Rates Harmonisation Extraordinary Council Meeting 23 Feb 2021

 

4 motions were put forward at tonight's extraordinary council meeting and none were resolved. This reflected the challenge we are facing in harmonising rates.

 

Over January, the community overwhelmingly rejectied the proposal to introduce new min rates of $850/$820.

 

Tonight Greens proposed that we recognise this rejection and defer Harmonisation until after we run a referendum on the amalgamation at the elections in September.

 

Moved Porteous/Hesse
That Council:

1. Notes the significant community opposition to the proposal for rates “harmonisation"
2. Notes that Community Consultation overwhelmingly rejects the minimum rates tabled in point 3 of the Council officer’s recommendation (Minimum rates $850 residential/$820 business).
3. Recognises that the inherent unfairness of this “rates harmonization” process which results in the benefit of lower rates to some residents being at the cost of higher rates to others.
4. Notes that the only fair way to proceed is to remove winners and losers in this rates recalculation process and retain the existing rate structures of the three councils : Ashfield, Marrickville and Leichhardt Councils.
5. That Inner West Council therefore immediately writes to the NSW Minister for Local Government seeking permanent retention of the pre-amalgamation rating structures for the three councils.
6. That Council recognises that the “rates harmonisation” is the direct result of the forced amalgamation of the three councils: Ashfield, Marrickville and Leichhardt.
7. That Council therefore immediately writes to the NSW Minister for Local Government to request that a referendum be authorised at the forthcoming local government elections set for September 2021 to answer the question “do you wish Inner West Council to revert to its previous local government areas of Ashfield, Leichhardt and Marrickville
8. That Council writes to the Premier, Treasurer, Minister for Local Government and the Indepentsdendent Pricing and Regulatory Tribunal (IPART) informing them that Council is not able to implement their directive to implement the new rating system due to its inherent unfairness to the citizens and businesses of the Inner West.

The Government is only now proposing legislation to phase in rates harmonisation for amalgamated councils.

 

Domestic Waste Charges and services are yet to be consulted on.

Background

• Extraordinary Council Meeting (23 Feb2021)
• Consultation and Engagement report (Dec2020-Feb2021)
  

• Rates Harmonisation - Proposed Rating Structure and 20/21 Rates for individual councils. (25 dec 2020)
• Cost of Amalgamation of Leichhardt, Ashfield and Marrickville Councils
• Financial Statements Amalgamation Costs

"New" Amalgamated Council Temporary Special Guidelines for
setting a harmonised minimum

"Temporary Special Guidelines have been issued to new councils required to harmonise rates on 1 July 2021 and seeking to set a harmonised minimum ordinary rate across their new council area. The temporary Special Guidelines apply to new councils in specific circumstances only." - OLG (25 Nov 2020)

New Legislation to be introduced into Parliament

"If passed by the NSW Parliament, this Bill would:

• allow those new councils created in 2016 that have not already harmonised their rating structures to do so gradually over four years"

 Source: 20-42 Release of Exposure Draft Bill on local government rating reform