The Yass Valley Council has deferred a vote on a rate increase of between 40 and 58 per cent after holding an extraordinary meeting on Wednesday evening.<\/p>\n
Councillors met to discuss three proposals: raising rates by 40 per cent for one year; by 56 per cent cumulatively over two years; or by around 58 per cent over three years.<\/p>\n
The proposal would see the average resident slugged an extra $489, if the 40 per cent increase was chosen.<\/p>\n
After hours of debate, the councillors agreed to defer the decision until March.<\/p>\n
Rate increase needed to maintain services, council says<\/p>\n
The council reported a consolidated operating deficit of $4.5 million in 2023-24 and an unrestricted cash balance of just $55,000.\u00a0<\/p>\n
These deficits are expected to peak in 2027-28 with an operating deficit of $6 million.<\/p>\n
In documents released ahead of the extraordinary meeting, the council said the special rate variation would “enable council to deliver current services and maintain assets to the community, while ensuring financial sustainability in the longer-term”.\u00a0<\/p>\n
“It will also enable council to fund sufficient renewals to improve its infrastructure backlog over time,” it said.<\/p>\n
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Yass Valley Council chief executive Gayleen Burley says they are already working to improve the budget. (ABC News: Lily Nothling)<\/p>\n
Chief executive Gayleen Burley said the council had already found millions of dollars in savings.<\/p>\n
“We have already stopped the Crago Mill stage two \u2014 now that saves us $1.5 million a year,” Ms Burley said.<\/p>\n
Stage one of the development includes a new council administration building and a new library, and is scheduled to be completed late this year.<\/p>\n
Stage two would have involved refurbishing the historic Crago Mill and the construction of a building for commercial purposes.<\/p>\n
“We’re also targeting $2.8 million worth of savings over the four years and doing that via a number of methods,” Ms Burley said.<\/p>\n
But the council will not be able to deliver on services or maintain infrastructure without one of the rate rises proposed, the documents said.<\/p>\n
“[The rate rise] means an extra $5.2 million for the Yass Valley Council,” Ms Burley said.<\/p>\n
“So that means real tangible improvements to our roads, to our buildings, to our stormwater infrastructure.”<\/p>\n
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Ahead of the meeting, Yass Valley Business Chamber president Jack Walker urged council to delay its decision until 2026. (ABC News: Lily Nothling)<\/p>\n
Ahead of the meeting, Yass Valley Business Chamber president Jack Walker said council should wait until the new year to discuss a rate increase, after the community had got through the Christmas period.<\/p>\n
“We’ve advocated for more to be done first,” Mr Walker said.<\/p>\n
“We have advocated for structural reforms, improved efficiencies in terms of the management of accounts and delivery of council services.<\/p>\n
“We feel that more time is needed. We think if the new executive and the new CEO are going to demonstrate that they’re genuinely listening to the business community and the wider community, that they should actually take a longer-term view on special rate variations and they should not rush the decision.”<\/p>\n
‘It’s already tough’<\/p>\n
Daniel Neuhaus, who owns the business Trader and Co, said things were already “tough” for Yass residents without the special rate variation.<\/p>\n
“Hospitality’s pretty hard, we don’t have huge profit margins and so yeah, it’s going to have quite an impact on our profitability, and ability to actually make some money and pay ourselves,” he said.<\/p>\n
“On one hand, I do get it, the council obviously needs to be able to be self-sufficient and to fund infrastructure and roads and all that kind of stuff \u2026 it definitely doesn’t make it any easier as a business or a household.<\/p>\n
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Daniel Neuhaus says he will have to raise prices if a rate increase impacts his business. (ABC News: Lily Nothling)<\/p>\n
“Realistically, what it’s going to mean is we’re just going to have to keep putting our prices up, which then flows onto our customer base, the general rising cost of living.”<\/p>\n
Yass resident Tabitha May was critical of the council’s handling of finances.<\/p>\n
“I’m on maternity leave, and I am really worried about how it’s going to impact,” she said.<\/p>\n
“Our cost of living is already quite high, so I’m worried about how it’s going to impact us directly. We’ll have to cut back on other areas to make sure we can still pay the rates.”<\/p>\n
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Tabitha May says she is concerned about the cost to her household from a rate increase. (ABC News: David Sciasci)<\/p>\n
Ms May questioned the decision to build a new council building, despite the bleak financial outlook.<\/p>\n
“Maybe we didn’t need the council building that we’re not going to benefit from, I suppose. There’s other areas that need fixing,” she said.<\/p>\n
“I know there’s quite a few people that are in town that are struggling with their water. Maybe that’s somewhere where they could have invested their money.”<\/p>\n
Water quality has long been an issue for Yass residents.<\/p>\n