ordinary meeting of council to be held on tuesday, 26 april 2005 at ...

7. WHY IS THE VARIATION NECESSARY?
Please comment on each <strong>of</strong> the following:
A. How is the additional revenue from the Increase <strong>to</strong> <strong>be</strong> applied? - Council MUST SPECIFY the
expenditure for each item that the additional revenue (excluding any income adjustment) is <strong>to</strong> <strong>be</strong> applied <strong>to</strong>.
PROPOSED EXPENDITURE MUST EQUAL ADDITIONAL REVENUE SOUGHT.
Council is seeking a 5 per cent special rate increase for a period <strong>of</strong> seven years, commencing 1
July 2005. This 5 per cent increase would <strong>be</strong> subject <strong>to</strong> annual rate peg increases, which have
<strong>be</strong>en estimated at 3.5 per cent in Council’s 10 Year Financial Model.
Based on a 5 per cent increase approximately $1,760,000 ($1,887.310 less pensioner rebates <strong>of</strong>
$127,310) would <strong>be</strong> generated in 2005/2006 with subsequent increases as projected in Council’s
10 year financial model. This figure is based on 37,224 rate assessments less 3,675 pensioner
rebates. Table 1 shows the annual amount <strong>to</strong> <strong>be</strong> generated by the Environmental Levy:
Table 1 Expected yield generated from a 5 per cent rate increase
Year 05/06 06/07 07/08 08/09 09/10 10/11 11/12 TOTAL
$’000 1,760 1,822 1,885 1,951 2,020 2,090 2,163 13,693
The special rate will <strong>be</strong> in addition <strong>to</strong> the rate pegging allowance <strong>of</strong> 3.5 per cent (as forecast)
during the period for <strong>ordinary</strong> rates and annual charges.
During the course <strong>of</strong> the seven year programme, Council will continue <strong>to</strong> evaluate community
needs and environmental pressures. Whilst there will <strong>be</strong> ongoing need for Council commitment
<strong>to</strong> maintain and preserve initiatives <strong>of</strong> this programme, the amounts currently required are
significantly smaller than the costs <strong>of</strong> delaying the initial outlays required, representing
substantial savings over delaying the investment. Council will report annually <strong>to</strong> the community
and <strong>to</strong> the Minister for Local Government in regards <strong>to</strong> its progress in achieving the outcomes
sought from this proposal.
Attachment 1 provides a discussion on how transparency and accountability will <strong>be</strong> achieved
throughout the delivery <strong>of</strong> the programme. This relies on the involvement <strong>of</strong> the community <strong>to</strong>
provide advice on programme direction.
Environmental Management Programme
The additional revenue from the variation will <strong>be</strong> applied solely <strong>to</strong> the projects identified in the
Environmental Management Programme. The programme has <strong>be</strong>en developed <strong>to</strong> address five
objectives, as supported by various state, regional and local strategies, the key strategies as
identified in italics.
1. Protection and enhancement <strong>of</strong> biodiversity - Catchment Blueprints for Hawkesbury Nepean
and Sydney Harbour 2004 and various Recovery Plans for Threatened Species and
vegetation communities
2. Support and promote urban communities through sustainable design and development -
Sydney Metropolitan Strategy 2004
3. Manage water and catchments incorporating a <strong>to</strong>tal catchment perspective - Meeting the
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