PORT Stephens ratepayers are officially facing a proposed three years of rate hikes beyond the statewide cap after councillors unanimously backed an application for the rise.
Councillors voted on Tuesday night to support a 9.5 per cent rise each year for three years, the result of a lengthy period of consultation on options to cover growing costs for the area.
The final figure proposed is a drop from a plan put forward in council documents a month ago that had suggested either a 10.5 per cent rise over three years or a one-off 26 per cent jump.
If the revised plan wins regulatory approval, the suite of rate rises will kick in next financial year.
The rises will also be permanently added to the rate base, meaning they will be incorporated into calculations for any future rises.
The council's general manager, Tim Crosdale, said the decision to proceed with a rate hike was a difficult one.
"Over the year we've been working closely with our council to investigate a range of options aimed at reducing a predicted ten-year $80 million budget shortfall," Mr Crosdale said.
"This has included everything from reducing services, the sale of property assets, and of course, a rate increase.
"Since July, we've been out talking to our community on the options around a rate rise. While we know a rate rise discussion is very difficult, we've had some really objective and valuable feedback from our community.
"We know that half of those who engaged with council on the rate rise were supportive of a rate increase over reduced services. We also know that all our residents want to see council keep within its means. It's also abundantly clear that roads are an important issue for our community right now."
The three-year 31.27 per cent rise includes the Independent Regulatory and Pricing Tribunal (IPART) limit of 4.4 per cent. IPART will decide whether the council's proposal proceeds to residents' rate notices.
"Our community will have another chance to share their thoughts on our application to IPART once council submits its application in early 2023," Mr Crosdale said.
Mayor Ryan Palmer said he understood that not everyone would welcome the news.
"With increasing living costs, we know that many within our community will find it tough to take on more expenses. As part of our decision to apply for a rate increase, we're also committing to include additional affordability measures to help those most vulnerable" Mayor Palmer said.
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