2024-2025 Special Rate Variation - Have your say!

Published on 18 July 2024

Federation Council plans to apply to the Independent Pricing and Regulatory Tribunal (IPART) for a permanent Special Rate Variation (SRV) for the 2025-26 year. A special rate variation allows Council to increase total rates by more than the annual IPART rate cap.

A fact sheet and survey has been sent via Aus Post to 6200 mail boxes in the Federation Local Government Area. The fact sheet and survey can also be viewed and completed online here. 

Key messages contained within the fact sheet include:

• Federation Council plans to apply to the Independent Pricing and Regulatory Tribunal (IPART) for a permanent Special Rate Variation (SRV) for the 2025-26 year.
• The purpose of the SRV is to improve financial sustainability, address infrastructure maintenance shortfalls and maintain other services wherever possible.
• The cumulative impact of the SRV is 69.94% over two years, including the assumed rate peg. This includes converting the current temporary SRV of 39.2% cumulative (which otherwise expires after the 2024-25 financial year) into a permanent one.
• The need for an SRV responds to a structural imbalance in the operating budget that earlier work has demonstrated beyond reasonable doubt to have existed for decades. Quite simply, Council’s required operating expenditure has well-exceeded its revenue over many years. 
• If we don’t get the SRV approved then to continue our journey towards sustainability, Council would have to cut capital expenditure by approximately $6 million, or 24% of cash operating expenditure per year. This would involve Council deferring asset renewal and maintenance of roads and other infrastructure assets. The longer asset maintenance and renewal is delayed, the greater the ultimate costs are to bring them up to a satisfactory standard. 

Further Engagement Opportunities 
There are a number of engagement opportunities this month, and residents are encouraged to attend to find out more information on the SRV project.

Council will conduct four listening posts at the following sites and encourages residents to attend:

• Listening Post: Monday, 22nd of July 2024 – Corowa Memorial Arcade: 11am – 1pm. 
• Listening Post: Tuesday, 23rd of July 2024 – Mulwala Bakery: 11am – 1pm. 
• Listening Post: Wednesday, 24th of July 2024 – Urana Council Chambers: 11am – 1pm. 
• Listening Post: Thursday, 25th of July 2024 - Howlong Bakery: 11am – 1pm. 

Council will conduct six in person community meetings, as well as one online community meeting at the following sites and encourages residents to attend:

• Community Meeting: Monday, 29th of July 2024 – Oaklands RSL, Bowling and Community Club: 9am – 11am. 
• Community Meeting: Monday, 29th of July 2024 – Morundah Palladium Theatre: 12.30pm – 2.30pm.
• Community Meeting: Monday, 29th of July 2024 – Urana Bowling Club: 6pm – 8pm.
• Community Meeting: Tuesday, 30th of July 2024 – Club Mulwala: 10am – 12 noon. 
• Community Meeting: Tuesday, 30th of July 2024 – Corowa Golf Club: 6pm – 8pm. 
• Community Meeting: Wednesday, 31st of July 2024 – Howlong Football Club ‘Mighty Murray Room’: 10am – 12 noon. 
• Community Meeting ‘Online’: Thursday, 1st of August 2024 – Council Website for meeting link: 6pm – 8pm.