Murray River Council says their ability to fund all the services that local government provide will be impacted “to some degree” after the NSW Government announced a rate pegging limit of 1.5 per cent next year.
It comes as the Victorian Government announced a rates capping of 2 per cent for 2017-18.
“There has been some commentary on this issue from Local Government NSW and the pressure that this modest increase will have on the financial affairs of councils in NSW,” director corporate services Phil Higgins said.
The rates cap announced is lower than last year’s peg of 1.8 per cent.
The newly merged council declined to comment further as it remains under administration until local elections in September.
“As rates are one of the main sources of income for councils this will put pressure on service delivery and asset management,” Mr Higgins said.
Independent Pricing and Regulatory Tribunal (IPART) said continuing low inflation and minimal growth in council’s costs will limit the increase in the general income local councils can recover to 1.5 per cent in 2017-18.
To read more of this story, grab a copy of Wednesday’s Guardian (December 28).
