The caterwauling began with the early morning news bulletin on last Friday’s ABC South East Radio when the latest, greatest crime to be perpetrated by our wicked state government was exposed.
Bega Valley Shire Council was strangely quiet about the issue, although that was probably because
Mayor McBain was still on holidays. However, a review of the agenda for this week’s ordinary meeting of council revealed that the very first item was a
Mayoral Minute on the issue, echoing the claims made by others earlier that day.
The Mayor’s main complaint seems to be the failure of the state government to adequately forewarn councils of the proposed increase in the size of the levy & the alleged significant impact that the additional $143K cost would have on council services.
In a surprise departure from her previous normal silence on council finances, the Mayor asserted that the additional cost would represent an increase of 23% over last year’s levy although, in terms of its impact, the association thinks that a more honest comparison would be to view the proposed increase against the amount included in the draft 2019-2020 Budget, which would reveal a more moderate shortfall of $100K or 15%.
While the association believes the NSW Government’s handling of the increase in its Fire Services Levy was totalling inept, it also believes that the reaction of local government to the situation has bordered on hysterical, in particular the criticisms levelled against the government for a lack of timely disclosure of its plans.
And while the association acknowledges that
Mayor McBain’s reaction in suggesting that the
NSW Government agree to fund the levy increase for the next year is a lot less strident than that made by the
Chair of the
CRJO, it still believes that it is entirely unreasonable – even ungracious - given that less than a month ago when council was
tabling its 2019-2020 Budget, it was loudly singing the
NSW Government’s praises for the
“unprecedented level of funding being delivered in particular by the State Government through the Regional Growth Funds. This program is very positive for regional NSW as it provides the opportunity to deliver additional and upgraded infrastructure in a range of areas including transport, sport and recreation, buildings and tourism related areas. It also brings with it a necessary diversion of staffing resources to deliver the projects and potential impacts on forward planning for other projects including operations and maintenance.”
And while we’re at it, let’s not forget that it was also only a couple of months ago that the Member for Bega was running hither & thither across the electorate, dolloping-out millions of dollars to anyone who would care to ask.
As to the accusation about the inadequacy of the government’s communications about the increase in the Fire Services Levy, the association thinks that council’s behaviour is entirely hypocritical, given its own appalling record on communications.
No mention made by Mayor McBain or any other councillor
* that council was applying the maximum level of rate increase permitted by IPART of 2.7%, without any apparent consideration for the capacity
of ratepayers, particularly those who are retired or otherwise dependent on fixed incomes, to afford that level of increase;
* that Revenue from Rates & Annual Charges is budgeted to increase over last year by a huge 17.9%, while the increase over the past three
years is almost 26%;
* that Employee Benefits & On-Costs are budgeted to increase by a huge 11.2% over last year, while they have increased by 19% over the past
three years;
* that Borrowing Costs are budgeted to increase by a massive 83.5% over last year, while those same costs are budgeted to increase by more
than 46% over three years ago;
* that Other Expenses are budgeted to increase by a huge 72.1% over last year, while having increased by an extraordinary 171% over three
years ago; or
* that the combined cost of Employee Benefits & On-Costs, Borrowing Costs & Other Expenses is budgeted to increase by 26.4% over last year,
while those same costs are budgeted to increase by 42% over three years ago, with the total of those costs consuming a massive year-on-year
average of 50% of council's Revenue before Grants & Contributions for Capital Purposes.
No mention made by Mayor McBain or any other councillor
* that staff salaries & wages will increase by 2.5%; as might councillor’s fees;
* that ratepayers are expected to cough-up almost $500K to underwrite the ongoing entitlements of some council employees previously members
of the state government’s defined benefits superannuation scheme; an increase of almost $200K over this year;
* that “Other Expenses” of $14.8M reflect a $7.1M or 72.1% increase over this year’s Budget;
next year’s Budget;
* that Electricity & Heating costs (including street lighting) are projected to increase by $313K or 14.9% next year, while reflecting a whopping
increase of $600K or 33% in the previous two years; or
* that Insurance costs are set to increase by $165K or 11.5% next year, while reflecting a massive increase of $715K or 81% over the previous
two years.
While it’s said that people who live in glass houses should not throw stones, it would appear that council believes that such standards should only apply to others.
John Richardson
Secretary/Treasurer
Bega Valley Shire Residents & Ratepayers Association
Tel: 0264945669
Email: secretary@begavalleyshireratepayers.asn.au
Website: http://www.begavalleyshireratepayers.asn.au