To date the discussion on the SRV, as proposed, has centered on the increase of the Ordinary Rate over a ten year period. The other components of the Annual Rates will increase over that period as well but has been barely mentioned. Ratepayers are concerned about the amount of their rates, not just one component. My concern is the ability to pay in the medium to long term if the SRV is retained.
To illustrate the amount that my total rates will increase over the ten years, as in Councils examples, consider that my 2016 rates were $3,320, comprising the ordinary rate $1402 plus other charges of $1,918. When the Ordinary rate is compounded by 8% for three years and a further 7 years at 2% that figure increases to $2,028.The five other items on my 2016 rate notice totalling $1,918 will increase to $2,338 after ten years if compounded at 2% PA. My 2016 rate notice of $3,320 has now increased to $4,366, an increase of $1,046. Extrapolate the example a further 3 years and the increase is $1,313.This is best case scenario as the other charges will inevitably increase at a much higher pace.
Increasing the rates to an unsustainable level is not the answer. The consequences of failing to achieve the ‘Fit For The Future’ goal hasn’t been explained either. To use that requirement with the accompanying deadline as an argument for a hefty rate increase is unconvincing.
Ron Mitchell, Yamba