What are your views on a rate increase to cover services into the future?

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by Waverley Administrator 26 Jul 2010, 5:03pm

To cover the shortfalls on existing services for the next 12 years, weekly rates for the average household would need to rise by $1.49 each year for seven years (to cover existing services) or $2.46 (to cover existing and enhanced services).

More information about existing and enhanced services that would be covered by the rate rises, and what Service Plus is can be found in Fact Sheet 1

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Comments (46) Expand All Replies

bondi Comment 1 31 Jul 2010, 12:30 PM

After just receiving my rates notice for 2010/11 I was horrified to think that it could rise again. My rates are rising from $563 to $719 per quater which is 27%. My wages went up 3%! After living here for 29 years I feel I am being pushed out of Waverley. Rates should be collected per person living in a property. 10 people could live in a property and pay the same as the neighbour next door with only 3 people living there. They all use the facilities equally so it seems very unfair. If the Council do not have enough money, then cut the services that are not absolutely neccessary and concentrate on important infrastructure.

Project Manager, Community Engagement Comment 1.1 Funding Services 2022 Team 6 Aug 2010, 6:13 PM

Thanks for your feedback "bondi". It's true that households with more people can share costs more efficiently. People's living arrangements tend to change quite a lot though, so it's impractical to maintain up to date details for working out charges per person in each home. State government legislation obliging councils to set rates based on land value is not likely to change in the foreseeable future.

When the state government reviews land values, like it did recently, this will result in changes to the pattern of rates distribution. You have obviously experienced a very noticeable change in your rates because more…

 

bondi Comment 1.1.1 13 Aug 2010, 11:19 AM

Hello Project manager. Thanks for your reply. Being a big tourist area perhaps the Federal or State Governments need to help out with the big events or festivals or user should pay. My big problem with Waverley is the bad state of some roads, pavements and curbs and these should be a priority. They are ugly and dangerous and bring the whole area down to a very low level. My suggestion is to scale down all non essential services until this is rectified. I think many residents are at saturation point of bills. I do find it absolutely amazing that 50% of residents only pay $387.00 per year. That would hardly cover their rubbish collection and perhaps the Council should think of raising their rates to be fair on the rest of the rates payers, if rates have to rise. I feel that very few rate payers are actually active in the decision making of the council due to many different reasons. I feel a letter worded well in the rate notice would probably get more reaction and more people involved than this forum. Perhaps this should all be debated and voted on at the next Council election.

Project Manager, Community Engagement Comment 1.1.1.1 Funding Services 2022 Team 18 Aug 2010, 5:58 PM

Thanks for your suggestions Bondi. Street and footpath maintenance and repairs are an important area of focus for Council and we’re keen to improve this area as we’ve identified in our Waverley Together 2 vision. You may have noticed that we’ve identified this as a priority area in our “Services Plus” proposal. Thank you for your suggestion about direct communication with ratepayers and residents. We agree this is vital on such an important topic. We are currently distributing an information brochure to all residents and ratepayers of the Waverley area to make sure everyone has an opportunity to consider this proposal and comment.

bondi Comment 1.1.1.1.1 18 Aug 2010, 10:55 PM

Footpath maintenance, curbs and roads just don't seem to have enough priority in many parts of Waverley. They have been ignored for decades. Even the yellow paint sprayed to show that they need repairs has worn off in many cases. It is not good enough to make them part of Waverley together 2, service plus. This needs to be addressed immediately.I have written twice to the Council about this problem. The first time the letter was lost and the second time I didn't even get a response. I believe we need to live within our means and prioritise. Many projects have been added to Council in the last few years which is all very nice but the fundamentals are being ignored. Please return to the grass routes of Council responsibilities. There is also so much more money coming into the Council from restaurant pavement dining, parking metres, Council carparks, raised land rates etc, i just find it amazing that you need more!

davis Comment 1.1.1.1.1.1 30 Sep 2010, 2:44 PM

bondi, they have vastly higher priority than they did 10-15 years ago. Only in the last five years has Council seemed to make any reasonable attempt at resheeting bitumen roads (concrete roads are too hard) and fixing dangerous footpaths (most of which is caused by Council's own poor street tree selection, which is being repeated *again* now).

But calling it "service plus" is of course absurd.

Councils collect your garbage, sweep your streets and pave your roads. Everything (yes, everything) else is fluff. Some of that fluff is expected - beach/park maintenance, library services - but it's still tier two stuff.

Carlo Comment 1.1.2 16 Aug 2010, 7:38 AM

Dear project manager - would it be possible for the council to hand over a number of responsibilities to the private sector. Childcare, community transport, meals on wheels, affordable housing?

alec Comment 1.1.2.1 17 Aug 2010, 11:25 AM

Carlo, do you really believe that private sector will be doing a better job for a better price? The Council-run childcare facilities are charging $70.00 a day while privately run are charging $100.00 plus. I rather have my child in a Council- run facility, so No, I do not want the council to hand over this responsibility to a private operator

David Goldberg Comment 1.1.2.1.1 17 Aug 2010, 11:45 AM

Carlo is right in that the Council should not use ratepayers funds to subsidise child care fees for a small number of people some of whom may come from outside the area. This prevents funds being sent on footpaths and the roads.

Carlo Comment 1.1.2.1.2 3 Sep 2010, 4:28 PM

thats not the issue im raising. The fact council subsidises its services is the reason they now find themselves with a problem. It is simply not sustainable so why continue it when the private sector undertakes just as well if not better. This aside, i council was more facilitative in approving DAs for childcare centres, there would probably be more centres and this, in theory, lowers the cost of care

Carlo Comment 1.1.2.1.2.1 3 Sep 2010, 4:29 PM

Apologies, this was a response to Alec

Project Manager, Community Engagement Comment 1.1.2.2 Funding Services 2022 Team 28 Sep 2010, 12:01 PM

Dear Carlo, it would be quite possible for Council to hand over responsibility for child care, affordable housing, meals on wheels and community transport and perhaps even a number of other services to the private sector, if indeed they would take it.

The private sector already participates in these services when they see opportunities for profit of course. And we hope they will continue to participate as this will expand available choices and price competitiveness for service users.

However, the financial benefit to Council would be minimal in some cases and zero in others. For instance our affordable housing program is more…

 

Carlo Comment 1.1.2.2.1 18 Oct 2010, 10:18 AM

Dear Project Manager, thanks for your response. Reduce the beuracracy and red tape from local and state gov and i cann assure you the private sector will pick more of council services.

In terms of affordable housing, im aware developers contribute the actual housing, but who manages the housing, and how much time and money (rate payers money) does the council planner have to invest to negotiate a voluntary planning agreement.

In terms of child care centre, the private sector may operate the centre, but i believe its council that builds the centre or buys the land for such centres. Im also more…

 

swhr Comment 1.2 11 Aug 2010, 8:15 PM

some councils cap the maximum annual increase in rates due to increases in property valuations, mitcham council in adelaide is an excellent example of a lean council. they cap these increases to 12% pa.

Project Manager, Community Engagement Comment 1.2.1 Funding Services 2022 Team 17 Aug 2010, 8:56 PM

Thank you swhr - it's interesting to see how each state has a different approach to capping rates and making sure councils are as efficient as possible. In New South Wales it isn't possible for councils to have the flexibility that is available to councils in other states when it comes to raising rates. The state government here caps the increases to the total yield of rates that a council may raise. The caps are much tighter than in other states. Last year the NSW state government capped the increase in Waverley Council's rate yield to 2.6%. It's true, as more…

 

waving Comment 2 1 Aug 2010, 7:00 AM

Increase rates, however, reduce the impact upon the community by reducing expenditure on less essential service and Council service delivery and increasing variable income based upon full cost recovery.

David Goldberg Comment 3 4 Aug 2010, 2:45 PM

I have read the report and it is clear from talking to people that this is not just $2 increase per week. It appears our civic fathers are looking at a long term increases that would double the rates, let alone how much the waste charges have been going up. My street is so bumpy and pot holed you think you were driving in Africa. Where has the parking money been spent? Not on the roads and footpaths but a ritzy customer service centre and some palm trees in Campbell Parade.

thepres Comment 3.1 14 Aug 2010, 2:14 AM

Taking overseas visitors to Bondi Beach is embarrasing.

Weeds growing out of cracks in the pavements and walkways.

The Bondi Pavilion maybe heritage listed but it is a disgrace and should be pulled down.

Do our councillors ever go walking down there or do they just sit in council and think up cazy ideas.

The whole area should be redeveloped and the developers pay for it all.

Oh yes and get rid of The Greens on the council.

Thepres

Bronte Resident Comment 3.2 13 Oct 2010, 2:50 PM

David you are right the rate increases would be in seven years "70% higher than they are now to fund existing services" or "120% higher to fund all the enhancements" but this would not include additional increases based on increases in property valuations so the real increase could be much higher than this.

kris Comment 4 6 Aug 2010, 10:06 AM

As said rates to increase AGAIN are NOT sustainable to MANY people. people get a 3-4% increase in their salaries and Gov't dept. raise their services 20-40%??? Cut some non essential services that many are double-ups anyway, and get to provide what is really needed which in many cases leave lots to be said . We pay levies on this and that and honestly can see much doing for them either.

swhr Comment 5 11 Aug 2010, 8:27 PM

no rate increases. the council should live within its means.

David Owens Comment 6 15 Aug 2010, 8:59 AM

I believe Council needs to reduce its activities to core items, eliminating management of festivals, affordable housing and even child care centres. All these items can and will be provided by the private sector at a true cost without subsidy from rate payers. Council also needs to ensure it gets value from every dollar it does spend.

Having done that, Council must be able to fund its core activities and if the community demands various functions (rubbish collection roads etc) that is not covered by current rates, then rates should be increased.

QPR2010 Comment 6.1 15 Aug 2010, 1:20 PM

Could not agree more with this comment. The Council must stick with the core items and avoid the ones which are best described as 'nice to have' but not essential and which drive up the cost to ratepayers.

bell8 Comment 6.1.1 22 Aug 2010, 5:24 PM

Childcare, aged care and affordable housing are essential services. Just because YOU may not need them right now, it does not mean they are not essential community services.

These same people will complain if one day they need a service eg child care or a place in an aged care facility for their mum and it is not there or is unaffordable.

And who wants to loose the cultural activities and festivals that make Bondi such a vibrant place to live? These are not expensive to run and are appreciated by local businesses as they bring revenue (including tourists) into the community. So lighten up a bit guys!

Carlo Comment 6.1.1.1 3 Sep 2010, 4:31 PM

I need these services and i certainly would be complaining if i had to pay the private sector if it meant my rates were less

Carlo Comment 7 16 Aug 2010, 7:40 AM

I do not support a rise in rates. I do not see the benefit in paying the current rates so i can't imagine how council can manage additional funds productively.

colourbird Comment 8 22 Aug 2010, 11:35 AM

I pay rates to a number of councils in Sydney and interstate and i've always been amazed at how low my rates are here in Waverley in comparison to the others, considering the location and the value of the land here. Our current rates are above the Waverley average and looking at the last rates notices, even the highest proposed rise will not take my Waverley rates up to the level of the others! So it looks like we are on a very low rate to begin with.

jemma Comment 8.1 23 Sep 2010, 4:51 PM

As I noted at a different question, one thing Council is failing to mention to us is that Waverley is the highest density LGA in the country. That means that, with more ratepayers per sqkm than anywhere else, it ought to be able to provide more services for less rates than anybody else.

colourbird Comment 8.1.1 23 Sep 2010, 6:03 PM

That is an interesting point. I'd like to see a response. One area I have property in is the City of Rockdale. Many new units have gone up there in the last few years (mainly in and around Wolli Creek [the suburb, not the creek]), but rates have kept pace with the CPI. Logically it should have fallen each year as so many new dwellings have been built.

waving Comment 8.1.1.1 26 Oct 2010, 7:11 AM

Not necessarily. Increased services still need to be provided such as waste collection to meet the increase in population. I think overall, Council's have had to cope with the same increases in costs as us and its pretty obvious that rate pegging has impacted negatively on Councils capacity to generate sufficient revenue to keep pace with increased costs. The key has to be a focus on core services and a reduction in non essential services, particularly those best managed by state government.

colourbird Comment 8.1.1.1.1 26 Oct 2010, 7:25 AM

I see your point, but unfortunately in NSW, we can't say: "best managed by state government". If council can't afford to provide a service, our state government won't provide it effectively or efficiently. We would be better off if state (or federal) government provided the extra money to council to provide all these services. There would be a lot of money saved by reducing or eliminating state government. This money would then be available to spend on the community.

Bronte Resident Comment 8.2 13 Oct 2010, 2:53 PM

You forget that Council is also getting $14 million I think it is from parking fees and fines and that the average in Waverley looks low because it's actually an area where people live in flats that have low land value. So I disagree with this as a reason to increase rates and force people out.

Bondi John Comment 8.2.1 31 Oct 2010, 6:02 PM

I do not know if our rates are low or not but they are still a very big burden to me so I would not like to see them increased any more than is absolutely neccessary.

Policy Wonk Comment 9 22 Sep 2010, 12:01 PM

My comments elsewhere are also relevant to this question so I will not repeat them here. Rather this is an opportunity to make some technical comments and also unpack some of the assumptions in the Service Plus package.

Is it just me or do others think there is a distinct bias to the full Services Plus, rate rise and trust Council on everything else package?

To be clear, a $2.46 a week rise each year becomes a $17.22 a week rise by year seven. Yearly equivalents are $127.92 and $895.44 respectively. The amount sought is definitely significant in the out years. more…

 

jemma Comment 9.1 23 Sep 2010, 4:58 PM

It's not just you PW. I feel these are complicated matters being piled here into overly complex questions, answered too simplistically.

In this high density urban LGA I really do expect Council to be doing more with less than other LGAs, but I think it's true to say that we've heard of no options to increase Council's efficiency and effectiveness of service provision?

steveback Comment 10 12 Oct 2010, 5:58 PM

No rate increase, council has to live within its means like the rest of us. Stop wasting money painting pretty patterns on the roads and prioritise your services... more income will only lead to greater inefficiency.

prmpsa Comment 11 22 Oct 2010, 7:30 AM

Rates should be increased to maintain current services but not to fulfil the enhancements that were envisioned. Waverley ratepayers resent paying for the cleaning up of so much rubbish, damage and graffiti while our roads and footpaths remain in a shoddy condition.

save2022 Comment 12 23 Oct 2010, 9:29 AM

Waverely Council should not adopt the Service Plus option that has been mentioned, this is "pie in the sky" stuff, stick to covering the basic services of our area. We need to adopt more of a user pays system to cover increases in costs involved. I agree we will have to have minimal rate increases, but these to be linked to the CPI index

Hall Street Resident Comment 13 23 Oct 2010, 10:52 PM

Cost is rising, so we do need more services the question is how to fund all.

One way is to get reed of council all together & amalgamate, this will save money on duplication of services.

Or the council will have to think how to make money, in order to provide much needed services to the local community without increasing rates – fines – lodgement fee and etc. What we need is not criticisms of the council but creative thinking. And I think this is a forum, for this type discussions , it is easy to criticise or object , it much harder to provide solution and support .

Is no doubt, we all against rate hikes, so let’s create a forum , where we can all discuss how to generate extra income for our local council .

Peter Lalor Comment 14 24 Oct 2010, 9:32 PM

It is amazing how proponents of excessive 'tax and spend' big governments can trivialise their charges.

Dishonestly hiding the proposed real increases behind weekly figures is a misrepresentation of what people are likely to face.

Here is what they do not want you to hear;

Bronwyn Kelly, Director, Corporate and Technical Services at Waverley council quoted on streetcorner.com;

"....to implement council’s new expanded spending program..."

....“rates will need to increase over the next seven years by between 70% and 120%”

That equates to 50% of ratepayers paying an extra $416 per year more in rates, another 17% will be paying $728 extra per year, 14% will be paying $1,020 extra per year and the remaining 19 % will be paying increases well in excess of $1020 per year.

Considering Waverley Council is one of the most expensive councils in NSW, charging local residents more than nearly every other council, they must be crazy to contemplate increasing any income, variable or fixed.

See the figures for yourself here;

http://nowun.netau.net/

waving Comment 15 25 Oct 2010, 7:14 AM

Given increased requirements upon local government to assume more responsibility for what have traditionally been state and federal government responsibilities, perhaps Waverley rate payers could identify and reject those responsibilities and behalf of Council and redirect them to the most appropriate level of state or federal government. I appreciate that costs have risen and don't mind paying rate increases, but I do mind having to pay for services that are or should be the responsibility of other levels og government for which I contribute via taxes. Maybe its time for the state government in particular to stop shedding its responsibilities upon local government.

Localeye Comment 16 26 Oct 2010, 4:41 PM

I think it probable that most people would be in favour of maintaining or improving services but am concerned about the method of paying for same. Rates have always been based on land values which often have littlle relation to either the level of services utilised or the ability to pay. For example a home unit with relatively low rates might accommodate a lot of active people while a high rating free-standing home could house a widow or retired couple for whom an annual rise of $300 to $400 is extortionate. A compromise would be to charge the same flat increase (eg $70 pa) to all ratepayers and make up the rest by user pays increases on say, parking fees & fines, pavenment seating for cafes and charges for use of venues/facilities.

cpmo Comment 17 29 Oct 2010, 3:36 PM

No way, look at cuts within the existing infastructure of Council as the state public service has had to do over the last 4 years. Fund only essential services and stop the waste that goes on within Council and you may gain more respect for what you are doing. Council's have had and still have a reputation for being inefficient, overly bureaucratic, often corrupt and untransparent. Waverley is no different. Educational visits to sister cities, interstate and overseas conferences to all staff and Councillors should be banned as should be catering for meetings.

st80 Comment 18 31 Oct 2010, 2:46 PM

“What are your views on a rate increase to cover services into the future?”

For existing services from Council that are essential, then rates should only be increased in proportion to the increase in normal continuing business operating costs. Generally, these increases should be within the annual rate increase cap imposed by the State Government. These essential services are:

• Beach and pool maintenance

• Lifeguard services

• Development and building approvals

• Library services

• Parks maintenance

• Street and mall cleaning

• Tree and green space maintenance

• Parking services - (see below)

• Cemetery services – (see below)

• Waste collection services – (see below)

• Infrastructure asset renewal and maintenance

• Financial management and long term community planning

Of these services more…

 

Peter Lalor Comment 19 31 Oct 2010, 5:28 PM

“What are your views on a rate increase to cover services into the future? “

Before raising any rates these non essential services should be cut;

• Services for the aged, youth, Indigenous groups, multicultural groups and the disabled

• Child care and family support services

• Arts, cultural and volunteering programs

• Social and affordable housing services

• Management of major places, malls and villages

• Environmental management

• Emergency management services

• Events and festivals management

• Recreation and active living

• Traffic and transport management

After cutting these non essential services, rates should only increase at or below the state government imposed cap.

Bondi John Comment 20 31 Oct 2010, 6:06 PM

I cannot understand how most people could afford the rate increases Council is talking about. Who will be able to live here? I think rates should be kept as low as possible.

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