Updated | Council signs off on 2.5 per cent rate rise for Sutherland Shire residents

Sutherland Shire Council rates will rise by 2.5 per cent in 2022-23.

The Independent Pricing and Regulatory Tribunal (IPART) last week approved the council's application for the increase after initially proposing to limit the rise to 0.7 per cent.

IPART also readjusted rates for another 85 councils who were left reeling by modest initially proposed rises.

The tribunal said earlier figures were calculated in "a low inflation environment" and, since then, "high inflation and global uncertainty has increased councils' costs".

Sutherland Shire Council accepted the 2.5 per cent increase approval without debate at its meeting on Monday night.

Speaking before the meeting, mayor Carmelo Pesce said he was confident residents would accept the increase.

"We consulted the community last year [in the draft Operating Plan] on an expected rate rise of about 2.5 per cent for 2022-23 and there was no angst about it," he said.

"We are not increasing rates beyond the level we advised, just aligning them to where they need to be to maintain the infrastructure and services which residents expect."

Cr Pesce said the tribunal's first proposal of a 0.7 per cent rise was "ludicrous", and he could not understand how such a figure could have been reached.

"Had we been forced to work to that limit, we wouldn't be able to build the infrastructure we planned or services would need to be cut."

IPART said applications by councils to modify the original proposed increases required councils to show they had budgeted for higher income than that provided by the rate peg and that they need the additional money to deliver on the projects they have already planned and included in their budgets.

"Some councils have demonstrated that without additional funds they will not be able to deliver the projects they have already consulted on and included in their budgets," IPART said.

The tribunal said it is reviewing the rate peg methodology to deal with volatility in economic conditions.

The review will also look at the timing of the calculations in a fast-changing economic climate.

"The rate peg was lower than many councils expected. The additional special variation process gave councils an opportunity to increase this figure.

"We were careful to balance the need of councils to maintain the services and investment they had already committed to against the need to keep rates affordable for the community."

IPART said applications were assessed against guidelines provided by the Office of Local Government.

The guidelines require councils to show that they had budgeted for higher income than that provided by the rate peg and that they need the additional money to deliver on the projects they have already planned and included in their budgets.

IPART said it is reviewing the rate peg methodology to deal with volatility in economic conditions.

The review will also look at the timing of the calculations in a fast-changing economic climate.

Earlier

Mayor Carmelo Pesce is confident Sutherland Shire residents will accept a 2.5 per cent increase in council rates, even though IPART originally proposed a rise of just 0.7 per cent.

"We consulted the community last year [in the draft Operating Plan] on an expected rate rise of about 2.5 per cent for 2022-23 and there was no angst about it," he said.

"We are not increasing rates beyond the level we advised, just aligning them to where they need to be to maintain the infrastructure and services which residents expect."

The council is expected at tonight's meeting to accept the 2.5 per cent increase, announced by the Independent Pricing and Regulatory Tribunal (IPART) last week.

The tribunal said its initial proposal to limit the rise to just 0.7 per cent, was calculated in "a low inflation environment" and, since then, "high inflation and global uncertainty has increased councils' costs".

IPART also readjusted rates for another 85 councils who were left reeling by the modest initial proposed rises.

Cr Pesce said the tribunal's first proposal for the shire was "ludicrous", and he could not understand how such a figure could have been reached.

"Had we been forced to work to that limit, we wouldn't be able to build the infrastructure we planned or services would need to be cut."

IPART said applications by councils to modify the original proposed increases required councils to show they had budgeted for higher income than that provided by the rate peg and that they need the additional money to deliver on the projects they have already planned and included in their budgets.

The tribunal said it is reviewing the rate peg methodology to deal with volatility in economic conditions.