At Wednesday's council meeting councillors and staff debated whether Yass residents should pay extra rates to subsidise the Murrumbateman Water Supply and Sewerage project in the coming financial year.
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This subsidy equates to $1.87 million being 23 per cent of the total estimated cost of $8.15 Million, the remaining costs will be funded under the NSW Government Country Towns Water Supply and Sewerage Scheme.
Councillors presented three concerns to the project including, ratepayers having to pay for a service before they are able to access it, residents of Yass having to help subsidise a service they are unable to use and whether ratepayers are aware of the increase in rates and time of service.
Councillor Michael McManus clarified that there will be 105 residents able to access the scheme, not all of Murrumbateman, just the village.
“We are asking those 105 to commence paying in July, just like when you build a house, you start paying when you pour the slab. You don’t only start paying when you move in,” Cr McManus said.
“Yass residents are not being asked to have their rates increased for the project, rather will be borrowing money from the Yass Sewerage Scheme reserves.
“That is a prudent business vision. There is no additional costs to the town of Yass, its the reserves that will be drawn down.”
As part of the Local Government Act 1993, Council may levy rates for a service which is proposed to be provided and in this case does not necessarily have to wait until construction of the scheme is completed to commence levying sewerage rates.
Councillor Ann Daniel suggested communication be clearer to residents.
“If they [resident] refuse to pay the rates we will have to postpone it,” Cr Daniel said.
General Manager David Rowe said there is really not an option of delaying the scheme, however suggested that council invite all the prospective ratepayers to be informed of further communication.
“If you don't put the rates in, there will be more cross subsidy for Yass,” Rowe said.
Director of Engineering Gary Chapman reiterated that timing was of the essence and if the increase in rates was not in place by the 2015 financial year, there would be a significant rise in rates to help levy the future debt.
Council confirmed the proposed incentives to be provided for the early connection to the Murrumbateman Sewerage Scheme and that sewerage rates be levied on properties within Murrumbateman village from July 1, with the amount to be equivalent to the Yass sewerage rate.
Pick up Wednesday's Yass Tribune for more council news.