Georges River is one of eight NSW councils that have applied to the Independent Pricing and Regulatory Tribunal (IPART) for a special variation on rates.
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The other councils are Central Coast, City of Canterbury-Bankstown, Armidale Regional, Cootamundra-Gundagai Regional, Federation, Liverpool Plains Shire and Tweed Shire Councils.
"Some of the proposed increases have already caused a strong community reaction. There have been more than 3,850 submissions about the Central Coast Council's application and 175 about Liverpool Plains Shire Council," said IPART Tribunal member Ms Deborah Cope.
IPART has set the rate peg for 2021-22 at two per cent for the maximum amount by which a council can increase its income from rates.
Councils requiring additional revenue can apply to IPART for increases above the rate peg, known as special variations.
They are also able to apply to change the level of the minimum rate that they charge.
Two councils are applying for both minimum rate increases and special variations - the City of Canterbury-Bankstown and Georges River Council.
Ms Cope said councils are required to demonstrate the need for the additional revenue, evidence of community consultation and an assessment of the impact on affected ratepayers.
Georges River is applying for 32.6 per cent cumulative increase over five years, retained permanently in the rate base. They say it will maintain service levels, deliver critical priorities in its Community Strategic Plan and Delivery Program, fund infrastructure maintenance and renewals, and improve its financial sustainability.
Minimum rates are currently $586 in the former Hurstville local government area and $967 in the former Kogarah area.
All amalgamated councils are required by the State Government to 'harmonise" the rating structures of their former local government areas.
Georges River Council proposes minimum rates of $965.80 for residential to take effect from the 2021/22 rating year.
The council also proposes establishing a new Minimum 'Major Commercial Centres of Hurstville and Kogarah' business rate of $1,500 and a new Minimum Business Rate for all other sub-categories of $1,100.
The council will discontinue the former Hurstville Town Improvement Special Rates for Hurstville, Mortdale and Riverwood town centres and create a new business sub-category named Major Shopping Complex.
The council will apply for a Special Variation (SV) of 5.8 per cent to its rates (3.3 per cent Special Rate Variation (SRV) and 2.5 per cent assumed rate peg) followed by 5.8 per cent per year for four years (16.5 per cent SRV and 12.5 per cent assumed rate peg) to replace the cessation of the Hurstville Council SV.
Georges River Council mayor, Kevin Greene said, "In the proposal, we are increasing the rates by 3.3 per cent each year over five years.
"In the first year, this will maintain our income as we have an existing SRV which expires on June 30, 2021.
"This means we will immediately lose $2.3 million income from July 1which will have a significant impact on council service.
"Currently council's overall rate per capita is 30 per cent below the NSW average. With this proposal, we will still be well below that average."
A report submitted to council last week said that if the Special Rate Variation does not proceed, significant service cuts to all council services will be required immediately with a reduction of up to 10 per cent of council's workforce in year one (up to 58 staff) giving savings of $5.8 million.
This would include 23 staff from the council's asset and infrastructure directorate including street cleansing, graffiti removal, sports field and turf management, bushcare, road and footpath renewal and tree inspections.
There would be a reduction of 11 staff from the community and culture directorate including children's services, libraries, community events and customer service; and 15 staff from the environment and planning directorate including parking and compliances rangers and staff from the council's assessment and advisory service.
"Community members can continue to make submissions directly to IPART until March 7 and we will consider these submissions as part of our determination," Ms Cope said.
The IPART website also has details about the assessment criteria for special variation and minimum rate applications, as well as instructions on how to lodge a submission at https://www.ipart.nsw.gov.au/Home
IPART will determine all applications by mid-May.
