Wagga City Council can’t claim it is surprised by the Independent Pricing and Regulatory Authority’s decision to peg rate increases for the 2014/15 year at 2.3 per cent.
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For years, the tight pegging has been adding more and more pressure to local government budgets.
And while some councils have been able to secure special rate variations, many have had to cut back and reduce either services or infrastructure to meet the funding restrictions.
And perhaps this is the scenario facing the Wagga council which was quick to condemn yesterday’s announcement.
While there may be community expectations for a certain level of service and facilities, councils are in place to “balance the books” and achieve the best possible outcome from the available funding.
Wagga property owners have in recent years seen their rates skyrocket after the council was given the green light by the former state government to impose significant increases year on year over several years.
Most agreed the council’s rate base was inadequate, but having endured the pain of that financial gain, ratepayers were probably expecting some relief.
Well, think again.
Council has for some months been preparing the case for a special rates variation – and yesterday’s announcement of the 2.3 per cent peg will almost certainly see the issue back before councillors in the future.
Just like the family budget though, perhaps it’s time council had a much closer look at its expense line instead of going back to the ratepayer “well”.
Despite what council has claimed, the rate pegging of 2.3 per cent is actually above the annual inflation headline rate which, year-on-year in October, fell to 2.2 per cent.
It’s a challenge every family and every business faces – higher costs and a income, in relative terms, reducing.
And that’s why perhaps it’s time council started looking more closely at expenses.
There is never enough money to do everything the community demands, but\ just as council is finding it hard to balance the books, so too are many of the families it will no doubt turn to in its bid to find more cash for its coffers.