Bega Valley and Snowy Monaro councils have both taken steps towards implementing a proposed large rate increase to address what they are calling rising operating costs.
This week, Bega Valley council voted to put plans proposing a 35 per cent increase in rates on public exhibition.
Bega Valley Mayor, Russell Fitzpatrick, said Council is projecting a $6.6 million deficit for the 2022-23 Financial Year.
"Unless our financial position significantly improves over the longer term, services will continue to be reduced."
Mr Fitzpatrick said the shire was one of the largest in coastal NSW by size, with more assets per capita than most other LGAs.
"With a small population, the revenue we raise through rates and charges is not enough to cover the costs of our operations."
However, he stressed any potential rate rise would be applied to the base rate.
"It's important to understand this increase, if approved, would be to the base rate only, not the total rates notice which for some residents also includes water, sewer and waste charges on top of the general rate component," he said.
Locals critical of proposal
The proposal has already prompted widespread debate within the Bega Valley community.
Bega Valley resident, Virginia Alcock said the council should review its own expenses before going to rate payers for more money.
"I wasn't very happy about it," she said.
"A lot of people are still recovering from the fallouts from the fires and COVID, and 35 per cent on top of what they're already trying to deal with, it's a hell of a hike."
Another resident, Adrian Veer, agreed the size of the increase was concerning.
"I would have to look at the details, but that seems very excessive to me," he said.
"I imagine there would be a lot of internal cleaning up that can be done to save money, rather than go for such an increase."
Snowy Monaro floats rate rise
The Snowy Monaro Council also voted yesterday to release plans to increase its rates, with one of the four options proposing a rise of up to nine per cent per year over the coming decade.
In a statement, the Snowy Monaro council said:
"Both the modest rate increase and no increase options would mean Council has no choice but to cut and reduce services, community facilities and staff.
"The option which includes a higher increase to rates over the course of the next ten years, would mean Council is able to continue its path to a balanced budget."
Chair of the Jindabyne Chamber of Commerce Olivier Kapentanakos said, while it was known that a rate increase was being considered, the size of the increase was shocking.
"They are basically doubling the rates", he said.
Mr Kapentanakos said a detailed financial analysis was needed, as was better communication about council's plans for rates.
"The community understand the cost-of-living increases, we see it every day, and while the community may not like, that's unfortunately the reality", he said.
"But as a council, they have a responsibility to communicate far more effectively than they're doing at the moment."
Meanwhile, Eurobodalla Council said it will not be applying for a special rate variation and is proposing to increase the General Rate and the Environmental Levy by 1.7 per cent in 2022/23, in accordance with Rate Pegging approved by the Independent Pricing and Regulatory Tribunal (IPART).
Eurobodalla Council's Long-Term Financial Plan 2022-32 is currently out for community feedback.
