Goulburn Mulwaree Council hits out at emergency services levy hike

Goulburn Mulwaree Council will have to pay an extra $295,102 in 2023/24 if the state government doesn't extend a $200,000 subsidy given in previous years.

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The new Labor government has said the subsidy, introduced by the Coalition, would not be continued.

It means Goulburn Mulwaree will pay $840,404 for the levy in 2023/24, or 9.17 per cent of rate revenue.

Cr Walker said the council was very disappointed that the government was passing on the full amount.

"(The increase) has not been allocated for in our budget (and it) will directly affect our works program moving forward," he said.

"The council will be writing to the state government and voicing our very strong opposition to this decision. It is difficult enough coping with the increased cost of products, and other factors which directly affect our functionality."

Like other councils throughout NSW, he said the hike would chew into the Independent Pricing and Regulatory Tribunal's 3.7pc rate peg for 2023/24, send the organisation "backwards" and lead to service cuts.

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While insurance premiums cover most of the ESL, the state pays 14.7pc and councils, 11.7pc to fund emergency services.

In his mayoral minute to Tuesday night's meeting, Cr Walker said the state's 128 councils would pay $219m next financial year, a rise of $77m or 53pc.

It came amid a 73pc and 18.5pc increases in the SES and RFS budgets respectively.

Corporate services director, Brendan Hollands said the extra $295,102 would absorb 31pc of next year's 3.7pc rate peg.

Further, since 2018/19, the levy had almost doubled. He also cited annual 10 to 15pc increases in insurance premiums and IT cost rises "well above inflation" as further pressures.

"About four or five factors pretty much wipe out the rate peg for next year," he said.

Cr Walker said most councils would have little option than to cut services if the decision was not reversed.

Other councillors were similarly vocal.

Cr Steve Ruddell hoped other councils would also lobby the government. Cr Andy Wood described the move as "short sighted."

"It's no secret how close to the edge a lot of councils are running," he said.

"We are going pretty well but it's just another move by the state government to make it more difficult for us to deliver services. This is about keeping people safe..."

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Cr Jason Shepherd, the Goulburn Labor branch president, supported Cr Walker's motion. He told the meeting it was important to send a "strong message that councils needed to be looked after."

Mr Hollands said if the decision stood, finance staff would have to consider cutting or deferring works and services to make up the shortfall.

As such, a quarterly budget review to be presented to councillors in September, was "extremely important."

"(The possibility of a special rate variation) is a discussion we'll need to have in the next 12 months. This (levy) increase has necessitated it and brought it forward," he said.

Cr Bob Kirk pointed out that next year's levy hike was effectively the council's total footpath budget.

The council will write to Premier Chris Minns, treasurer, emergency services and local government ministers as well as Goulburn MP Wendy Tuckerman and Opposition leader, Mark Speakman opposing the levy increase.

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It will also highlight its impact on the 3.7pc rate peg, services and projects, call for the subsidy's reinstatement and the levy's uncoupling from the rate cap.

In addition, Goulburn Mulwaree will write to IPART, stating that the levy is "manifestly disproportionate" to the rate peg and support Local Government NSW' continued advocacy on the issue.

Councillors unanimously supported the move.

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