Response to draft management plan

May 21, 2008: The Bega Valley Shire Council received 31 written submissions on its the draft 2008-11 Management Plan with 23 opposing the proposed general rate increase of 9.33 per cent.

There were five submissions calling for Council to do more to have the large areas of State Forest and National Park in the Shire contribute to rates revenue.

The Mayor, Cr Tony Allen, said this was a very small number of objections in the context of the 18,645 rate assessments.

"Councillors do not take lightly any decision to increase rates or charges to ratepayers," he said.

"However, costs to Council have increased in the same way that households costs have increased.

"The small number of submissions indicates that there is a general acceptance that Council is not imune from increasing costs and that savings have been made in the past 18 months since the Operational Examination was conducted."

Cr Allen said ‘clear and accessible’ processes were available to any ratepayer in genuine financial stress to work with Council to develop an appropriate payment strategy.

He said one element of the draft plan that drew criticism was the allocation of $300,000 to cover Council liabilities associated with the defined benefits superannuation scheme.

During Councillors’ consideration of the submissions, Council’s acting general manager, Leanne Barnes, reiterated that the superannuation liability was not a discretionary expenditure.

She said that for many years the defined superannuation fund had been self-financing because of strong growth in the sharemarket.

"In effect, Council had been getting a ‘holiday’ from this superannuation contribution for several years," Cr Allen said.

"However, with the recent economic downturn, the contribution is again required.

"There have been no new participants to the defined benefits scheme since superannuation laws were changed in 1993 to the more current superannuation contributions scheme.

"Those long term local government employees, employed prior to 1993, are entitled by legislation to receive a defined superannuation benefit payout on retirement and Council cannot legally withdraw or withhold funds from this scheme," Cr Allen said.

Council has prepared a review of the exhibition process and provided copies of all submissions to the Department of Local Government and the Minister for Local Government.

"Council has stated its case for a special variation and provided all the submissions received during the exhibition process," Cr Allen said.

"It is now for the Department of Local Government to assess all the information and to make a recommendation to the Minister.

"Ultimately, it will be the Minister who determines the success or otherwise of Council’s application."

The Minister’s response to Council’s application is expected by the middle of June.