Many Queanbeyan residents are facing a rates hike of almost $800 per year, in a move the local mayor admits is "horrible".
Councillors last night voted to ask the New South Wales government to raise rates by 18 per cent each year for three years, a figure Queanbeyan-Palerang Regional Council (QPRC) mayor Kenrick Winchester accepted was a "significant increase".
"I absolutely feel very sorry for everyone," Councillor Winchester said.
"But all of [council's] costs are going up the same as everyone else's … and we don't want to be going back to the old struggle town days where we weren't moving forward as a council and a community."
Councillor Winchester said under the arrangement, the average ratepayer would face an increase of about $15 per week — approximately $780 extra each year, once the rises take effect across three years.
He blamed the Independent Pricing and Regulatory Tribunal for the increase, due to the body capping NSW local government rates rises in the past.
"Over the last 10 years or so, we've only been able to raise rates by a much smaller amount … less than inflation," Councillor Winchester said.
He insisted the hike was vital as the council's income had not been keeping up with its expenditure, but acknowledged that residents were already hurting due to rising interest rates and hefty utility bills.
"It's very difficult for ratepayers to swallow," he conceded.
"We have heard from lots of people who are saying they won't be able to afford it."
Residents question brand new council building
One Queanbeyan resident and ratepayer told the ABC they were "filthy about the previous financial mismanagement" that had led to the decision.
Another resident in the region questioned why the council had recently built new offices for its employees, rather than using existing infrastructure, if the council was struggling for money.
But Councillor Winchester said the development of the soon-to-be-completed building was a commitment made before his tenure.
"That building was one that council absolutely did need as we had staff working out of 11 or 12 different buildings in Queanbeyan. It was inefficient," Councillor Winchester argued.
"And the council is only taking up two floors of that building. The state government is taking up two more floors, and another floor will be a commercial tenant.
"Our CBD deserves buildings like this."
He added that QPRC would endeavour to cut its expenditure by about $5.5 million each year.
QPRC has not been the only NSW council to go cup-in-hand to its residents, with Bega Valley and Snowy Monaro councils proposing similar increases.
Councillor Winchester promised that vulnerable residents would be able to apply for hardship payment plans or deferrals.
A decision on the proposed rates rise is expected in May, with any changes to come into effect from July.
