Leeton Shire Council, at its September Ordinary Council Meeting, agreed to consult the community on three proposed Special Rate Variation (SRV) options. The community is invited to consider all three options before Council decides whether to apply for an SRV.
At the same meeting, Councillors also endorsed for consultation a revised Long-Term Financial Plan, draft Hardship Policy and community engagement strategy.
An independent financial review undertaken in 2025 by the University of Newcastle, involving Professors Joseph Drew, Masato Miyazaki and Yunji Kim, confirmed that Council's General Fund is not financially viable under current settings. Its Water and Sewer Funds are financially sustainable. The review found that continuing with rate peg increases alone for the General Fund would not provide enough income to maintain services and community assets over the long term.
Mayor George Weston said Council had a legal responsibility to address the finding while listening carefully to the community.
"We know a proposed increase in rates is a serious matter for households, businesses and farmers, especially with cost-of-living-pressures. Council has worked hard to find efficiencies and is committed to keep looking for further savings, but the independent assessment shows that work alone will not resolve the General Fund's financial position."
The proposed increases to Council's general rate income would take place over two years from 2027/28 and then remains permanently in place. The figures below include assumed rate pegs of 4.77% in the first year and 5.31% in the second year, as forecast by Professor Drew:
- Option 1, Maintain Services: 28.5% in the first year and 13.773% in the second, a 46.198% cumulative increase over two years. This would close the operating gap and address the asset renewal backlog, but makes no allowance for new capital projects over the next ten years.
- Option 2, Modest Progress: 28.5% in the first year and 16.73% in the second, a 49.998% cumulative increase over two years. This includes everything in Option 1 plus Council's contributions towards expanding Eventide Homes social housing in Yanco and sporting precinct optimisation works.
- Option 3, Bold Progress: 28.5% in the first year and 19.71% in the second, a 53.827% cumulative increase over two years. This includes everything in Option 2 and Council's contributions towards the construction of cabins at Gogeldrie Weir and Whitton Museum and Court House renewals.
All three options require a further $1.2 million in savings (cumulative) and borrowings for asset renewals. The proposed borrowing is $7.6 million under Option 1 or $4.6 million under Options 2 and 3, repaid over 20 years.
Mayor Weston said each option also proposes freezing the base rate component for two years to improve distributive equity which will help with affordability concerns.
"Council understands that some residents may need support so, together with proposing to freeze the base rate and only applying the increase to the general rate, we have also improved our Hardship Policy to help where there is genuine need. Council will also continue its Pensioner Rebate scheme, of course."
Residents can compare the SRV options and use the online rates calculator to estimate the impact on their property at haveyoursay.leeton.nsw.gov.au. An SRV would apply to general rates income, not water, sewer or waste charges.
Consultation closes at 11.59pm on Tuesday, 27 October 2026. Residents can complete the online survey
