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Rates restraint limits spending

01 Jul, 2009 04:00 AM
CAMDEN councillors will take the axe to this year's budget to make up a $250,000 shortfall as a result of voting for a smaller rate rise than Camden Council staff sought.

Last week, they decided to raise rates by 7.25per cent, instead of the 12.25per cent proposed by council staff.

They will hold a private workshop in the coming weeks to cut out or reduce services funded in this year's budget.

Councillors have already indicated they will scrap the infrastructure renewal program proposed by council staff that alone stops the council paying $1million in loan repayments this financial year.

But they still need to find another $250,000 in savings because of the reduced rate revenue from a 7.25per cent rate rise.

Council staff have already committed to implement a savings program that will see another $250,000 reduction in costs.

Local Government Minister Barbara Perry gave nothing away this week on whether or not she will approve a 7.25per cent rate rise for Camden. Any rise above the 3.5per cent State Government limit needs to be approved by the minister.

The Advertiser asked Ms Perry's office whether she was likely to support the 7.25per cent figure.

``Determinations for special rate variations will be finalised in the coming weeks,'' a spokeswoman said. ``When making an application for a special rate variation it is important councils put forward a robust business case and demonstrate they have community support.''

At last week's meeting, councillors also voted to accept a wage freeze this financial year. The councillors' allowance will stay at $15,120 and the mayor's at $33,010.

What do you think of the councillors' support for a 7.25per cent rate rise?

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