The draft Delivery Program, Operational Plan and Budget 2023/24 sets out Council's services, planned activities, key projects and budget including fees and charges for the financial year 2023/24.

In 2023/24, Council is budgeting total income before capital grants and contributions of $269.4m and expenses of $269.2m resulting in a surplus of $0.2m (before capital grants and contributions). The key drivers of this year’s budget include:

• Rate PEG minimum of 3.7% provided by IPART
• Continued draw down of the Domestic Waste Management reserve
• Fees and Charges indexed at 7% unless stated otherwise
• Staff industrial award estimated increase of 4% pending the new award agreement
• Including adequate budget for the maintenance of Council facilities under its control

Fees and Charges are indexed at 7% unless stated otherwise. Statutory fees are as per determination.

The draft Long Term Financial Plan (LTFP) sets out the ten year budget forecast, underlying assumptions, sensitivity analysis, financial modelling for possible scenarios and methods of monitoring financial performance.

The LTFP sets out two scenarios, both of which maintain current service levels:

• Scenario 1 – Business as Usual, maintain existing service levels
• Scenario 2 – Addresses the Infrastructure Asset Renewal Backlog

A key achievement in the LTFP is Council generating surpluses each year starting at $170,000 and growing to in excess of $3.3M per annum over the life of the plan. In addition, every financial performance indicator exceeds the performance benchmarks set by the Office of Local Government for the full ten years of the plan.

The draft budget includes the full harmonisation of rates across the Inner West.

Rates harmonisation does not mean that Council collects more money in total rates - it just redistributes the cost amongst ratepayers.

Rates harmonisation was originally planned to take place over eight years from 2021-2029. At the moment properties that aren’t on the minimum rating are charged differently across the former Local Government Areas. The draft budget instead proposes full harmonisation from 1 July 2023. This ensures all ratepayers across the LGA are charged rates fairly based on their property values, so all members of the community who share and benefit from the Inner West’s services and infrastructure such as parks, roads, footpaths, libraries and rubbish collection contribute equally to the cost of these.

You can read more about rates harmonisation in the Council report. The report includes tables with sample land values showing the difference between the existing eight-year plan and the proposed 100% harmonisation.

How does Council calculate rates?

Rates are based on the land value which is set by the NSW Valuer General’s Office.

Inner West rates for 2023/24 are calculated using the formula:

Land value (set by the NSW Valuer-General’s Office) × rate in the dollar (subject to minimum rate of $899.08 for Residential Ordinary, and $867.35 for Business General)

Note that new land values were recently issued by the NSW Valuer General’s Office, and these valuations come into effect from 1 July 2023. Property owners whose land values have increased will see a proportionate increase in their rates.

Visit the NSW Valuer General’s website to learn more about how the NSW Government values land.