Port Macquarie-Hastings councillors have engaged in a heated and long debate about the proposed rate freeze at the ordinary council meeting on Thursday, May 16.
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At the February council meeting, councillors considered the motion for a potential rate freeze and requested the CEO to prepare a Draft 2024-2025 Operational Plan with a 0.0 per cent rate peg applied to ordinary and special rates.
The draft plan is on exhibition, with the community able to have their say until Monday, May 20.
The average residential ratepayer would benefit by about $60 annually and the council would lose $2.7 million in income across the council area if a rate freeze was applied.
Councillor Rachel Sheppard put forward a motion that if a rate freeze was adopted, then council not consider using borrowings, reserves or significant cuts to allocations, as suggested in the draft plan, to fund the $2.7 million shortfall.
Cr Sheppard said there would be "significant cuts" to services if a rate freeze is adopted.
"Looking at use of the council's reserves is not sustainable," she said.
"Using borrowings [to cover the $2.7 million shortfall] is not a viable option for mitigation."
Cr Sheppard said the council needs to be more transparent with the community as to where funds would come from to enable a rate freeze.
Cr Nik Lipovac questioned councillors who are in support of a rate freeze, as to where they believe funds should come from.
Mayor Peta Pinson said she has always been "clear and public" with her view on endorsing a rate freeze.
"I have been consistent in my views of a rate freeze for ratepayers," she said.
"I do value the community engagement process we are currently in."
Cr Adam Roberts spoke against the motion. "We are in the middle of engagement with the community [on this issue] and I believe it's inappropriate [to put forward this motion]. We should wait for the feedback and have a look at the data," he said.
Cr Roberts put forward an amendment noting the engagement process was still in progress and it would be inappropriate to adopt any position while seeking feedback, saying the proponent's rationale for adopting a 0.0 per cent rate peg is to ensure the council is becoming more efficient with the expenditure of ratepayers' funds and the Draft 2024-2025 Operational Plan outlines robust spending on road maintenance and parks and gardens.
Cr Lisa Intemann spoke against the amendment and said a rate freeze would mean "cuts to core services".
"This proposal is beyond unreasonable," she said. "[A rate freeze] risks long-term detriment to the council and will starve the council and weaken it."
Cr Danielle Maltman said she found Cr Roberts' amendment to be "factual and transparent".
Cr Sheppard said it is "harmful" to deny information to the community as to where potential service costs would come from if the rate freeze is endorsed.
Cr Lipovac agreed: "[We need to] find out what will be reduced and there is concerns funds will be removed from community services.
"[If a rate freeze is endorsed] we will be taking away so much from the community for a few extra bucks for ratepayers.
"The community deserves to know in advance where the council will be removing [funds]."
Cr Roberts' amendment was put. Cr Pinson, Maltman, Roberts and Josh Slade voted for and Cr Lipovac, Sheppard, Intemann and Lauren Edwards voted against.
Cr Pinson used the mayoral casting vote and the amendment became the motion.
Debate continues
Cr Intemann put forward an amendment, which was ultimately lost, that cuts to staffing, emergency management, economic development, sustainability, natural resource management, or land use planning not be considered if the proposed rate freeze is endorsed.
"The community needs to know what's at stake. The council is going backwards," she said.
Cr Pinson spoke against Cr Intemann's amendment: "The council is not going backwards. Decisions made by me, and those who support me, are not made to harm the community," she said.
"A rate freeze will take some pressure off our community."
Cr Intemann's amendment was put to councillors. The vote was tied and the amendment was lost.
Councillors once again debated Cr Roberts' motion to note that community consultation was underway and that it would be inappropriate to adopt any position. This motion was carried with the mayor using her casting vote to break the tie.
Cr Sheppard said she hopes the community pays attention to this debate and the "repeated [refusal of some councillors] to answer questions [of where funds will come from to cover a rate freeze]".
Cr Roberts said he wants the council to do the best it can to help with the cost of living crisis for ratepayers.
"I would like to hear what the community has to say," he said.
