Kiama Rates Most Costly But Rest Not Far Behind

Illawarra Mercury

Thursday January 4, 2007

CHALPAT SONTI

Just how well are our councils doing? A State Government report card has ranked NSW local authorities in everything from how much debt they have to the amount of rubbish they pick up. In the first of a two-part series, CHALPAT SONTI looks at how much you pay in rates and how long development applications take. TOMORROW: Just how much the region's councils spend on their residents - and how we make use of their services.

THEY'RE the rates you apparently have to have.

At an average $928.60, Kiama rates are the highest in the Illawarra, and the highest in NSW outside the greater Sydney area.

But Kiama residents are not alone. All three councils in the region figure in the state's top 25, according to the State Government's Comparative Information of NSW Local Government Councils report for 2004-05.

That makes it the hardest region on ratepayers' pockets outside Sydney.

But Kiama Mayor Sandra McCarthy said her council's rates - the fifth highest in the state - were justified.

"We often have to provide services like transport that in bigger cities get provided by other forms of government," she said.

"Although (rates) seem high, they have to be to provide the services we do."

Kiama was also hamstrung by a small population and a smaller industrial base. It collects only one-third of revenue from rates - the region's lowest. Almost as much of its $31.65 million annual income is from user charges.

"The council realised about 15 years ago it couldn't just rely on rates for all its income, so we really took on entrepreneurial activities," Councillor McCarthy said.

The average farm and business rates in the area plummeted by up to 30 per cent, as the residential rate rose 8 per cent.

The drop in rural rates was due to the council deciding to support farmers in tough times, she said.

Farmers within Shellharbour City Council's boundaries could be wishing the same. Their average rural rate of $3009 is the fifth highest in the state.

Shellharbour City Council acting general manager Peter O'Rourke partly blamed a "statistical anomaly" and said the council's take was reducing as the number of farms dropped.

Much of the historically high farm rates were due to the way former councils set them and were "very difficult to unravel".

The council did have the region's lowest average residential rate - $712.02 - 22nd in NSW.

"We need to tread lightly on our residents. We're not servicing any debt and our revenue per capita is significantly less than other councils," Mr O'Rourke said.

Wollongong has NSW's third-highest business rate, as reported in the Mercury yesterday, and ranks 16th for residential rates.

Wollongong City Council CEO Rod Oxley said much of this was because it provided a lot of regional facilities, such as the art gallery, aquatic centre and music conservatorium.

© 2007 Illawarra Mercury

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