Four Port Macquarie-Hastings councillors are urging the community to have their say on the proposed rate freeze and are warning of the financial impacts this could have for the council.
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Councillors Rachel Sheppard, Nik Lipovac, Lisa Intemann and Lauren Edwards said they are concerned the community will be "blindsided" by the effects a rate freeze would have on the delivery of infrastructure projects.
The four councillors held a media conference at Town Green on Tuesday, May 7.
Cr Sheppard, speaking on behalf of herself and not the council, said a rate freeze is not in the best interests of the community.
"As detailed in February, the allowed 4.6 per cent rate peg wouldn't cover inflation and mandatory increases in wages - it's just not possible to freeze rates without cutting important and valued services," she said.
"It's really important our community takes the opportunity to give feedback about whether they prefer ratepayers get a $60 rate savings over a year, or whether they prefer we protect the services that need to be cut if we pursue this rate freeze.
"A rate freeze would impact services now and financially hamstring the next elected council from delivering."
At the February council meeting, councillors considered the motion for a potential rate freeze and moved a motion to request the CEO to prepare a Draft 2024-2025 Operational Plan with a 0.0 per cent rate peg applied to ordinary and special rates.
The draft plan is on exhibition until May 20.
The average residential ratepayer would benefit from $60 annually, or more than $2.7 million across the council area, if the council moves forward with a rate freeze.
Cr Lipovac said a rate freeze would be "financially irresponsible".
"It doesn't make the council sustainable going into the future," he said.
Cr Intemann said the proposed rate freeze would result a deadly backlog for the council.
"There is this bizarre move [from other councillors] to not take the rate peg increase, which means the council has to bear the brunt of the increases.
"It will starve council and will have impacts on council for decades to come."
Councillor Adam Roberts put forward the motion at the February meeting.
"The rate freeze is intended to do two things, one is to make sure council is working towards more of a roads, rates and rubbish approach and be more efficient on how we spend ratepayers funds in general," he said. "The second is that we are in a cost of living crisis and the view there is that we're doing as much as we can to keep money in the pockets of the ratepayers."
Cr Roberts said the council is "already delivering" more each year on "roads, water, sewer infrastructure and parks and gardens".
"With our cash reserves and our strong financial position as a council, I think a rate freeze is the least we can do," he said.
"If we find savings to cover that $2.7 million then everything stays the same."
Cr Roberts said the council deals with rates one year at a time and in his view, the council can "absolutely afford" a rate freeze.
"We're in a strong financial position as a council and that's why I'm confident there will be minimal impacts to the council's long-term viability," he said.
Cr Sheppard said the mitigation measures to cover the financial loss of a rate freeze would be cutting the community grants program, dangerous tree maintenance, recreation spending and road re-sealing.
"The rate freeze was an election promise from team Pinson councillors, however, we as a council have a responsibility to look to the financial health [of the council]," she said.
Cr Edwards said she is devastated at the prospect there would be no community grant funding in the next financial year if there is a rate freeze.
"Community projects and events delivered through community grants are essential to delivering on that vision," she said. "They empower the community to shape our cultural experiences and connections with one another."
The community is able to provide their feedback until May 20.
