Special rate variation for infrastructure

Since 2001 Council has had approval from the State Government to raise additional rates revenue for renewal of Council roads which are in poor condition.

On 26 November 2013 Council resolved to apply to IPART under Section 508(2) of the Local Government Act to continue the special rate variation for infrastructure permanently. Council has been granted an approval from IPART for the permanent continuation of the five per cent (5%) Infrastructure - Special Rate Variation.

This year the Infrastructure - Special Rate Variation amounts to approximately $3.4 million.

The Infrastructure - Special Rate Variation is broken into two components; a base amount of $34 plus an ad valorem component based on the land value. The base amount component raises 50% of the total Infrastructure - Special Rate Variation with the ad valorem component raising the other 50% of the total Infrastructure - Special Rate Variation you can see them as two separate lines on your bill.

Improving our roads

Ku-ring-gai has a vast network of roads. Since the introduction of the Infrastructure - SRV in 2001, we have seen ongoing improvement to the condition of our roads. Despite these improvements, a recent assessment has determined that 56% of our roads are still in a ‘poor’ condition.
The priority for Council’s roads program is to continue renewing our ‘poor’ roads bringing them into a ‘good’ condition. In addition to this, we must continue the work already started and maintain the quality of our roads in a ‘good’ condition.  

Council submitted an application to the NSW State Government’s Independent Pricing and Regulatory Tribunal (IPART) for the continuation of the existing Infrastructure - Special Rate Variation (SRV). Council’s application was assessed by IPART who approved the Infrastructure - SRV to be permanently retained in the rate base.

Council implements a range of initiatives to redirect funding to roads and other assets. These include:

  • A rates restructure to provide an extra $36 million over the next 20 years.
  • Operating efficiencies to redirect $18 million over 10 years.
  • Redirecting funds from lower priority assets and services into our roads.
  • Even with this additional funding, Council still requires the Infrastructure - SRV to fund the shortfall.

More information

Peter Lichaa
Manager Technical Services
9424 0000
plichaa@krg.nsw.gov.au

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