Councillors have decided to let residents, ratepayers and businesses have the opportunity to provide feedback on two key matters central to the future of our region's financial sustainability.
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At the Ordinary Council Meeting on February 15, councillors considered motions for a potential rate freeze for 2024-2025, and the potential abolition of the Town Centre Master Plan (TCMP) component of the Port Macquarie Ordinary Business Rate.
Councillors resolved to include a 0.0 per cent rate peg (a rate freeze) for the 2024-2025 financial year.
When speaking to his motion during the meeting, councillor Adam Roberts said it was "not a new idea" that he was proposing a rate freeze.
"Rate freezes have been talked about for several years in this chamber now," he said.
"I don't believe it's the ratepayers responsibility to fund the gaps due to management issues."
Cr Roberts said he also wanted to make sure that any funds taken out of the Operational Plan or budget didn't have a "significant impact" on services and projects.
Councillor Peta Pinson also spoke in support of the motion.
"It's not surprising to anyone that we're in a cost of living crisis. It's unaffordable for people to be living," she said.
A report put to councillors included a rate increase of 4.6 per cent as determined by IPART.
Cr Roberts said when making a decision he "looks at a range of factors" including staff reports and feedback from the community.
Cr Sheppard put forward an amendment, which was ultimately lost, which would have seen the council note the draft 2024-2025 Operational Plan is being developed with a 4.6 per cent Rate Peg included.
Cr Sheppard said there's "misunderstandings" in the community and within council that Port Macquarie-Hastings Council is "rolling in a treasure chest".
"Should we go down the path of a rate freeze... it will be for the benefit of about $60 a year for the average ratepayer," Cr Sheppard said.
Councillor Nik Lipovac spoke in support of the amendment.
"We are setting up the next term of council to fail [if council moves forward with a rate freeze]," he said. "We're digging a financial hole for the next term of council to climb out of.
"I am disgusted by the fact that we have to argue this on the floor in the chamber."
Cr Pinson spoke against the amendment: "At the end of the day, our ratepayers are not responsible to keep this organisation afloat."
Cr Intemann said she couldn't disagree with Cr Pinson more than she does on this issue.
"We've been given a very reasonable response from the staff that we will be further drowning if... we don't make the council's financial position better," she said.
The amendment was put to councillors, with councillors Nik Lipovac, Rachel Sheppard, Lauren Edwards and Lisa Intemann voting for and councillors Josh Slade, Danielle Maltman, Adam Roberts and Peta Pinson voting against.
Cr Pinson used the mayoral casting vote and the amendment was lost.
The original motion put forward by Cr Roberts was carried. Councillors Adam Roberts, Peta Pinson, Danielle Maltman and Josh Slade voted for and councillors Nik Lipovac, Rachel Sheppard, Lauren Edwards and Lisa Intemann voted against.
Cr Pinson used the mayoral casting vote and the motion was carried.
Council will now request the CEO to prepare Draft 2024-2025 Operational Plan with a 0.0 per cent rate peg applied to Ordinary and Special Rates.
TCMP rate debate
Councillors also debated the Town Centre Master Plan (TCMP) during the meeting and resolved to remove the TCMP component (levy) of the Port Macquarie Ordinary Business Rate and receive information on the potential redistribution of these rates across all ordinary rate sub-categories - into the development of 2024-25 Draft Operational Plan.
When speaking to the motion he put forward, Cr Roberts said this is an information request and would have to go to the community for feedback.
"The intent here is to make sure what we're doing is transparent," he said.
Cr Sheppard put forward an amendment to move the staff recommendation, which was ultimately lost, which would have seen the council endorse a 32 per cent reduction in the TCMP through to 2027 and a 45 per cent reduction thereafter.
The amendment was put to councillors, with councillors Nik Lipovac, Rachel Sheppard, Lauren Edwards and Lisa Intemann voting for and councillors Josh Slade, Danielle Maltman, Adam Roberts and Peta Pinson voting against.
Cr Pinson used the mayoral casting vote and the amendment was lost.
The motion put forward by Cr Roberts was carried, with councillors Adam Roberts, Peta Pinson, Danielle Maltman and Josh Slade voting for and councillors Nik Lipovac, Rachel Sheppard, Lauren Edwards and Lisa Intemann voting against.
Cr Pinson used the mayoral casting vote and the motion was carried.
Port Macquarie Hastings Council CEO, Dr Clare Allen, said staff will now consider these resolutions of the council and incorporate them into the preparation of the Draft Operational Plan and Budget, which will go to the April Ordinary Meeting of Council.
"Once endorsed by councillors, the Operational Plan and Budget will then be exhibited for a period of 28 days, providing the community with the opportunity to give feedback on how these matters may impact them," Dr Allen said.
"The business will need to find additional savings of about $2.7 million in 2024-25 as a result of a rate freeze and explore suitable options to help mitigate the financial impacts of the removal of the TCMP in the development of the Draft OP. Once the Draft OP is endorsed, it will go on public exhibition for the community to have their say.
"The feedback collected will inform the development of the final OP which will be considered by the council in June," Dr Allen said.
