Rodney Stevens

Clarence Valley Council Mayor Ian Tiley is calling on the NSW government to reverse its decision to scrap the Emergency Services Levy ESL which he says is another example of ‘cost shifting’ that slashes $77 million from the budgets of councils’ across the state.

Cr Tiley is putting forward a Mayoral Minute at the May 23 council meeting calling on his fellow councillors to support representations to the NSW government about the ESL which will cost council an extra $133,848 in 2023/2024.

“The levy increase for the State’s 128 councils in 2023/2024 amounts to almost $77 million, with the total cost imposed on the local government sector increasing from $143 million in the current financial year to $219 million next year,” the background to Cr Tiley’s motion states.

“This represents a 53.1 per-cent increase, completely dwarfing the IPART baseline rate peg of 3.7 per-cent for 2023/2024, and Council’s rate increase of 5.4 per-cent.”

For Clarence Valley Council CVC, the ESL has increased by $133,848 for 2023/2024, bringing the total council contribution to $1,765,080.43.

“This amounts to 75% of the expected increase in rate income for 2023/2024,” the background to the motion states.

“If the NSW Government’s decision is not reversed, the potential impacts on Council’s services, infrastructure maintenance and delivery include: parks and reserves maintenance, community facilities – halls and amenities maintenance and reactive road maintenance – pothole filling.”

Council’s peak body, Local Government NSW LGNSW says the decision to apply sky high increases to the ESL would be catastrophic for many councils and could see some become insolvent.

“This is an alarming development coming late in the council budgeting cycle and well after the IPART rates determination for 2023-24,” LGNSW President Darriea Turley said.

“This effect will leave some councils with insufficient funds to cover cost increases in other areas. These costs will need to be met by cuts to staff and services.”

Cr Turley said LGNSW is working with the state government to develop a fairer, more transparent and financially sustainable method of funding the critically important emergency services that benefit us all.

Cr Tiley’s proposed motion is that council writes:

1. to the Treasurer, the Minister for Emergency Services, the Minister for Local Government and local State Member(s):
2. expressing Council’s strong opposition to the NSW Government’s last-minute decision to impose an enormous Emergency Services Levy (ESL) cost increase on councils for 2023/2024 by scrapping the ESL subsidy for councils and at a time after Council has publicly advertised its Operational Plan and annual budget to the community;
3. noting that as a consequence of the unannounced 73% increase in the State Emergency Service budget and an 18% increase in the Fire and Rescue NSW budget, Council’s 5.4% rate increase to provide essential community services and infrastructure has been significantly eroded.
4. advising that the Government’s decision may/will lead to a reduction in important local services and/or the cancellation of necessary infrastructure projects;
5. calling on the NSW Government to take immediate action to: i. restore the ESL subsidy in 2023/2024. ii. urgently introduce legislation to decouple the ESL from the rate peg to enable councils to recover the full cost. iii. develop a fairer, more transparent and financially sustainable method of funding critically important emergency services in consultation with local government.
6. to the Chair of the Independent Pricing and Regulatory Tribunal (IPART) advising that Council’s forced emergency services contribution is manifestly disproportionate to the 2023/2024 rate cap, which has resulted in additional financial stress.
7. to the President of LGNSW seeking the Association’s ongoing advocacy to bring about a relief in the burden of Councils’ emergency services contribution.

The Independent will report on the outcome of Cr Tiley’s motion in the May 31 edition.