Ratepayers will have to dig deeper into their pockets this year as council has been approved to increase rates by 5.9 per cent from July.
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Earlier this year council applied to the Independent Pricing and Regulatory Tribunal (IPART) to increase income above the rate peg of 2.4 per cent by 3.5 per cent, creating a rate increase of 5.9 per cent.
"Based on the council's application, average residential rates will increase by $35 in 2015-2016, business rates by $88 and farmland rates by $210,"
- Dr Boxall
IPART approved the increase yesterday.
Narromine is one of 22 councils in the state which has had the rate increase approved.
IPART chair, Dr Peter Boxall, said the increase would generate an additional $525,000 for council above the rate peg over the next two years to improve local roads, make loan repayments and improve the financial position of council.
"Based on the council's application, average residential rates will increase by $35 in 2015-2016, business rates by $88 and farmland rates by $210," he said.
The shire was approved for two consecutive increases of 5.9 percent in 2015-2016 and 6.9 in 2016-2017 including the rate peg, to be retained permanently in its rate base.
Narromine Shire mayor, Bill McAnally said this was a positive step for council to prove it's Fit for the Future.
"We've got to prove we're fit for the future," he said.
"IPART doesn't give this out willy nilly and a lot of work was put into this."
Dr Boxall said these special variations were designed to give councils the flexibility to generate additional income above the rate peg to meet their specific needs.
"In making these assessments we have considered each council's long-term financial plan, taking into account the financial need of the council and the capacity and willingness of ratepayers to pay the requested increase," Dr Boxall said.
"Narromine [was] able to meet the criteria for approval of the special variation by demonstrating a clear need for the additional revenue, that they had appropriately engaged the community about the proposed rate increases and that they are taking steps to improve productivity and contain costs."
When the rate increase was proposed to the Trangie community late last year the community voted against it.
"It's exactly the same as any household, if you're spending more than what you're bringing in, something's got to give. I believe what Narromine Shire Council needs to do is have a reallygood look at the efficiencies," resident Kevin Flynn said at the meeting. Cr McAnally said council was working on its efficiencies.
"I'm confident we can stand alone," he said.
Oberon and Weddin councils were also awarded special rate variations in the Central West.
