The Independent Pricing and Regulatory Tribunal (IPART) has knocked back what it describes as a cumulative 37 per cent rate increase over the next seven years. 

“This stifles everything at the moment and we certainly had more compliments about the plan than detractors,” said Lockhart Shire Council Mayor Rodger Schirmer. 

“We have taken a serious affront that IPART suggests we weren’t truthful with the ratepayers,” he said. 

Mr Schirmer said 10 public consultation meetings were held and the additional outlay was described clearly in dollar terms. 

“We presented the ‘softest’ option our directors could come up with … the plan was to provide our own source of revenue to be self sufficient in nine years.”

WHAT’S AT STAKE:

“Until we can come up with another option these projects are on hold,” Mr Schirmer said. 

He said the decision was unfair and there was no right of appeal. “You could say this is a kick in the guts,” he said. 

IPART chairman Dr Peter Boxall said the council had proposed the special variation to partly fund three projects, but with the council estimating it has a $4.2 million net cash balance and zero infrastructure backlog, as well as forecasting operating surpluses over the next 10 years, IPART found it was likely to be able to fund the projects without a rate increase.

“In the case of Lockhart Shire Council, we are not convinced of the need for the proposed additional revenue and are concerned the community was not made fully aware of the extent of the cumulative rate increases.”