'We mean business': Group goes to government over proposed rate rise

Mr Lamarra and retired businesswoman have written to Premier Chris Minns, NSW local government minister, Ron Hoenig and others asking that a proposed 51.2 per cent rate rise over three years be repealed. They've requested that it be replaced with an an annual CPI increase.

The correspondence has been endorsed by local business owners Paul O'Rourke, Peter Mylonas and accountant, Nina Dillon as well as retired IT director, Dr Christopher O'Mahony, company director, Ken Halliday and Australian CPA/Swiss Finance professional, Richard Ernst.

Mr Lamarra said it was the council's role to maintain a strong economy but the planned rate increase would do the opposite.

"We are citizens who are concerned about what will happen in future and we'll do what we can to ensure the council listens to ratepayers. There are a lot of flaws in (their arguments)."

The council says the rise is needed to avoid successive $10m deficits in the general fund and to keep pace with rising costs, state government cost shifting and asset depreciation. An application requesting the increase will be sent to IPART, following councillors' six votes to three endorsement at the November 21 meeting. IPART will then conduct its own community consultation before making a decision.

Draft general purpose financial statements to be discussed at an extraordinary council meeting on Thursday, December 14 show a net operating result of $17, 375,000 for the year ending June 30, 2023. The figure includes grants and contributions. When grants and contributions are excluded, the net operating result is $3.78m. Depreciation accounts for $28.9m.

The council's operating performance ratio, measuring its ability to contain expenditure within revenue, declined from 5.8 per cent and 6.16pc in 2021 and 2022 respectively, to 1.17pc in 2023, the statements showed. This was attributed to a "significant decrease in grants and significant increase in depreciation with new assets and revaluation of buildings."

But Ms Whitehead says she agrees with Ms Dillon's assessment that the council is financially viable.

"I trust the way she's reviewed the figures. In addition, the former NSW auditor general, Tony Harris, has stated that the template used by councils to assess their long-term financial plans is not correct," she said.

Ms Whitehead and her husband moved to Goulburn from Queensland a year ago. Her parents retired to the district in the 1980s and she said she knew the area well.

In the letter, she and Mr Lamarra have criticised the community consultation process, saying some people didn't receive notifying letters until after sessions were held. Further, these were held in business hours.

"It was short notice and it was presented very much as a done deal. There was no discussion about other strategies," Ms Whitehead said.

The council has rejected this, saying the rate increase is a part of a suite of measures, including cost efficiencies.

The pair pointed out that 92 per cent of public submissions opposed the rate rise and argued councillors were not representing their constituents.

Ms Whitehead said IPART only required councils to consult with their communities, not gain approval, but the implications would be widespread if a higher rate was introduced.

"People are already struggling under the financial burden of higher costs including food, fuel, mortgages food, utilities and insurances," the letter states.

"...The Australian Bureau of Statistics in November 2023 indicated that our real household income suffered its largest ever decline last financial year, plunging to 5.1 per cent. Nevertheless the council is intent on pushing through with this unnecessary special rate variation , imposing additional costs on the community, despite vigorous opposition."

Ms Whitehead said while the council had analysed the implications of not imposing a rate rise, it had not examined the economic impacts if it proceeded.

"We won't have any ratepayers left...I don't know where people are expected to find the extra money," she said.

She argued that businesses could be forced to reduce staff or close, leading to a loss of disposable income.

Council consultants concluded that while some areas of Goulburn Mulwaree had lesser ability to absorb the rate rise, overall, there was capacity to pay. At the same time they recommended hardship provisions, which the council has since implemented.

The letter also alleged "poor council conduct" at the November 21 meeting. It singled out Mayor Peter Walker's lengthy defence of the rate rise.

Mr Lamarra claimed this was not in line with protocol and as meeting chairman, Cr Walker was required to be neutral.

The Post has sought a response from Cr Walker.

The letter claimed that the council had "overridden the people's feedback" and "imposed its ill-conceived, implied authority."

Several councillors at their meeting said while they acknowledged community concerns they would not be discharging their financial duties if they didn't endorse the rate rise.

The group is seeking a meeting with Mr Hoenig.

They have asked for a response to their letter by December 20. If there is no "satisfactory response" they say they'll consider "other options to achieve an appropriate outcome that supports people's needs."