A Hunter council is seeking to lift its rates by more than one-third to combat spiralling debt, but says the increase will cost residents only an extra $6 a week.
Upper Hunter Shire Council (UHSC) has taken the first step towards applying for a special rate variation by opening community consultations on the proposal.
The council will operate with a deficit until 2032 and its debt ballooned to almost three times its annual ratepayer base of $11 million.
UHSC is considering two options; a cumulative rise of 10 per cent over three years, or a rise of 7.5 per cent over four years - both of which would start in the 2025/2026 financial year.
Both options would see rates increased permanently by more than 33 per cent. Council says that by the end of the final year, residents would pay about $322 extra a year, or roughly $6.20 a week.
The special rate variation would see the average resident pay $1300 annually. The average business rate would be about $1600 and an average farmland fee of $5550.
UHSC mayor Maurice Collison said the consultation process was an opportunity for residents to have their say on how the council could best secure its future.
"We understand the importance of maintaining the high quality of services that our community relies on," he said.
After the community consultation, the council will have to apply to the Independent Pricing and Regulatory Tribunal (IPART), who will be the final arbiter for the special rate variation.
Courts dismissed appeal from sacked councillor
The courts have dismiss a challenge by former Upper Hunter Shire councillor, who was sacked after missing three consecutive meetings.
Elizabeth Flaherty missed three council meetings in February, March and April without a leave of absence, triggering state government legislation that states the position must be vacated.
Ms Flaherty offered an apology before each meeting, which were missed due to illness and work, and called the decision "unreasonable".
The former councillors challenged the decision via the NSW Civil and Administrative Tribunal, who dismissed the appeal.
Rather than paying solicitors, UHSC general manager Greg McDonald represented the council in the proceedings.
Mayor Maurice Collison said the court's decision confirmed the council's actions were appropriate.
"We are relieved that this matter has been resolved without incurring costs to ratepayers and can now continue to concentrate on delivering essential services and projects for the Upper Hunter Shire," Cr Collison said.
Council has already voted to write to the Local Government Minister Ron Hoenig, requesting to dispense with the need for a by-election to fill the councillor vacancy, due to the significant costs involved in holding an election.
*Editor's note: This story was amended on June 11, 2024. The first sentence stated the increase would cost residents only an extra $6 a year. It was amended to say $6 a week.
