Special Rate Variation (SRV)
Council is seeking community feedback about funding the renewal of community infrastructure through a Special Rate Variation (SRV). An SRV will enable Council to continue to maintain its existing facilities and infrastructure.
An SRV of 1.1% has been included in Council’s property rates for the last 6 years which Council used to undertake a $6 million upgrade and improvement program. Council is proposing to continue the current 1.1% SRV for 4 more years to part fund facility improvements and renewal works of $5.1 million.
If Council endorses a continuation of the existing SRV, rates will not increase by another 1.1%, only by the Ministers allowable limit (rate peg), which is 2.7% for 2019/20, approximately $41 per year (0.79 cents per week) for residential rates and $188 ($3.62 per week) for business rates.
If Council does not proceed with the SRV, the 1.1% will be deducted from the 2.7% increase, resulting in a 1.6% rate increase for 2019/20 property rates. However, this will impact Council’s ability to carry out the proposed facility improvements and renewal works program.
How can you provide your feedback?
A telephone survey will be carried out by a third-party supplier between 14 - 19 January 2019 to obtain feedback on continuing the 1.1% SRV for the next 4 years. Ratepayers can also provide feedback via email or by phoning 4654 7777.
The consultation period will run until 19 January 2019.
Frequently Asked Questions
A Special Rate Variation (SRV) allows a Council to increase its general income above the rate peg, which is set each year by IPART.
A rate peg is the maximum Councils can increase their rates by without applying for a Special Rate Variation. This rate is set by the NSW Government through IPART. The rate peg for 2019-20 is 2.7%.
IPART stands for the Independent Pricing and Regulatory Tribunal of NSW. IPART sets water, electricity, gas and transport prices as well as the rate pegging limit for NSW councils.
Councils were required to notify IPART of an intention to apply for an SRV by the 30 November 2018. Camden Council endorsed notifying IPART of its intention to apply for an SRV at its Ordinary Council meeting 27 November 2018. Council will make a final decision on making an application to IPART for a continuation of the current SRV at its Ordinary Council Meeting 12 February 2019. This will be after the community consultation is completed.
Council is proposing to continue the current 1.1% Special Rate Variation (SRV) for 4 more years to continue its Community Infrastructure Renewal Program.
Camden Council has community and recreation facilities and infrastructure requiring upgrading and improvement works. Funding for these projects is above Council’s existing forecast budget for the next 4 years. Council is committed to ensuring community and recreation facilities and infrastructure are well maintained and able to be enjoyed by the community.
Yes. The SRV of 1.1% has been included in property rates for last 6 years. The 1.1% is above the rate peg determined by IPART each financial year. The current SRV was approved by IPART for 6 years, at the end of that period (30 June 2019) Council must re-apply or allow the SRV to expire.
Council will be required to reduce rates by 1.1%. Noting that the rate peg set by IPART for all Council’s for 2019/20 is 2.7%. This will therefore result in a net increase to rates of 1.6% (2.7% less 1.1%) for 2019/20.
This will result in an increase of approximately $41 per year (0.79 cent per week) for residential rates and $188 ($3.62 per week) for business rates. This increase includes the 2.7% rate peg increase already determined by Independent Pricing and Regulatory Tribunal (IPART).
If Council were to let the current 1.1% SRV expire, residential rates would increase by approximately $26 (0.50 cents per week) and $109 ($2.10 per week) for businesses in 2019/20. This increase includes the 2.7% rate peg increase already determined by Independent Pricing and Regulatory Tribunal (IPART).
The table below is an extract from the Council report on 27 November 2018 showing the impact on rates. A full copy the Council report can be found here.
The SRV is proposed for 4 more years, does that mean that my rates will increase by an extra 1.1% each year?
No. The 1.1% is already included in property rates and has been for the last 6 years, Council’s SRV is a one-off increase of 1.1% which happened in 2012/13. This is a continuation of the 1.1% SRV, the extra being paid remains at 1.1% each year for 4 more years. For example, if the 1.1% was equal to $20 you would pay an extra $20 for 4 more years.
Residents and businesses will see an increase in their rates when the first rates instalment is distributed for 2019/20. The first instalment will be due on 30 August 2019.
The Special Rate Variation will generate an additional $2.9 million over the 4 years. To complete the outlined works program, Council will need to borrow an additional $2.2 million.
The income generated from the SRV and loan funds will be spent on the following projects:
Council will consider all community feedback as part of a report to Council at its Ordinary Council meeting 12 February 2019. This report will provide Council with information about the community feedback and assist council in determining if it should proceed with its application to IPART for a continuation of the SRV, and Community Infrastructure Renewal Program.
If the SRV does not continue Council will find it difficult to fund all the proposed works program which could impact Council’s ability to continue to provide well maintained infrastructure within the Camden Local Government Area.
Council has appointed Micromex to undertake a community survey regarding the SRV between 14 and 19 January 2019. If you receive a phone call, we would appreciate your time and honest feedback regarding the SRV.
Written feedback is welcome and can be emailed to firstname.lastname@example.org or posted:
PO Box 183
CAMDEN NSW 2570