Dollars and sense in spotlight with council inquiry coming

An Upper House committee examining the ability of local governments to fund infrastructure and services will hold a session in the city on Monday, July 15.

The public hearing follows previous sittings in Sydney, Lismore, Tamworth and Dubbo and follows an invitation by Albury MP Justin Clancy.

"It is an important opportunity for our local councils to speak on the current financial challenges they face and the impact on their ratepayers," Mr Clancy said.

The Liberal MP, as well as Albury, Berrigan, Federation, Lockhart and Snowy Valleys councils, has put a submission to the inquiry which has former Albury deputy mayor and now Greens politician Amanda Cohn as a member.

Mr Clancy raised concerns around the rate burden for farmers, pointing to a fourth-generation landholder at Mannus, near Tumbarumba, who has had a 91 per cent hike on part of his property in two years.

"This dramatic increase affects not just his home but also the viability of his business on this land his family has owned for generations," he stated.

Mr Clancy reflected there was a "strong sense" among farmers that they bore a disproportionate level of rate rises compared to other land uses and owners.

"For example, I have been informed about adjacent parcels of land, one for farming and the other forestry, where the valuation of the farm land per hectare is now approximately seven times that of the forest land," he submitted.

Albury mayor Kylie King in her submission also invited the committee to the Border and said the council could provide a venue, which is still to be finalised.

Her message to the inquiry was that the peg used to govern rates "is limited in its purpose and adds to the financial sustainability challenges of local government" as it fails to take account of costs and service demands shifting.

Federation Council urged the committee to look at rate pegging systems in Australia, noting since its introduction in NSW in 1977 it had meant "costs facing local government have not matched revenue coming in".

Snowy Valleys mayor Ian Chaffey pointed to Riverina councils relying on federal grants for between 11.8 and 25.4 per cent of their operating revenue, while Sydney's Waverley Council has just 1.4 per cent of its income from that source.

He noted that council, which covers Bondi, generates $10.7 million from parking fines, $10.6 million from parking meters and $4.5 million from parking fees.

"These income streams are just not available to rural councils," Cr Chaffey stated.

Berrigan Shire mayor Julia Cornwell McKean and chief executive Karina Ewer highlighted costs which have been shifted from federal and state governments.

An aerodrome, libraries, citizenship ceremonies, weed and pest management, maintaining crown land and emergency services were all cited as areas where the council was picking up a tab that could be met by government.