Council secures financial future

Date Posted: 4 June 2012

The Independent Pricing and Regulatory Tribunal (IPART) has announced its determination of Lake Macquarie City Council’s rate variation application.  IPART’s determination enables Council to raise the average residential rates by an average of 7.7% per year over 7 years, and the average business rate 9.9% per year over 7 years.

General Manager, Brian Bell, said Council is pleased with IPART's determination, which will allow Council to achieve financial sustainability for the foreseeable future.

“This is a positive result for the City of Lake Macquarie.  We are pleased that IPART has recognised the need to maintain the services Council delivers to our community,” Mr Bell said.

“IPART acknowledged that Council conducted an extensive consultation process demonstrating clear community support for the rate increase they have granted.

“We are pleased that IPART has also acknowledged that Council is efficient and has a culture of continuous improvement.”

The rate increase will allow Council to continue operating at current levels, with the increase in income allowing for improvements to the city’s assets and infrastructure.

This increase will mean an average increase of $63.61 per year or $1.22 per week for residential rates (based on residential land value of $175,000), and an average annual increase of $312 per year or $6.13 per week for businesses (based upon a land value of $400,000).

Council will be able to begin addressing its maintenance and infrastructure backlog, and roads and citywide maintenance will receive additional funding.

Indicative annual increases in average residential and business rates for the period 2012/13 to 2018/19 are contained in the table provided.

Year Residential
(Annual % increase)		 Business
(Annual % increase)		 Residential
(Annual $ rate)		 Business
(Annual $ rate)
2011/12 949 3,284
2012/13 9.75 14.00 1,042 3,743
2013/14 9.50 14.00 1,141 4,267
2014/15* 6.00 7.50 1,209 4,588
2015/16 5.50 6.00 1,276 4,863
2016/17 5.25 5.25 1,343 5,118
2017/18 4.75 4.75 1,407 5,361
2018/19 4.75 4.75 1,473 5,616

* The increase in 2014/15 has been adjusted for the impact of the expiring special variation for the Sustainability Levy which will expire in June 2014.