The Independent Pricing and Regulatory Tribunal announced yesterday that it had approved special rate variations for councils at Maitland, Cessnock and Singleton.

In Maitland, it means council will get an extra $61.2 million above the rate peg during the next seven years to maintain its services, roads and facilities and, in some cases, improve them.

IPART chairman Peter Boxall said Maitland Council’s rate rise was one of the largest cumulative increases in NSW. Dr Boxall said council’s application was assessed against the NSW government’s criteria. 

He said submissions from ratepayers, community groups, business groups and ratepayer associations were also taken into account.

“We are aware that concerns have been raised with the council and with IPART about the affordability of the increase, the level of community 

consultation and the need for the council to reduce operating expenses,” he said. “We have considered these concerns and have determined that the application addresses these issues and meets the criteria for approval.

“Our decision provides the council with the maximum allowable increase, but council has the discretion not to apply the full 7.25 per cent increase in any of the next seven years in order to reduce the impact on its ratepayers.”

In 2014/15, ordinary residential urban rates will rise by about $71 and non-urban residential rates will climb by about $129. 

Business rates will go up by about $345 and farm land rates will jump by between $87 and $121 next financial year, under the new rates scheme.

Council applied for the special rate rise to fight off a projected $92 million deficit over the next decade.

Increased borrowings, loans and a heavier reliance on grant funding will supplement the rate rise. Maitland City Council general manager David Evans said the extra revenue would help council maintain its level of services.

“We believe a seven-year period provides certainty to ratepayers and will also see council deliver some significant improvements to our services,” he said. “Residents can expect to see more spent on recreational cycleways, roads and footpaths, sporting facilities, public amenities and access to the Hunter River over the next few years.” 

IPART has also approved Singleton Council’s application to permanently increase its rate income by 7.3 per cent, which will generate $8 million above the rate peg for roads over the next decade.

Cessnock council has been given permission to lift rates by 9.55 per cent for one year.

The new rates will come into force on July 1.