Corporate Plan 2009-2012: Part B.pdf (2.99MB) - Hastings Council

Statement of fees and charges
Statement of fees and charges to apply to rateable and non-rateable properties
Council will increase Sewer charges by 8% and water charges by 7% in 2009-10. This is due to a range of factors
including:
1. The final outcome is still uncertain in relation to the ongoing State Government Enquiry into the secure
and sustainable future of urban water supply and sewerage services for non-metropolitan NSW.
Despite Council's recent response to maintain the "Status Quo", Council acknowledges that the
complete loss of Water and Sewer services and their management from Port Macquarie-Hastings
Council remains a potential outcome of this enquiry in the longer term.
As such, Council is seeking to deliver to ratepayers the highest quality long-term Water and Sewer
services regardless of the enquiry outcomes, and as such will be committing significant funds within the
coming years to confirm the delivery of highest quality services and infrastructure whilst still in control of
these assets.
2. Proposed additional regulatory requirements outlined in the above-mentioned State Government Enquiry
Report released in December 2008 are likely to see increased costs associated with both compliance
and service delivery improvements.
3. Recent changes to the structure of Council's water supply tariff to comply with NSW State Government
guidelines and achieve a 25/75% spilt between the income received from water access and usage
charges respectively, is now resulting in an ongoing reduction in both water consumption and associated
income.
While this trend in reduced water consumption has assisted in deferring future capital works, it has also
reduced projected annual income. In addition, the reliance now on 75% of Council's annual water supply
income from water usage charges poses a significant financial risk should an extend period of wet
weather occur and the resulting further reduction in water usage and total income.
It is considered necessary to cater for this risk and improve the overall financial viability of the water
supply fund with the establishment of a reserve fund to address this risk. It is therefore proposed to
progressively establish a $5M reserve fund over the next five to ten years and additional income will be
required to achieve this outcome.
4. Increasing electricity costs and tariff changes, including additional energy charges and the removal of
Council's ability to utilise the previously available cheaper "Shoulder Tariff Periods" for water supply
pumping activities has resulted in a significant annual increase in total electricity charges.
5. The NSW State Government introduction of revised water access and volumetric usage charges for all
water pumped from unregulated rivers has resulted in an annual increase in water supply operational
costs.
6. The proposed introduction of fluoridation for the water supply scheme will include significant additional
operational costs, which require funding in the 2009-10 water supply operational budget and also for
subsequent years.
7. Residents of the Innes Peninsula, Area 13, Sancrox industrial, Sancrox Rural Residential and King
Creek areas will all benefit from the capital works proposed within the Water Supply program for 2009-
10. Further Council acknowledges the funding partnership with Sovereign Hills in the delivery of these
major capital works projects.
8. The recently delivered and upcoming water and sewer assets (eg. Wauchope and Village water
treatment plants, Lake Cathie Bonny Hills & Dunbogan Sewage Treatment Plant upgrades) are giving
10 Port Macquarie–Hastings Council