Albury Council Proposes Significant Rate Hike to Address Debt

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Arabic version: مجلس مدينة ألبوري يقترح زيادة كبيرة في الرسوم لمعالجة الديون

Albury City Council is considering a rate increase of up to 42 per cent over two years to tackle an estimated $18 million debt. According to ABC News, the council is seeking community feedback on two options: a 40 per cent increase over three years or a 42 per cent increase over two years.

This proposed rate hike would position Albury among the councils with the highest rate increases in New South Wales, trailing only North Sydney and Glen Innes Severn councils, which had even larger approved increases. Mayor Kevin Mack described the situation as a “catch 22,” emphasizing the necessity of the increase in light of rising costs and previous savings measures.

While the council is pushing for the rate hikes, many residents and some councillors have expressed concerns about affordability. Deputy Mayor Jess Kellahan voiced her opposition to the extreme rate increase, arguing that residents should not be held accountable for previous financial mismanagement. She highlighted that the community did not choose to undercharge developer contributions or approve various capital projects.

Resident Charlie Mitchell also criticized the proposed increases, stating they would be unaffordable for many households. He noted that if the council relied solely on the normal rate peg, borrowing could escalate to over $250 million in the next decade, creating an unsustainable financial burden. Mitchell suggested a more gradual approach with annual increases of five per cent instead.

Albury CEO Steve McGrath acknowledged the limited options for reducing debt outside of rate increases but indicated that the proposed figures might be adjusted based on community feedback. The council plans to finalize its decision on the special rate variation later this year before submitting it to the NSW Independent Pricing and Regulatory Tribunal for approval.

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