Securing our future - City of Canada Bay to consult on Special Rate Variation
Wed, 17/08/2022 - 14:56

To secure a bright future for our residents and businesses and fund identified increases in services and improvement to public assets, the City of Canada Bay is set to embark on community consultation for a Special Rate Variation (SRV).

"We will shortly be consulting with the community about a rate variation which will allow us to resource our community’s vision for the future and bring about an expansion in the services our growing City needs," City of Canada Bay General Manager John Clark said.

"The decision to consult with our community about a SRV has been taken following years of planning and financial modelling and the variation in rates will work in parallel with an ongoing program of internal business and productivity improvement to ensure our organisation’s proud record of financial sustainability will continue into the coming decades."

A Special Rate Variation is a common mechanism, which requires approval by the NSW Independent Pricing and Regulatory Tribunal, that allows for Councils to respond to, and satisfy, future needs through a variation in the rates that local residents and businesses pay.

"The City of Canada Bay is a very rare case in NSW - having never applied for a Special Rate Variation. We are proud to have provided excellent services and infrastructure for our growing community over the past two decades without the need for a SRV, however significant past and forecast population growth now requires Council to secure our future and consult with our community about a SRV."

In addition to ensuring ongoing funding for the maintenance and provision of current assets and services, a Special Rate Variation will allow the City of Canada Bay to provide residents:

  • An expanded biodiversity and climate program
  • An enhanced and expanded town centre beautification program
  • A renewed green spaces and sports field maintenance program
  • More resources for maintaining and managing our growing tree canopy
  • An expanded community services team and resourcing to deliver our new Cultural Plan
  • Infrastructure and local asset renewal such as roads, foreshore, footpaths and buildings
  • Reduced processing times for Development Applications (DAs)
  • Increased resources for strategic town planning

"For residents on our minimum rate, this increase would be $1.80 per week in 2023/24, followed by an increase of $1 per week in the following three years, with all increases being in addition to the rate peg. As another example, for residents who own a property with land value of $1.5 million the variation of rates equates to $3.30 per week in addition to the rate peg in 2023/24 with no further increase in the following years aside from the rate peg."

"For businesses with land value of $1.2 million, the variation of rates would equate to $6.30 per week in 2023/24 in addition to the rate peg with no further increase in the following years aside from the rate peg."

Whilst residents and businesses will be affected differently, in total, Council is applying for an increase of 12.24% above the rate peg for 2023/24, 2.31% in 2024/25, 2.19% in 2025/26 and 2.08% in 2026/27. This equates to a total cumulative increase of 19.78% above the rate peg on average over four years.

The rate peg is an annual increase to Council rates across NSW determined by the NSW Independent Pricing and Regulatory Tribunal which accounts for inflation and is based on the increase in cost of a selection of goods and services that NSW councils purchase.

"Historically, City of Canada Bay residents and businesses have always paid lower rates on average than residents and businesses of our neighbouring Councils and the variation we are taking to the community ensures that will still be the case."

In 2026/27, following this potential Special Rate Variation, City of Canada Bay residents will pay less on average than Hunters Hill, Burwood, Lane Cove and Inner West Councils, with only Ryde and Strathfield Council residents paying lower rates and this is assuming these Councils do not apply for any variation of their rates above the rate peg in the coming four years.

Our local businesses would in 2026/27 pay less than Burwood, Lane Cove, Inner West, Ryde and Strathfield Councils following this proposed variation. Only Hunters Hill Council will have lower rates on average for businesses and this also assumes these Councils will not apply for a variation above the rate peg.

For more info and to sign up to alerts on the Special Rate Variation project visit: collaborate.canadabay.nsw.gov.au/srv