Councillors (Mark Croxford against) have endorsed Kiama Council applying for an Additional Special Rate Variation to allow for a rate increase of 2.5 per cent, rather than the 0.7 per cent rate peg which was unexpectedly imposed by the Minister in December last year [Lowest rate cap increase in 20 years].

Council’s Long Term Financial Plan, adopted in 2018, is based on an ongoing 2.5 per cent increase, and IPART had agreed to a rate cap of 1.6 per cent before the Minister’s intervention.

In March, lobbying by councils across the state resulted in the Office for Local Government allowing for councils to apply for a one-off Additional Special Variation to increase their rate rise to a maximum of 2.5 per cent.

If approved, the total 2.5 per cent rate rise will bring in just less than $500,000, which will be “used to fund the delivery of essential services and facilities for the benefit of ratepayers” according to the motion that was passed.

Of this, the difference between the original IPART approved rate peg of 1.6 per cent and the 2.5 per cent being applied for now is $174,451.