The Independent Pricing and Regulatory Tribunal (IPART) has announced its decision to approve the 45.78 per cent Special Rate Variation for the Lithgow LGA.
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The approval announcement was made in a release on Thursday, June 16 from IPART.
Lithgow Council Mayor, Maree Statham clarified that the approval from IPART doesn't finalise the increase as the Council will need to vote on it at their ordinary meeting on June 26.
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"The administration are fully considering the details in IPART's technical report," Cr Statham said.
"It will then be brought before Council for Councillors to vote on IPART's decision at the next meeting."
The decision for a proposed increase was made after it had been revealed that the city had been running a budget deficit for more than a decade.
At the November 2022 meeting, Mayor Statham revealed that the deficit could be traced back as far as 1995.
It was at that same meeting where the Council voted to send the application to IPART, following a heated debate in the chamber.
At the time, Councillor Eric Mahony said he couldn't stand by and let the issue continue for future Councils.
"It's important that we do what's right, It won't be popular in certain sections, and I may not get elected again. But I'd rather serve a term where I've improved the well being of the council," Cr Mahony said at the time.
Residents have expressed their concerns about the impact the increase would have on local family budgets if it is finalised.
Esther Brady said that despite the need of an increase for the future of the city, it will leave people in dire circumstances at present.
"When you're a struggling single mother that gets no income other than from centrelink and you've just inherited your parents property it is a lot of money," Ms Brady said.
"We are struggling to make ends meet and even $10 week is a lot for us, and everyone is struggling in town."
Local Homeowner and founder of community organisation 'Nanna's touch' expressed her concerns about the effects on struggling members from the community if the rise is finalised.
"I'm thinking it will only be the base rate, if that is the case it won't be much but in this economy it has flow on effects," Ms Murdoch said.
"With food, gas and electricity prices increasing; to add this to that whole dynamic it is a concerning time"
"Being in a low income bracket, It is going to be a worry week to week in terms of cost of living."
According to Ms Murdoch, her organisation will also need to find ways to support the members of the community that attend her group if the rise is voted for.
"From the perspective of running a community organisation like Nanna's touch, I think we're going to have a lot more people coming in concerned about their budget."
According to IPART Chair Carmel Donnelly, the tribunal access the variation applications based on a number of factors including demonstration of the need for extra revenue and establishing that impact is reasonable on ratepayers.
We considered everything raised in submissions including the impact of rates increases on ratepayers given current cost of living pressures, said Ms Donnelly.
We also considered the impact on communities if councils were unable to deliver services that people depend on.
Lithgow City Council advised on the agenda for its January 2023 ordinary meeting that it be committing to limiting any increase to residential, farming and general business to 27.7 per cent, including the 3.7 per cent rate peg.
Reidun Berntsen
Reidun is a Journalist and writer who lives in a country town 3 hours from Sydney, Australia. From a young age, Reidun has been in love with words and the infinite possibilities they bring. Stories, features and poems have been a major part of her writing career.
Reidun is a Journalist and writer who lives in a country town 3 hours from Sydney, Australia. From a young age, Reidun has been in love with words and the infinite possibilities they bring. Stories, features and poems have been a major part of her writing career.
