A CHANGE to the rate hike system to include population growth proposed by the independent pricing watchdog has been met with open arms by local councils.
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The amount local councils can collect from ratepayers is capped under the rate pegging system by the Independent Pricing and Regulatory Tribunal (IPART).
But, as the price of services, road maintenance and the rest goes up; councils like Tamworth, Liverpool Plains and Gunnedah have struggled to cover the costs.
The review would make Tamworth Regional Council (TRC) more financially sustainable, mayor Col Murray said.
"It's well overdue," he said.
"Under the current system the existing ratepayers are paying for all the services of the growing population, whereas this proposal IPART is looking at is a much fairer system where the new ratepayers contribute to the services they require."
IPART estimates that the change would have made NSW councils $115.9 million in the last four years.
Gunnedah mayor Jamie Chaffey said it's almost impossible to create income without stepping into commercial business.
"We don't want to make it unaffordable," he said.
"But if it's unrealistic to maintain the level of service and every 10 years you have to ask for a huge chunk of money under a special rate variation, it becomes more complex."
Tamworth Regional Ratepayers' Association president David McKinnon said he needed more information about what the implications would be, but said that he didn't understand why the current system wasn't working.
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The changes wouldn't have too much of an impact for the Liverpool Plains where population growth remains stable, mayor Doug Hawkins said.
He believes councils should be able to set their own rates after the council's application for an eight per cent rate hike for the next two years was approved by IPART last month.
"We slip behind because more services we have to provide are gradually put on local councils from the state government but there's no increase in revenue," he said.
IPART will hold a public hearing in July and present a final report on the proposed changes in September.
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Madeline Link
Madeline Link is a journalist at the Newcastle Herald, with a focus on Lake Macquarie City Council. To keep up with my stories, follow my Twitter @madeline_link, for tips email madeline.link@newcastleherald.com.au.
Madeline Link is a journalist at the Newcastle Herald, with a focus on Lake Macquarie City Council. To keep up with my stories, follow my Twitter @madeline_link, for tips email madeline.link@newcastleherald.com.au.
