Wollongong City Council’s draft Management Plan 2011-14 includes a rate rise of 2.8 per cent for 2011-2012.

Council is applying the general rates increase that has been approved by Independent Pricing and Regulatory Tribunal (IPART).

Council’s Administrator Richard Colley said the increase is below other State-controlled costs.

“Council will be applying the 2.8 per cent increase,” Mr Colley said. “The rates increase is below the estimated increases in costs of council’s expenditure particularly those State controlled costs such as electricity and statutory payments that have increased well above these levels and have adversely affected the net result in future financial years.”

Owing to recent land revaluations by the NSW Valuer General the changes to rates across Wollongong City from July 2011 will see some ratepayers receiving a decrease while others will pay more. The NSW Valuer General carries out a reassessment of land value every three years.

Administrator Richard Colley said the movement in rates for landowners would be less dramatic than in previous years.

The land revaluation will not see Council’s total rate income change but there will be a redistribution of the amount each ratepayer has to pay, based on the value of their property compared to values across the city as a whole.

“Within any one suburb there may be variations between rates payable on properties as a result of the latest land valuations,” Mr Colley said.

The financial forecast shows that expenditure is planned to exceed cash inflows for the year by $4.24 million. While Council’s financial strategy calls for a near balanced funds result, improvements in prior years results have allowed the injection of cash back into capital projects in 2011-2012.

Council’s budget includes a $1 million provision for an election in the 2011-12 financial year. This is offset by a $1.5 million decrease in the cost of superannuation following a revision of the catch up payment required by the Local Government Superannuation Defined Benefits Scheme.

Council offers a $250 rates rebate for pensioners, and has a safety net in place to assist ratepayers who incur an increase in their rates which would cause them substantial financial hardship

For more information, contact Council’s Customer Service Centre on 4227 7111 or visit Council’s website www.wollongong.nsw.gov.au.