9 November 2019 - Information Session

    Why are we harmonising rates along with only one other Council?

    The state government requires the new councils created in 2016 to develop a single rating system for their LGA by 1 July 2021. Council is seeking to create a consistent rating system that is a fairer approach for all ratepayers, regardless of dwelling or business type.

    As we became aware that we are facing longer term financial sustainability challenges, and the Hurstville Special Rate Variation (SRV) is due to cease in 2021, Council decided to proceed with the harmonisation and the application of an SRV commencing 1 July 2020.

    Seven of the 20 new Councils created in May 2016 have decided to harmonise their rating systems now rather than defer for one year.


    Minimum rate – no harmonising, if land value is valued because Hurstville and Kogarah are different? – Percentage above minimum rate? – Confusion over how rates are calculated for land vs minimum rate

    Council rates that are above the minimum are calculated based on the value of your land, as determined by the NSW Valuer General. The valuation process is no determined by Council.

    Updated land values are provided to Council at least every three years. The next revaluation is due to come into effect on 1 July 2020. Any significant fluctuation in your land valuations may have an impact on the amount of rates you pay. 

    You can find further information about the NSW Valuer General valuation process and how to request a review at the following website: www.valuergeneral.nsw.gov.au.

    Lack of information on specific rate in the dollar

    The rate in the dollar cannot be determined until the new land valuations are determined. 


    Not enough information has been given, all we want to know is how much extra are we going to pay?

    As rates outside the minimum are calculated on land value, the rates for each property are different. The impact on individual ratepayers will vary, and on average, ratepayers will pay between $1.00 and $3.00 extra per week.

    Currently ratepayers in the former Hurstville Council area on the minimum rate pay $570.88. In the former Kogarah Council area the minimum rate is $942.24.  To provide greater fairness and consistency the Council proposes that the minimum rate should be $965.80 (including a 2.5% rate peg increase) across the local government area, which would come into effect from 1 July 2020.

    The majority of ratepayers on a minimum rate are those in a unit/apartment or multi-dwelling.


    Hurstville vs Kogarah rate – paying double isn’t fair why not meet in the middle e.g. $750?

    The minimum rate proposed is in line with neighbouring council’s minimum rates and is closer to the average residential rate.


    Thought that rates determined by the Commonwealth – feeling that Kogarah was working very well but new services have gone downhill

    Council rates that are above the minimum are calculated based on the value of your land, as determined by the NSW Valuer General. The valuation process is something Council cannot influence.

    Updated land values are provided to Council at least every three years. The next revaluation is due to come into effect on 1 July 2020. Any significant fluctuation in your land valuations may have an impact on the amount of rates you pay.  You can find further information about the NSW Valuer General valuation process and how to request a review at the following website: www.valuergeneral.nsw.gov.au.

    Council has maintained services provided prior to the amalgamation, so there should be no change in the service levels in Kogarah.  If you have a concern about a particular service provided by Council please contact us.


    When you pay household insurance you pay a levy, if you don’t pay insurance, you don’t pay a levy – how is that fair?

    This is outside Council’s jurisdiction

    Rates = state government tax

    Each year, the NSW Government collects payments from councils and insurers to fund emergency services agencies in NSW, with councils required to pay 11.7 per cent of the budget required by NSW Emergency Services. These charges are embedded in council rates and insurance premiums. This financial year, Georges River Council’s emergency services levy contribution will increase by $227,000 to $2.341 million.

    Councils do pay mandatory fees to the State Government and is subject to many state and commonwealth taxes.

    Council rates are different from state and commonwealth tax as the amount we collect is capped. By contrast, If more petrol is sold then the state government collects more tax.  The state government has also collected far more stamp duty than anticipated in the last few years due to the development boom.  The amount of tax collected by the state government is not capped.


    Self-funded pensioners – there is no incentive under these circumstances

    The current low interest rate environment is affecting self funded retirees, other residents and businesses. However interest rates are not determined by Council.  Interest rates are a commonwealth issue.


    Questioning the cap, if the population increases the rates increase – need to provide an explanation of this

    Council’s total rate income is capped by the state government. We can only increase our total rates income above the annual rate peg if we seek a Special Rate Variation.  The increase in development and therefore population is not matched by a corresponding increase in rates.  By contrast, the state government has benefitted from the development boom of recent years with additional stamp duty revenue (which is not capped) this additional revenue is not shared with local government.

    This means that as the population continues to grow, needing more services and facilities, there is no extra income to pay for these services and facilities. This is one of the reasons we have the discrepancy between income and expenditure and why we are proposing a SRV.


    Business vs residential – different values

    The minimum rates in the smaller centres are the same as residential rates.  In Hurstville and Kogarah, it is proposed the have a minimum rate of $1,100.  However, the rate in the dollar above the minimum rate is higher for businesses than for residential property.

    In the Major Commercial Centres of Hurstville and Kogarah, it is proposed the have a different minimum rate of $1,100.  For all other rateable properties on the minimum, outside these centres, whether business or residential, it is proposed the minimum rate is the same.

    How come services have gone down – green strip not being serviced? State government – why are business rates less, they want all the roads and services but aren’t paying more than residential

    Council has maintained all services provided prior to the amalgamation, so there should be no change in the services.

    If you a concern about the way services are being provided in your local area please contact us with the details.

    In the Major Commercial Centres of Hurstville and Kogarah, it is proposed the have a different minimum rate of $1,100.  For all other rateable properties on the minimum, outside these centres, whether business or residential, it is proposed the minimum rate is the same.

    However, the rate in the dollar will vary based on what sub-category of business the rateable property is in and this can range from 2.5 sometimes 8 times the rate in the dollar amount of the residential. This is a policy decision reviewed by Council annually.

    Will it be the same in other councils? What will their business rates be?

    All amalgamated councils must create one consistent rating system by 1 July 2021.  Each council must determine their rating structure based around parameters set by the state government.


    Council’s income – does that include parking fees? They seem to contribute a huge amount in parking fees.

    Income from parking fees is counted as income.


    Why did we not specify the percentage for minimum rate increase? Can people pay this increase?

    Hurstville minimum ratepayers have a much lower rate compared to Kogarah minimum ratepayers.  Currently ratepayers in the former Hurstville Council area on the minimum rate pay $570.88. In the former Kogarah Council area the minimum rate is $942.24.

    To provide greater fairness and consistency the Council proposes that the minimum rate should be $965.80 (including a 2.5% rate peg increase) across the local government area, which would come into effect from 1 July 2020. This would mean that everyone in Georges River has their rates calculated the same way.

    Council has adopted policies to assist when a rate payer cannot pay their rates.


    Can council provide the model that determines how the rates for developers are affected by the increase in total rates?

    Council’s total rate income is capped by the state government. The increase in development and therefore population is not matched by a corresponding increase in rates. We can only increase our rates if we seek a Special Rate Variation. 


    Does this apply to all charges on the rates notice?

    No, the Special Rate Variation only applies to the rates component.


    When we consulted on the CSP, we should have been limited to what council could afford – it seemed to be open-ended

    The workshops for the CSP took a ‘blue sky’ approach.  We were trying to get people to imagine the type of future they want for the area.  Also, strategy should lead budget, otherwise great things don’t get done.


    Do businesses pay the stormwater levy?

    Yes

    What do childcare services cost (net cost)?

    Georges River Council’s current Children’s Services portfolio is operated as a cost-neutral service; where childcare fees are paid by families utilising the service to fund their operation and any surplus is used to maintain the childcare facilities. Council is currently constructing a new service, Oatley West Childcare Service located at 66 Mulga Road, Oatley. The facility is scheduled to open in April 2020. During the first two years of service the facility will run at a small deficit ($40,000) but is scheduled to operate as a cost neutral service in future years.

    Can we introduce a more user pays system, especially for more sophisticated facilities e.g. why should all sporting bodies and ratepayers pay for all the new facilities?

    Council will be exploring many options to raise more income.

    Is Council trying to fill the huge financial hole caused by past decisions e.g. pursuing Oatley bowling club, buying the Oatley childcare centre and discretionary ward grants to outside organisations in other LGA’s e.g. Campsie and Gymea?

    The basis of the SRV is to increase the income received from rates, which is the only stable income source received by Council.  This will provide more income for the provision of future services to provide a more sustainable future.


    What is the Local Government Association and Georges River Council doing to change the rate pegging?

    Local Government NSW has made many submissions to the state government on this issue for some years.


    Why can’t developer contributions be increased?

    Council is currently reviewing the developer contributions.  Under the Environmental Planning and Assessment Act these funds however can only fund a certain type of capital works and do not pay for the operation of the facilities and many services the Council provides.


    Hasn’t the GRC met the housing quota?

    Georges River Council has a target of 14,000 additional dwellings by 2036.  Plans are being prepared to demonstrate how this target can be met.


    We were told amalgamation would result in savings, why out of the rates now going up? Can’t we de-amalgamate?

    While Council has made savings as a result of the 2016 amalgamation, these have not kept pace with the increase in costs in providing services, especially as our population continues to grow.


    Re-business rates – GRC charges are one third of other councils on average – why can’t business rates go up?

    Council’s rate base is currently split with 94% from residential rate payers and 6% from business rate payers. The rate in the dollar will vary based on what sub-category of business the rateable property is in and this can range from 2.5 to 8 times the rate in the dollar amount of the residential. Council currently has two different business sub-categories and is proposing a new structure that will ensure equity and rates in the dollar are reflective of economic activity.  This is a policy decision that is reviewed by Council annually on an ongoing basis and will also be reviewed in line with the proposed rate structure for 2020/21.


    Stormwater residential charge – why isn’t it charged to businesses as well?

    Businesses pay the stormwater charge.


    Why is there a moratorium on issuing fines to developers e.g. sediment fines, certifier signs missing not enforced?

    There is no moratorium.


    Why are there no staff visible in the community e.g. Oatley Park, especially the Adventure Park?

    Council staff work across the whole LGA at various times of the day and week.


    Why haven’t GRC asked for the $5m for Carss park Pool?

    Council has not yet made any final decisions about the replacement of the Kogarah War Memorial Pool (Carrs Park).


    The indoor cricket facility is not open space. Isn’t it a private facility?

    The facility is owned by Council and is open to the public for hire in a similar fashion to other like facilities such as aquatic facilities, halls and community centres.


    Chillout hubs – where are the trees around them?

    Planting trees around the hub will improve local amenity.


    Can you put on more compliance officers – it would also bring in more money?

    Council is considering a number of opportunities to raise revenue.


7 November 2019 - Information Session

    Why is there a difference in what is reported as the cost of Oatley Park Adventure playground and in the presentation? ($1.4 M/$2.5 M)

    If there was a discrepancy, this would’ve been an error. The total cost of the Oatley Park Adventure Playground is $2 million.


    Why isn’t the interest income higher than that reported in brochure when $102M is invested?

    As at 30 September 2019 Council had $175m in cash and investments. Currently the portfolios annualized rate of return is 2.6%. The interest income budget forecast is based on the capital expenditure budget and the RBA set cash rate. As the cash rate is at a historically low rate, investment return is likely to continue to decline over the coming years until the cash rate increases.

    Why did Council buy the Baptist Church when there wasn’t enough money?

    The purchase of the Baptist Church site (at the corner of Dora Street and Queens Road) was a strategic purchase to consolidate all land within this significant street block.


    Garden and street sweeping has declined from the old Kogarah Are we going to have assurance that services will improve rather than stay the same?

    Council has maintained services.  If you have a concern about the quality of service or level of service Council provides please contact us and let us know.


    Why does the consultative process take so long for Jubilee Park?

    Council always follows due process and will ensure that adequate information is obtained before making any decision.


    Why is the Hurstville minimum rate so much less than Kogarah?

    Since the amalgamation of Kogarah and Hurstville Councils in 2016, Georges River Council has been required to maintain two rating systems for the LGA. We must create one consistent rating system by 1 July 2021 to ensure a fairer approach for all ratepayers, regardless of dwelling or business type.
    Council currently levies two different ordinary and special rates based on the former Council’s rating systems. The 2019/2020 financial year minimum rate for the former Hurstville City Council is $570.88, and is $942.24 for former Kogarah City Council.

    To ensure equity in the rates and annual charges across the Council LGA a harmonised and equity based minimum rate and rate in the dollar is being proposed, for residential and business categories, along with a different minimum rate for a new Commercial/Strategic Centre sub-category. These changes are based on the LGA’s centres of activity and high mix of units and single dwellings.

    Why is poor quality development being allowed? (more landscaping and setbacks)

    Council is currently preparing a new Local Environment Plan and Development Control Plan and better landscaping and more green outcomes will be included in these plans.


    How can we make new development contribute to better foot paths and other improvements for the local community?

    Development makes a contribution to improved infrastructure through the Development Contributions Plan.  Council is currently preparing a new development contributions plan for the Georges River Area.


    If we pay the increase in rates will we see improvement in the foot paths, trees, seats (local amenity)?

    The recommended option to the community for the Special Rate Variation assumes that the Council will continue to maintain current service standards this includes programs for improving footpaths, trees and other public domain elements.


    How do we get more services for area e.g. street cleaning?

    If you have a concern about the quality of service or level of service Council provides please contact us and let us know.


    Should Council reconsider its position on population growth? Is it sustainable?

    The state government sets housing and population targets for each LGA in Sydney.  These are based on the expected growth of Sydney.  If Council does not allow for this growth then the State Government may impose new planning rules on the community to achieve this growth.


    When we merged we received $8 M from the State and dollar 15 M savings in waste. How has this come about?

    Georges River Council was proclaimed on 12 May 2016. The NSW Government provided two grants to assist Council and the community in the transition to a new entity.

    The New Council Implementation Fund (NCIF) is a $10M program used to fund activities that support the implementation of the new Council. This funding contributed to the integration and improvement of systems and technology, strengthening policies and procedures, improving governance, communications and branding, and for building a culture of customer service among Council staff.

    A further $10 million was provided by the NSW Government under the Stronger Communities Fund (SCF) to deliver priority community infrastructure and services. With these funds, and in partnership with many local community groups, we have improved the liveability of our unique city. The SCF program was divided with an allocation of $1million in grants to community organisations for projects that help build vibrant local communities. The applications for these grants were assessed by an independent panel including a probity advisor. These funds have been allocated to 27 community groups, generating projects totalling approximately $3million.

    The remaining $9 million of the SCF was allocated to larger-scale priority infrastructure and services that deliver long-term economic and social benefits to the community.

    In July 2018 Council was successful in obtaining a further $9.5million under the SCF to complete additional infrastructure projects.

    What is happening with car parking in Hurstville? (Limit to 3 hour parking)

    Council is currently considering a parking strategy which will address the parking needs for the community.


    How do we save money in legal representation in land and environment Court when new framework is being implemented?

    Council minimises legal costs through the appropriate use of  legal representation and ensuring decisions, policies and procedures are legally robust.


    Based on option 1, Kogarah minimum rate is 8.1 Is the special rate variation applying to everyone across the board?

    No.  The special rate variation is an increase on the total rate income collected by Council. It is not a levy on each rateable property.

    The minimum rate for Kogarah will be increased by 2.5% all other minimums and rate in the dollar will be increased to contribute to the 8.6% special rate variation. Some properties will have an increase higher than 8.6%, as this is based on the new land value or the new minimum rate.


    Is the $132 in option one applying to Hurstville only or everyone?

    The special rate variation is an increase on the total rate income to be collected by Council. It is not a levy on each rateable property, nor does it apply to only some properties.  Impact on individual properties will vary.

    The quoted $132 is an average across the entire Local Government Area. Ratepayers currently on the minimum in Hurstville will have an increase above the average. Those not on the minimum will be mainly impacted by the results of the new land valuations.


    If I am $965 in Kogarah, that means that I am not paying the extra $132?- This isn’t clear from the literature.

    Kogarah rate payers currently on a minimum of $942, are proposed to increase to a new minimum of $965.80. This does exclude businesses within the Commercial Centre of Kogarah who are proposed to have an increase to $1,100 minimum. This will be the same for the Commercial Centre of Hurstville.

    Clarification that the 8.1% only happens in the 1st year, thereafter 2.5%

    Yes, that is correct. In following years the rate peg will apply only.


    Where did Hurstville Council get it so wrong for 15 years?

    This was a decision of the past Council.  It is the role of Georges River Council to ensure that we are financial sustainable for the future.


    The population of the LGA is approximately 155,000 with 15 Councillors; City of Sydney has 10 Councillors for 260,000 – couldn’t we have less Councillors and give them different responsibilities? – it seems that a Council from one ward doesn’t know anything about another ward.

    When the state government created Georges River Council it determined that there should be 15 Councillors.  This was not council’s decision.


    Discrepancy between Kogarah and Hurstville – have Kogarah been subsidising Hurstville?

    The key difference in the rate structures is that the minimum rates are quite different.  These means that properties not paying the rate, such as most single detached houses were paying a higher rate in the dollar in Hurstville than in Kogarah.


    Forced amalgamation – Kogarah only 6 representatives vs 15 Hurstville, therefore decisions are skewed in favour of Hurstville.

    The 15 Councillors of the Georges River Council represents the whole community.


    Services on the Kogarah site have been absolutely decimated?

    Council has maintained services.  If you have a concern about the quality of service or level of service Council provides please contact us and let us know.


    How are boarding houses valued?

    All properties pay rates based on the value of land. Boarding house would pay a similar rate as the adjoining property assuming it had a similar land area and other characteristics.


    How many ratepayers in the area?

    The are 53,000 rateable properties in the Georges River Local  Government Area

    When you hold community strategic planning panels, put the proviso in that you want X, Y and Z in planning, be prepared to pay for it in a rate increase.

    The workshops for the Community Strategic Plan took a ‘blue sky’ approach.  We were trying to get people to imagine the type of future they want for the area.  Also, strategy should lead budget, otherwise great things don’t get done.


INFORMATION SESSION QUESTIONS ANSWERED

    How did we decide on the services and new assets?

    Every four years, following extensive consultation with our community, Council adopts its Community Strategic Plan which details the community’s aspirations for the Georges River area for the next 10 years. The Community Strategic Plan can be viewed here or by visiting Council’s website.

    This Plan highlights many community projects, programs, initiatives and events that require substantial funding to become a reality.  These projects and programs are then outlined in the Delivery Program 2018/19 to 2020/21 and Operational Plan 2019/20 which can be viewed here or by visiting Council’s website.

    The final decision to approve projects rests with the elected Council.  Council meetings are open to the public and can be live streamed.

    Is this a one-off increase?

    Yes, it is a one-off permanent increase in 2020.  The following (2021) year the rate increase will only be the rate peg amount.


    How are service cuts going to be decided?

    If council must cut services because we are unsuccessful in our recommended option for the SRV (ie 8.1% SRV and 2.5% rate peg for as 10.6 % total increase), we will work with the community to determine which services can be reduced.  This may include closure or reduced hours of operations or ceasing some services completely.


    How are we going to manage development when it strains costs?

    The State Government has set growth target for all councils in Sydney.  Council is committed to ensuring that we managing this growth so as to protect the character and environment of Georges River.  How we will do this is set out in our Local Strategic Planning Statement, which can be viewed here.


    As a community we should seek to petition the state government to change the act around land values, potentially through the local member.

    If residents are concerned about the current laws around the land valuation process and the rating system we would certainly encourage them to start a petition and speak to your local members of parliament.  Our association, Local Government NSW, has made many submissions to the state government on this issue for some years.


    User pays for events (gold coin) – charging community members?

    Most events are conducted on public land that is unenclosed therefore making this difficult to enforce.  We are looking for more sponsorship, to help to defray some of the costs.


    Incentive for paying rates upfront e.g. whole year in one hit

    Due to low interest rates, there is no financial benefit to Council for residents paying their rates upfront and if we provide a discount to upfront payments, this will simply further reduce the income.

    What happens if there is a lot of community opposition? What is the alternative?

    If Council is not successful in its application to IPART, Council’s overall expenditure will need to be reviewed, and to achieve the necessary cost savings services will be reduced.

    What else is council doing to assess what the service level is that people want?

    We are constantly reviewing our services and seeking feedback on existing and new initiatives. This leads to adjustments.  However it would be fair to say that most requests we receive from the community is to increase services and service levels.

    If people understand what 22% means, what does it look like to drop to the preferred option – it must mean a change in service levels?

    In relation to council’s recommended option, Council will need to find cost savings of about $12million over 10 years.  We think this is possible without having a significant impact on services to the community.

    What happens if IPART comes back with restrictions in terms of SRV?

    If Council is not successful in its application to IPART, Council’s overall expenditure will need to be further reviewed.


    Is council considering reviewing changes to charges for pools etc in light of how much the facility costs to run and subsidising less?

    Yes, council reviews all fees and charges every year. 

    What else is council doing to advocate to state government on rate capping that is impacting on the budget?

    Council and Local Government NSW have made many submissions to the state government on rate pegging.

    Premier said it was going to be a win – has the Council looked at ways of reducing governance costs?

    Council made cost savings following the amalgamation of Hurstville and Kogarah Councils in May 2016.  Council has also established a “Financial Sustainability Working Group” to explore options on strengthening Council’s long-term financial sustainability. Information on Council efficiencies to date can be further explored here:


    Can we increase Section 94? Rates to be increased to cover some of the costs.

    Council is preparing a new development contributions plan.  While this is likely to increase income, this can only be used for capital items such as new buildings, roads and new open space. It cannot be used to operate or maintain the many facilities and services Council provides.

    How strict is the procurement team in obtaining the best value?

    Best value is the key component of our procurement policies.  We seek more than one quote and in the case of larger projects we undertake a public tender.

    For the Hurstville variation – what was the reason?

    • Why has it stopped
    • What does that represent as a %

    The instrument for the SRV of the former Hurstville allowed the Council to increase its rate income by 9.95% ($1.6m) in 2006/07. This raised an additional rate income for costs associated with infrastructure maintenance and renewal. The condition of the increase was that it would only last for 15 years.

    Based on this instrument Council would have to drop approximately $2.2m off its rate income. This equates to over 3% of our current income.

    What is the current rate variation?

    The instrument for the SRV of the former Hurstville allowed the Council to increase its rate income by 9.95% ($1.6m) in 2006/07. This raised an additional rate income per year at the time for costs associated with infrastructure maintenance and renewal. The condition of the increase was that it would only last for 15 years.


    Explanation of population increase vs rate question – clarity of calculations?

    Council’s total rate income is capped by the state government. We can only increase our rates if we seek a Special Rate Variation.  The increase in development and therefore population is not matched by a corresponding increase in rates.  While the state government has benefitted from the development boom of recent years with additional stamp duty revenue (which is not capped) this additional revenue is not shared with local government.

    This means that as the population continues to grow, needing more services and facilities, there is no extra income to pay for these services and facilities. This is one of the reasons we have the discrepancy between income and expenditure and why we need the SRV.


    There hasn’t been adequate justification, when is council going to publish a list of prioritised work with costings (Must do’s)?

    Priority projects and programs are outlined in the Delivery Program 2018/19 to 2020/21 and Operational Plan 2019/20 which can be viewed here or by visiting Council’s website.


    Why is it council’s responsibility to run childcare centres?

    Council operates centres of early learning with a strong focus on providing safe environments with experienced early childhood professionals for children five years or younger. Places are available in the centres for children with special needs. Historically, Council has provided this care to fill a gap in the market. They are known as high quality services and are very popular with local families. The new early learning centre in Oatley West, currently under construction, will meet an identified need in the Georges River community.


    Capital spending vs renewable spending

    Council spends money on new assets and the maintenance of existing and the replacement of old assets.  The replacement and major upgrades of existing assets are often referred to as renewal.

    Difference between house rates and unit rates?

    Council uses the method of ad valorem and minimum rates to determine what rates are paid by each property owner. Under this method, we must impose a rate per dollar (ad valorem) of land value, with a minimum amount.

    The rate per dollar calculation uses the land's valuation.

    If the valuation multiplied by the rate per dollar falls below the minimum rate, a minimum rate will be charged.  Because units, flats and apartments own just a small portion of a lot of land, the calculated rate is usually below the minimum.  Therefore they pay the minimum.

    The value of your land is determined by the NSW Valuer General. The valuation process is something Council cannot influence.

    Updated land values are provided to Council at least every three years. The next revaluation is due to come into effect on 1 July 2020. Any significant fluctuation in your land valuations may have an impact on the amount of rates you pay.

    You can find further information about the NSW Valuer General valuation process and how to request a review at the following website: www.valuergeneral.nsw.gov.au.


    Why are minimum ratepayers hit the hardest with the rate increase?

    Hurstville minimum ratepayers have had a very cheap rate compared to Kogarah minimum ratepayers.  Currently ratepayers in the former Hurstville Council area on the minimum rate pay $570.88. In the former Kogarah Council area the minimum rate is $942.24.

    To provide greater fairness and consistency the Council proposes that the minimum rate should be $965.80 (including a 2.5% rate peg increase) across the local government area, which would come into effect from 1 July 2020. This would mean that everyone in Georges River has their rates calculated the same way.


    Is it feasible to cut the costs to make the difference?

    Council made cost savings following the amalgamation of Hurstville and Kogarah Councils in May 2016.

    Council has also established a “Financial Sustainability Working Group” to explore options on strengthening Council’s long-term financial sustainability. Information on Council efficiencies to date can be further explored here:

    However, it will not be possible to find the efficiencies and savings of the $20million required without impacting on services.


    Have you given staff the opportunities to give input? Staff incentive scheme

    Yes, the staff are engaged in ways to improve services and reduce costs.


    Will I still get the pensioner rebate?

    Yes, residents who hold a pensioner concession card are entitled to apply for a rate reduction, which is split into two components: the Mandatory Government Rebate of $250, and the Council’s 2019/20 voluntary rebate of $150, against the annual domestic waste management charge. Council has resolved to review the voluntary rebate annually.

    For more information about applying for a rates concession rebate, please see the Pensioner Concession Rates Rebate Application form and the

    Rate Relief Hardship Application (including eligible pensioner) Statutory Declaration.

    Do the rates go up with units?

    Council’s total rate income is capped by the state government. We can only increase our rates if we seek a Special Rate Variation.  The increase in development and therefore population is not matched by a corresponding increase in rates.  While the state government has benefitted from the development boom of recent years with additional stamp duty revenue (which is not capped) this additional revenue is not shared with local government.

    This means that as the population continues to grow, needing more services and facilities, there is no extra income to pay for these services and facilities. This is one of the reasons we have the discrepancy between income and expenditure and why we need the SRV

    Do you people realise what we have to live on – pensions and benefits?

    Council is aware that many people have financial difficulties at various stages of their lives.  In additional to the pensioner rebate, the council also has a Debt Management and Hardship Policy which provides other ways that persons  experiencing hardship can pay rates or other debts, including deferred payments and payment plans.

    Why can’t council live within its means? – We all do

    Council made cost savings following the amalgamation of Hurstville and Kogarah Councils in May 2016.

    Council has also established a “Financial Sustainability Working Group” to explore options on strengthening Council’s long-term financial sustainability. Information on Council efficiencies to date can be further explored here:

    https://www.georgesriver.nsw.gov.au/StGeorge/media/Documents/Council/Publications/Amalgamation-Journey-Final-Report-compressed.pdf

    However, it will not be possible to find the efficiencies and savings required without impacting on services.  Therefore if we are unsuccessful in obtaining a SRV, then we will reduce cost by reducing or cutting services.

    Is 10.6% a one-off? Can you explain that?

    Yes, it will only be a big increase next year, then the increase will return to the rate peg amount on the new higher base rate.

    Why doesn’t Hurstville have a surplus now as before?

    For the financial statement for 2014/2015 for the Hurstville Council show that the council had budgeted for a $3million operating deficit.  With some unplanned sale of asset and additional fees and interest on investments the Council was able to achieve a $1m operating surplus.  However long term financial sustainability cannot be based on the sale of assets.


    2.3% to 10% is a big increase?

    It sounds like a lot, but the impact on individual ratepayers will vary, and on average, ratepayers will pay between $1.00 and $3.00 extra per week.

    Currently ratepayers in the former Hurstville Council area on the minimum rate pay $570.88. In the former Kogarah Council area the minimum rate is $942.24.

    To provide greater fairness and consistency the Council proposes that the minimum rate should be $965.80 (including a 2.5% rate peg increase) across the local government area, which would come into effect from 1 July 2020.

    The majority of ratepayers on a minimum rate are those in a unit/apartment or multi-dwelling.


    It should be a minimum increase eg $5 per month

    The impact on individual ratepayers will vary, and on average, ratepayers will pay between $1.00 and $3.00 extra per week

    Why is Hurstville increasing more than Kogarah?

    Hurstville minimum ratepayers have had a very cheap rate compared to Kogarah minimum ratepayers.  Currently ratepayers in the former Hurstville Council area on the minimum rate pay $570.88. In the former Kogarah Council area the minimum rate is $942.24.

    To provide greater fairness and consistency the Council proposes that the minimum rate should be $965.80 (including a 2.5% rate peg increase) across the local government area, which would come into effect from 1 July 2020. This would mean that everyone in Georges River has their rates calculated the same way.


All FAQs

    What are the proposed changes to Council’s rates?

    Council will seek approval to apply a standard minimum rate for all ratepayers across our local government area, and to increase the total rate income by 10.6 percent (8.1% Special Rate Variation (SRV) and 2.5% annual rate peg), with these changes to come into effect from 1 July 2020.

    The impact on individual ratepayers will vary, and on average, ratepayers will pay between $1.00 and $3.00 extra per week.


    Why are these rate changes required?

    Since the amalgamation of Kogarah and Hurstville Councils in 2016, Georges River Council has been required to maintain two rating systems for the local government area. We must create one consistent rating system by 1 July 2021 to ensure a fairer approach for all ratepayers, regardless of dwelling or business type.

    The current level of funding generated for Council through rates is insufficient to deliver existing services into the future.  Costs are rising faster than income and this is impacting on Council’s long-term financial sustainability.

    Council’s income to support the provision of community services and new facilities also reduces by $2.2 million in 2021 when the Hurstville SRV that is currently in effect ceases. Over the 10 year period of the Community Strategic Plan, the total income reduction is forecast to be over $19.5 million. 

    Other incomes such as the Federal Assistance Grant and the grants from State government cannot be relied upon to sustain operational expenditure. Should we do nothing, Council and the community will inevitably be faced with very difficult decisions to reduce services.

    How much will my rates go up?

    The impact on individual ratepayers will vary, and on average, ratepayers will pay between $1.00 and $3.00 extra per week.

    Currently ratepayers in the former Hurstville Council area on the minimum rate pay $570.88. In the former Kogarah Council area the minimum rate is $942.24.

    To provide greater fairness and consistency the Council proposes that the minimum rate should be $965.80 (including a 2.5% rate peg increase) across the local government area, which would come into effect from 1 July 2020.

    The majority of ratepayers on a minimum rate are those in a unit/apartment or multi-dwelling.

    What are the proposed changes to business rates in the Hurstville and Kogarah Commercial Centres?

    Council has identified the need to set a new minimum business rate for the Major Commercial Centres of Hurstville and Kogarah of $1,100.

    This proposed minimum rate recognises the additional services, such as parking management, street cleaning, improved public domain, festivals and events that Council provides in these commercial centres.

    Currently ratepayers in the former Hurstville Council area on the minimum rate pay $570.88 plus a town improvement levy. In the former Kogarah Council area the minimum rate is $942.24.

    Will this include a change to the minimum rate for both residential and business ratepayers?

    Yes, the minimum rates will be recalculated for both residential and business ratepayers.

    What is a minimum rate?

    These are a specific type of rate, where a minimum amount is levied on each parcel of land, regardless of land value.

    Councils need to apply to IPART for minimum rate increases.

    Who is IPART?

    The Independent Pricing and Regulatory Tribunal (IPART) is the main independent pricing regulator in NSW. IPART sets prices for water, electricity, gas and transport businesses. They set the rate peg for local councils.

    What is a Special Rate Variation (SRV)?

    Under the provisions of the Local Government Act 1993 (NSW), a special variation allows a council to increase its general income above the rate peg. Special variations can be for one or several years, and can be temporary or permanently retained in the rates base.

    What is a rate peg?

    The rate peg is the maximum percentage amount by which a council may increase its general rate income for the year. The rate peg does not apply to stormwater, waste collection, water and sewerage charges. IPART set the rate peg for 2019/20 at 2.7%.

    Councils have no say in how the rate peg is set. The rate peg is set by IPART and is based on the Local Government Cost Index (LGCI).The LGCI measures price changes over the previous year for the goods and labour an average council will use.

    I thought that Council amalgamation meant that money would be saved, so why are rates going up?

    While Council’s income has increased and we have made savings as a result of the 2016 amalgamation, these have not kept pace with the increase in costs in providing services, especially as our population continues to grow. No organisation, no business, no family can continue to operate when it spends more than it earns. Council is no different. Since the amalgamation, Council has provided over $150 million of additional community assets, which has contributed to a 33% increase in the forecasted costs of operating and maintaining assets.

    Why doesn’t Council become more efficient rather than ask for a rate rise?

    Council made cost savings following the amalgamation of Hurstville and Kogarah Councils in May 2016.

    Council has also established a “Financial Sustainability Working Group” to explore options on strengthening Council’s long-term financial sustainability. Information on Council efficiencies to date can be further explored here:

    What will the SRV be spent on?

    Every four years, following extensive consultation with our community, Council adopts its Community Strategic Plan which details the community’s aspirations for the Georges River area for the next 10 years. This Plan highlights many community projects, programs, initiatives and events that require substantial funding to become a reality. The SRV will be spent on these programs, projects and initiatives.

    Information about major projects is available on Council’s website here.


    How much additional income will Council get from the SRV?

    Should IPART approve Council’s preferred option, this would generate an additional $7.5 million per year in rates income.  The rates increase will help to fund the services to meet the needs of the community and ensure that Council is financially sustainable in the long-term.


    What options are available to those who can’t pay a rate increase?

    Council recognises that some ratepayers may experience financial difficulties in paying their rate commitments on time.

    Council has recently updated its policy and the Draft Debt Management and Hardship Policy will be on public exhibition during October 2019. The updated policy improves the options available to ratepayers who may be experiencing financial hardship. For example, options will include the ability to seek an extension or arrange payment instalments.

    Please contact our Customer Service Team on 9330 6400 to discuss your individual circumstances.  


    Has the impact on Pensioners been considered?

    Residents who hold a pensioner concession card are entitled to apply for a rate reduction, which is split into two components: the Mandatory Government Rebate of $250, and the Council’s 2019/20 voluntary rebate of $150, against the annual domestic waste management charge. Council has resolved to review the voluntary rebate annually.

    For more information about applying for a rates concession rebate, please see the Pensioner Concession Rates Rebate Application form and the

    Rate Relief Hardship Application (including eligible pensioner) Statutory Declaration


    How are my rates calculated?

    Council rates that are above the minimum are calculated based on the value of your land, as determined by the NSW Valuer General. The valuation process is something Council cannot influence.

    Updated land values are provided to Council at least every three years. The next revaluation is due to come into effect on 1 July 2020. Any significant fluctuation in your land valuations may have an impact on the amount of rates you pay.

    You can find further information about the NSW Valuer General valuation process and how to request a review at the following website: www.valuergeneral.nsw.gov.au.


    If the value of my land increases does that mean Council's total rate income will also increase?

    No it will not. Council’s rate income in total can only increase by the percentage increase (known as the rate peg or a Special Rate Variation) which is set by IPART.

    Council uses the land value of properties throughout the LGA to determine the level of rates each property owner should pay. In other words, land value determines how Council’s total rate income will be collected from each property owner.


    Is this something other councils are doing?

    For 2019/2020, IPART received 13 applications from NSW councils and approved 11 applications in full and in part for an increase to the council’s rate income.


    What happens if IPART doesn’t approve the application for the SRV?

    If Council is not successful in its application to IPART, Council’s overall expenditure will need to be reviewed.

    This will result in changes to service levels, reduction in the investment in new assets, maintenance and renewal of current infrastructure.


    What happens next?

    Council is undertaking significant community consultation on the proposed rate change. Feedback from the Georges River community will be included in Council’s SRV application to IPART. If approved by IPART, rate changes will come into effect by 1 July 2020.


    Get in touch

    If you want to speak to a Council Officer or have any questions relating to this information, please phone Council on 9330 6400 or email yourrates@georgesriver.nsw.gov.au.

    For more information on IPART, please visit www.ipart.nsw.gov.au