Councillors have decided to ask the community for their thoughts on a plan to increase rates by 36.3 per cent over the next two years.
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The council's draft Long Term Financial Plan, which is also going out for public exhibition, states that without the rates increase, Tamworth Regional Council "would experience an average operating deficit of $11 million over the forecast period and run out of unrestricted cash around 2025-26."
At council's latest meeting, councillor Bede Burke said failing to address that shortfall would be "bordering on reprehensible".
Councillors voted to approve a series of information sessions to inform the community on the proposed rate increase, and make clear what residents would miss out on without it.
Depending on the results of that six-week community consultation period, councillors may decide to apply for what's known as a permanent 'Special Rate Variation' from price watchdog IPART.
"It's vitally important that people come to the information sessions so they can understand the impact of having the rate increase or not having the rate increase," mayor Russell Webb said at the meeting.
If the council does not apply for a special rate variation, rates will instead increase by an estimated 6.1 per cent over the next two years, and council will have less than two years to scale back services before it runs out of cash reserves.
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The local ratepayers association has accused Tamworth council of going for the rate rise without taking enough steps to save money first, though Cr Webb has repeatedly said council has exhausted all its options for alternative funding, including selling off assets, saving money, and cutting down on staff.
Cr Brooke Southwell echoed that sentiment at the meeting, adding that Tamworth council has managed to keep in a good financial position so far despite those cost pressures by having "some of the best general managers, management teams, and chief finance officers in Australia".
Building on that point, Cr Judy Coates also pointed out that Tamworth Regional Council has managed to keep rates lower than average for years compared to other regional towns like Orange and Dubbo.
"Tamworth Regional Council rates are lower than comparable communities and below the average ... unfortunately for council a lot of the costs we've incurred has been outside of our control," Cr Coates said.
Other councillors, such as Helen Tickle and Phil Betts, said council's costs have increased dramatically due to years of drought, flooding, and a global pandemic, and that council has an obligation to deliver high-quality services despite the challenge.
"We have to remain financially responsible, and consider how our population is still growing ... if we don't do this, where's the money going to come from, the sky?" Cr Tickle said.
"It's painful, but if we don't do it, services will decline. If this doesn't happen services like our roads will diminish," Cr Betts said.
However, not all councillors were on board with the decision, with Crs Steve Mears and Mark Rodda expressing dissenting opinions.
"I'm a ratepayer too, I'm on a single income family, and to me my rates are quite significant ... My fear is that a lot of people are already under financial strain," Cr Steve Mears said.
Cr Rodda took a more cynical approach.
"How much did the consultant charge to tell council to do the rate increase?" he said, calling the rate rise a "premature decision" made to maintain a budget surplus.
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