Rate rise stays for 25 years

Gosford Council has not made it clear that its "civic infrastructure" (CIS) rate levy would remain in place for 25 years, according to community activist Mr Ed James.

Mr James said that it had been stated that the rate increase would apply over five years, with many people believing that the levy was for this period.

He said: "There are to be five annual increases, totalling an average of $201 87 in all over five years."

Mr James said each annual increase would fund a 20-year loan.

"Five loans staggered over the first five years each of 20 years' duration results in 25 years."

He said rates would not fall back to current "pegged" levels until after that period.

Mr James said he had complained about the way the council had publicised the rate increases and how the regional media had misconstrued it.

"I am concerned that the advice on the (Council) website is supportive of the same disinformation."

Gosford Council staff had confirmed to him that the rate levy would be in place for 25 years.

In an email from Council's finance manager Mr Brian Shackleton, Mr James was told: "Council is seeking a Special Rate Variation to proceed with the 33 funded items in the Civic Infrastructure Strategy.

"One loan will be taken up in each of the first five years of the strategy and the 9.98 per cent (6.48 per cent CIS and assumed rate-pegging of 3.5 per cent) increase in rates each year is to fund the repayment of these loans.

"Each loan will be repaid over 20 years, therefore from the time that the first loan is raised until such time as the final loan is repaid will be 25 years.

"The rates will increase for each of the first five years, remain at that level for the next 15 years and then reduce over the following five years.

"Each year the Council will also apply the allowable rate-pegging limit as determined annually by the Minister for Local Government and this will remain in place as part of the ongoing General Fund Rate Levy.

"This proposal refers only to the General Fund rating structure.

"After 25 years all but 1.5 per cent of the Civic Infrastructure Levy will be removed.

"The 1.5 per cent will remain in place to fund the ongoing maintenance of those works constructed as part of the Civic Infrastructure.

Email, May 11 Ed James, Umina