescission motion was carried five to four.
The council, after another five to four vote, effectively kept the levy, pending the detailed independent review of the council's business rate model, historical TCMP processes and management structures, and comprehensive engagement with the community and stakeholders.
Property owners within the TCMP boundary in the Port Macquarie CBD pay the levy with the money used each year, alongside grants and other funding sources, to fund town centre works.
Cr Sheppard, speaking in favour of the rescission motion said: "In the ordinary council meeting, we resolved the exact opposite, the direct opposite, to the staff recommendation, and I believe the resolution amounted to ignoring the high-quality staff report, the independent expert advice and the clear and current feedback of our community."
She supported hearing from the independent review to inform future decision-making.
Cr Lipovac said there was overwhelming support from property and business owners and ratepayers to maintain the TCMP special levy, pending a comprehensive review.
Deputy mayor Adam Roberts spoke against the rescission motion, saying not enough information had come through to change his view that the council needed to abolish this rate, have the review and see what comes off the back of that.
Mayor Peta Pinson said 270 businesses paid the TCMP levy, and had been doing so for 30 years, while there were other businesses that didn't pay that levy and got the benefits.
She asked the councillors not to put more financial hardship on businesses.
Cr Lisa Intemann acknowledged some concerns about the TCMP as it stood, but said the council had also set in train an independent review.
Cr Sharon Griffiths said she thought the council needed to go through the review process.
Cr Josh Slade said the council should be helping the business owners.
A report is due at the October council meeting on the detailed independent review findings.
Budget adopted with 12-month rate freeze
Cr Pinson put forward for the council to adopt the suite of integrated planning and reporting documents with rates held at 2021-2022 levels from July 1, 2022 to June 20, 2023 and the retention of the TCMP levy.
"A rate freeze is absolutely appropriate at this time, as was giving some relief to our CBD businesses," she said, given the economic climate.
"That's not happening now [TCMP levy removal], and that is a decision of council, so I have to accept that."
Cr Roberts said roads were in a very poor state, and there had been a lot of natural disasters in this area, but the council had to pick up the pieces and continue to move forward.
"I think this is the budget to do it," he said.
"We have put a lot more money into roads, infrastructure, footpaths, tidying the place up after some devastating floods, and generally trying to work better and more efficiently for our community."
Cr Sheppard spoke about the financial impact of the rate freeze.
It will save the average ratepayer $20 and have a 10-year compounding cost to council of about $11 million.
Cr Danielle Maltman said the council had more than $400 million in the bank right now, and a rate rise, considering that financial position, just didn't pass the pub test.
She asked the elected body to represent the collective interest of residents, ratepayers and the community.
Cr Lipovac said the staff recommendation, with the TCMP levy and a 1.7 per cent rate rise, was the best way forward.
"We can't meet the increased service delivery expectations while limiting revenue-raising options," he said.
Cr Pinson said the council was going to have an unprecedented spend on roads, and start much-needed sewer and stormwater works.
"We also have record spend on footpaths, so we can get our people off the edges of roads and onto a safe place to walk."
The integrated planning and reporting suite of documents, with a 12-month rate freeze and TCMP levy retention, was adopted in a five to four vote.
The last order of business at the extraordinary meeting was a motion dealing with the 2022-2023 rates and charges and adoption of the Fees and Charges Revenue Policy. The motion was carried five to four.
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