Community speak out against Goulburn Mulwaree rate rise

"You can't get blood out of a stone," the Goulburn businesswoman told The Post.

"What would the councillors rather do, give up a project or have a town full of empty shops? It's untenable. People can't keep getting pushed and pushed."

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Ms Hurley made the comment following Goulburn Mulwaree Council's meeting on Tuesday, November 21. Councillors decided to apply to IPART for a 51.2pc rate rise split over three years, starting from 2024/25. The option emerged after public reaction to the hike, previously spread across one and two years.

"I think it makes little difference, especially for those on fixed incomes. Where are they supposed to get the money from? A 51pc increase is just absurd," she said.

Mrs Hurley was one of six speakers during open forum at Tuesday's meeting. She criticised the council's community consultation on the rate proposal, saying many didn't know about the sessions which were scheduled during work hours.

Ms Hurley, her husband and children moved from Lithgow two years ago and bought a home. Now she said her rates were "among the highest in the state."

If the increase proceeded, she would be paying almost $3000 annually, a $906 increase.

"My own household is already financially stretched with our mortgage repayment increased by $725 per month thanks to the blunt economic instrument used by the Reserve Bank to control inflation...," she said.

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Like others, she called on the council to ensure rate revenue covered running costs, rather than hitting ratepayers.

Council CEO Aaron Johansson said the council had already identified $1.4 million in savings over the next three years and would look for more. Nevertheless, more revenue was needed to "adequately fund current services and infrastructure needs."

In a report, he stated that IPART's revised rate peg methodology would not solve the council's sustainability challenges.

But accountant Nina Dillon argued that far from the $10.7m annual deficits over 10 years that the council forecast, the long-term financial plan forecast an increase in cash investments and receivables to $62.067m by 2034.

She said while some of $42.46m of the cash, investment and receivables in the general fund as at June 30, 2023 were restricted, a portion could be moved into reserves for projects.

Ms Dillon maintained that the council was "financially viable" in the long-term without a rate variation.

"...Our council has been operating reasonably efficiently and successfully for many years and is definitely not at risk of going bankrupt anytime soon...There is almost $130m in the bank, with much of it invested at five per cent plus, returning a tidy amount of interest," she said.

But Mr Johansson stood by the accuracy of consultant Morrison Low's financial figures. He told the meeting he'd spent more than an hour going through the figures with Ms Dillon and he was "surprised" by some of her statements.

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Mayor Peter Walker also said investment funds were tied up for projects.

During open forum, Parkesbourne grazier Sue Arcus said the rate rise would only add to farm debt in a climate of reduced livestock prices. She cited a 2023 report that a farmer died by suicide every 10 days in Australia due to drought, debt and other stresses.

"Farmers are proud and stubborn people and are least likely to seek help when they need it...The statistics say they are selling up and getting out," she said.

She questioned whether the council wanted to protect the country's food security.

Mrs Arcus rejected Morrison Low's finding that overall, the rural sector "had capacity to pay increased rates."

Goulburn business owner, Kim Gann, said she was "angry and in disbelief" when she found out about the rate proposal. If it went ahead, her and husband Scott's Bi-Rite Electrical business would pay more than $4000 extra annually.

She said they had found efficiencies where they could but insurance had increased $800 annually, fuel by one-third and rates by 5.5pc last year.

Mrs Gann told the meeting she'd spoken to other CBD building owners who said their rates had risen between 8.1pc and 9.15pc in 2022.

"(This) is why we are seeing and will see more empty buildings in the CBD...I ask, when will these increases stop? It makes me wonder whether owning a commercial property is worth it."

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Leanne Armstrong, speaking on behalf of husband, Steve, said 13 successive interest rate rises were hitting people hard and Australia was experiencing a financial crisis.

Mrs Armstrong told councillors that it was within their power to ease the pressure and called on them to delay a decision until a statewide review of council funding was completed.

She said she worked in a real estate agency and maintained that every week people were experiencing rental stress and applying for state housing.

Barry McDonald said he disagreed with the "excessive rate increase" and argued it assumed the council would continue its current operations "with few real improvements or changes".

He suggested selling off more surplus land, charging for some services, including Tesla for its charging stations, and to cease distribution of heritage grants to CBD landlords.

"I don't support the SRV as presented by Council and I believe the base case rate peg, as presented, is understated," Mr McDonald said.

Councillors voted six to three to apply to IPART for the 51.2pc rate rise, to be split over three years.

On Tuesday, they also adopted revised hardship and pensioner rebate policies. The former allows people experiencing financial hardship to negotiate repayment of outstanding rates over three years, without interest accrual.

Pensioner rebates will increase by $75 in the first year of the rate rise, escalating to $100 in the second and subsequent years.

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