Georges River Council will be asked to scrap a plan to abolish its Voluntary Pensioner Rates Rebate.
For the 2019/20 current financial year pensioners are entitled to the $250 mandatory rebate and the voluntary $150 rebate.
In the proposed council budget for 2020/21 the voluntary rebate is proposed to be removed.
The budget is yet to be endorsed by Council.
An earlier report that the rebate would not be scrapped was incorrect.
Prior to the COVID-19 pandemic, Council reported a forecast operating deficit of $13 million for 2020/21.
The council has reduced its shortfall to a projected deficit of $3.2 million by reducing expenditure across the organisation and council services such as the removal of some internal staff benefits, the Councillor Discretionary Ward fund, and the voluntary Pensioner Rebate. There is also no increase budgeted for the mandated annual salary Award increase.
But in a Notice of Motion to be submitted at next week's council meeting, Councillor Vince Badalait will call for the $150 supplementary Pensioner Rebate given by Georges River Council to remain.
"Many pensioners are doing it hard financially and the rebate on their Rates given by Georges River Council has been helpful to them," Councillor Badalati says in his Notice of Motion.
"They should not be made to pay for Councils' weak financial position."
In a council report provided as background to the Notice of Motion, the council did not include any voluntary pensioner rebate in the publicly exhibited 2020/2021 draft Budget.
"No public submissions were received by Council requesting inclusion of an additional voluntary pensioner rebate in response to the exhibition of the draft Budget," the council's report states.
"Eligible owner occupier pensioners already receive a $250 pensioner rebate that is mandatory under the Local Government Act.
"Of this mandatory rebate, Council is required to pay 55 per cent (or $1 million)."
A survey of neighbouring councils in relation to the provision of a voluntary pensioner rebate highlights a differing approach:
Bayside Council - No additional pensioner rebate. Adopted 2020/21 forecast could not be obtained. 2020/21 draft Budget operating deficit of $1.4 million
Cumberland Council - No additional pensioner rebate. Adopted 2020/21 forecast operating surplus of $2.5 million
Fairfield City Council - No additional pensioner rebate. Adopted 2020/21 forecast operating surplus of $600,000
Blacktown City Council - Additional voluntary pensioner rebate of $200 per annum providing that the ratepayer has paid rates to Blacktown City Council for more than 5 years. Adopted 2020/21 forecast operating deficit of $24.4 million
Liverpool Council - Additional voluntary pensioner rebate of $100 per annum for ratepayers who were pensioners prior to 1 July 2005. Adopted 2020/21 forecast operating surplus of $11.1 million
Canterbury-Bankstown Council - Additional voluntary pensioner rebate of $40 per annum. Adopted 2020/21 forecast operating deficit of $22.1 million.
Sutherland Shire Council - Additional voluntary pensioner rebate of $105 per annum, providing that the eligible pensioner has been a ratepayer for at least 3 consecutive years. Adopted 2020/21 forecast operating deficit of $6.2 million.
"Additional non-budgeted funds of $1.2 million will be required to fund a voluntary pensioner rebate of $150," the council's report states.
"The inclusion of the non-budgeted voluntary pensioner rebate would result in Council's proposed 2020/21 operating deficit increasing to $4.4 million.
"This operating deficit does not currently take into consideration the pending adverse financial impacts of COVID-19.
"Inclusion of the voluntary pensioner rebate will necessitate amendment to Council's Long Term Financial Plan to reflect the impact on Council's financial position over the next 10 years and the further decline in Council's negative operating ratio.
"While the $1.2 million voluntary pensioner rebate was funded in 2019/20 from the Domestic Waste Management Reserve, this practice is not recommended again due to the projects already designated by Council to be funded from the Reserve next year."
