Albury councillors hit pause on massive 29 per cent rate rise plan

In short: Albury City Council has deferred a decision to apply for a Special Rate Variation of 30 per cent over two years. The regional council is grappling with a multi-million-dollar operating deficit. What's next: The decision will be deferred until April or May next year in line with the 2027/28 budget process. Albury councillors have voted to defer consideration of a proposed rate rise of almost 30 per cent, as they grapple with a multi-million-dollar operating deficit. The 5-4 vote at last night's council meeting follows community backlash to a proposed special rate variation (SRV), with residents calling on council to identify further savings before asking ratepayers to pay more. The revised proposal included annual increases of 14 per cent over two years, amounting to a cumulative rise of 29.96 per cent. It would cost the average ratepayer an extra $375 a year. Councillor Jess Kellahan moved the successful motion to defer consideration of the SRV until April or May 2027, as part of the preparation of council's 2027-28 Operational Plan and Budget. Cr Kellahan said the SRV process had been "flawed from the very beginning." "Rather than first establishing the true extent of our financial position, understanding the deficit and identifying the actual funding gap, we went straight to our community with an SRV as the solution," she said. She said she did not believe council had exhausted every opportunity to reduce expenditure, improve efficiencies and address structural problems within the organisation. "Deferring this SRV is not ignoring our financial challenges, it's about taking responsibility for them," she said. "We cannot ask the community to pay more, while we are still working out where we can pay less." "People are frustrated, they're concerned and quite frankly they're losing confidence in council." Councillor Kevin Mack voted against the deferral motion and warned that delaying the process would have long-term consequences for ratepayers. He said councillors had not been fully informed about the extent of the council's financial difficulties. "We are very much, as you are, shocked and appalled," he said. 'Get your own house in order first' Albury Ratepayers Association president Susan Keighran urged councillors to reject the proposed increase, saying residents were already struggling with cost of living pressures. She said the association had collected almost 3,400 signatures on a petition opposing a rate rise above the NSW rate peg. "They simply can't afford it," she said. Ms Keighran said cuts to Lavington Library's opening hours and the closure of the Murray Art Museum Albury on Mondays did not deliver significant savings. "True leadership demands grit to enforce rigid internal spending controls, mandate comprehensive efficiency reviews and getting your own house in order first," she said. She said the association had given local MP Justin Clancy a letter seeking an investigation into council's financial management, which she said he would pass on to NSW Minister for Local Government Ron Hoenig. Albury ratepayer and community advocate Charles Mitchell who worked in local government for more than two decades, argued a 12-month pause would give council time to identify lasting savings. He said any savings needed to be ongoing, rather that one-off, and council should focus on core services and infrastructure. "The council has to rebuild the trust with the community," Mr Mitchell said. Resident calls for broader financial recovery plan Albury resident Brett Marsh said he could see a case for a special rate variation but was not "convinced" the proposed 29.96 per cent increase was the right figure. Mr Marsh said he supported the recommendations for extended and detailed community consultation, arguing any rate rise should form part of a broader financial recovery plan with clear targets and public reporting. "An SRV is part of a financial recovery strategy, not the strategy itself," he said. Mr Marsh said residents should be able to see what council was delivering in return for higher rates and how progress towards financial sustainability would be measured. "The SRV may provide the financial breathing room," he said. "But the ultimate measure of success will be what council achieves with it."