![Snowy Valleys mayor Ian Chaffey said the council must start making some tough choices about what services it can afford to provide to the community after a large special rate variation request was knocked back. File picture Snowy Valleys mayor Ian Chaffey said the council must start making some tough choices about what services it can afford to provide to the community after a large special rate variation request was knocked back. File picture](/images/transform/v1/crop/frm/172474527/5f907c29-e92b-4285-a4b9-27b6a8e7e549.jpg/r487_46_1113_455_w1200_h678_fmax.jpg)
A Riverina council has had its request for a special rate rise rejected as local government areas across the region learned the fate of similar requests this week.
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The Independent Pricing and Regulator Tribunal (IPART) has rejected a request by the Snowy Valleys Council (SVC) for a permanent special rate variation (SRV) of 42.38 per cent over a three-year period from 2024/25 to 2026/27.
Snowy Valleys mayor Ian Chaffey said the decision would leave an even greater hole in its budget.
"It's going to result in another $900,000 hole in our already deficit budget - taking that to around $3.5 million," Cr Chaffey said.
"It's going to force the council to look very seriously to the level of services it provides to the community, because the Snowy Valleys Council cannot continue to remain at a deficit as it has for the last eight years."
Cr Chaffey said in the past eight years, the council has "lost about $41 million."
"I think for too long, the council has been looking at the wants of the community rather than the needs," he said.
"We'll now have to look seriously at the way we go about our business, because no business, regardless of how it's funded can keep on making the losses that our council has made over the last eight years."
![Narrandera mayor Neville Kschenka has welcomed an approved special rate variation for his local government area, saying it will enable the council to continue with important works such as road maintenance. File picture Narrandera mayor Neville Kschenka has welcomed an approved special rate variation for his local government area, saying it will enable the council to continue with important works such as road maintenance. File picture](/images/transform/v1/crop/frm/172474527/2becb5cc-61b9-4171-9774-4f1928057e08.jpg/r0_356_2989_2467_w1200_h678_fmax.jpg)
Despite the rate rise knock back, the council will still be permitted to raise rates by the minimum rate peg of 5 per cent and will proceed with that.
Cr Chaffey said the council has received well over $100 million in grants for new infrastructure as a result of a series of natural disasters, from the 2019/20 bushfires, to COVID and floods, but said these all have an ongoing cost associated with them.
"It's very easy to accept all this money, but there is a long-term cost associated with it and unless we do something about it, it's going to be a continuing problem," he said.
Narrandera Shire and Griffith City councils were both granted a SRV, while SVC was knocked back and must abide by the minimum rate rise.
IPART approved a request by the Narrandera council for a permanent increase of its general income by 48.1 per cent from 2024/25 to 2025/26, and a further request to increase its minimum rates by approximately the same percentages.
Narrandera mayor Neville Kschenka said the council is "certainly happy with the outcome", which would be a financial boost for the council.
"With the extra income we'll be able to maintain our services that we've provided in the past," he said, noting there have been "lots of increasing costs that have restricted us in that area".
He said the funds would help the council maintain their roads and also secure a loan to upgrade storm water facilities.
Cr Kschenka said the approved rate rise will "hold the council in good stead for the future".
"There will be an incoming new council after the September [elections] and it will make life a lot easier for the council to be able to continue the services that people are accustomed to [having]," he said.
Meanwhile, Griffith was granted a lower cumulative increase of 22.1 per cent over the 2024/25 and 2025/26 years, rather than the requested 34.9 per cent over three years.
Mayor Doug Curran said while this might not have been the overall outcome his council was hoping to achieve, it was still a positive one.
"IPART has highlighted that the art gallery project compromised Council's justification for additional rate revenue in 2026/27," Cr Curran said.
"I think it's unfortunate that the third year was clouded by the potential art gallery, but we are two thirds of where we wanted to be," he said.
"I want to thank the many Griffith residents who engaged with Council throughout this process. It just reinforces that we need people to come forward for the Community Strategic Plan (CSP) review that we are currently undertaking.
"We need everyone to tell us what services they want us to provide so we can plan further out."
It came as IPART ruled on nine NSW council applications for special variations to increase their general income by more than the rate peg.
IPART chair Carmel Donnelly said the tribunal ruled on nine special variation applications, approving five, granting a lower increase to three, and declining one.
Two of the applications - including Narrandera Shire Council - were combined with minimum rate increase applications.
The tribunal approved one of these applications and approved a lower increase for the other.
"These decisions are based on our assessment against the Office of Local Government criteria, taking into account the issues raised by stakeholders during our submission period," Ms Donnelly said.
"The councils with approved increases are encouraged to consult with the community to decide how best to implement the allowed increase.
"It's important to note that elected councillors can choose when they implement the approved increase in rates income, including deferring any increases for up to 10 years and also how they set rates across the rating categories."
Every year IPART sets a rate peg for each council in NSW which caps the maximum amount councils can increase the general income they collect from ratepayers (rates income).
IPART set the core rate peg for 2024-25 between 4.5 per cent to 5.5 per cent.
There is also an allowance for some councils that experienced population growth.
If the elected councillors agree that a council needs additional revenue, the council can apply to IPART for a special variation to increase rates income by more than the rate peg.
IPART assesses special variation applications and minimum rate increase applications against criteria set out in guidelines issued by the Office of Local Government.
Reports on each of the nine council special variation decisions, two minimum rate decisions, and related documents are now available on the IPART website at ipart.nsw.gov.au.