Clarence Valley Council Embraces New Rate Peg Methodology Set by IPART

By Jeff Gibbs

Patients and staff at Murwillumbah

District

Hospital are reaping the rewards of extensive upgrades, courtesy of a comprehensive renovation project nearing $2 million in completion. The Minister for Regional Health, Ryan Park, highlighted the signifcance of these improvements, emphasizing the transformative impact on the hospital’s facilities.

The renovation initiatives primarily focused on enhancing critical areas within the hospital, including the emergency department’s triage zone and reception, the medical imaging reception, and the palliative care room. Minister Park emphasized the paramount importance of these upgrades, elucidating how they ease accessibility for patients and streamline the hospital’s operations.

“Transforming the emergency department means that anyone seeking urgent care will encounter a far more navigable and accessible environment, signifcantly benefting our local community,” stated Minister Park. The renovations also extend to the medical imaging department, fostering a more conducive atmosphere for both patients and staff, facilitating smoother patient fow while creating an inviting ambiance.

Furthermore, the upgrades prioritize inclusivity, rendering the emergency department and medical imaging areas more accessible for individuals with disabilities, thereby promoting equitable healthcare access for all.

The signifcant investment underscores a dedication to the hospital’s future, recognizing its pivotal role in delivering exemplary patientcentred care, an aspect deeply cherished by the local community. Member for Lismore, Janelle Saffn, echoed these sentiments, particularly highlighting the renovated palliative care room as a testament to the hospital’s commitment to patient comfort and support.

“The revamped palliative care room has been crafted as a serene sanctuary, designed to ensure patients, their families, and carers experience comfort and solace within the hospital’s walls,” expressed Ms. Saffn. Notably, the space has been tailored to encourage connection and tranquillity, boasting scenic views of the picturesque Tweed valley.

The annual determination of the rate peg by the Independent Pricing and Regulatory Tribunal (IPART) holds signifcant weight for councils across New South Wales, shaping their fnancial framework for the upcoming fscal year. This year, IPART introduced a new rate peg methodology for the 2024/2025 fnancial year, considering several key factors in its calculation.

The novel rate peg methodology, structured by IPART, takes into careful consideration multiple components.

It amalgamates the Base Cost Change, encapsulating alterations in employee, asset, and operating costs, along with a population factor derived from past demographic changes. Additionally, an Emergency Services Levy factor and a catch-up adjustment for variations in the superannuation guarantee rate were factored into the deliberation.

The resultant rate peg across NSW for the upcoming fnancial year, after integrating the population factor, spans from 4.5% to 8.2%, with the Base Cost Change accounting for 3.9% of this range.

For the Clarence Valley Local Government Area (LGA), IPART has set a rate peg of 4.7%, comprising a 3.9% Base Cost Change, with 0.2% attributed to Population Growth and 0.4% allocated for the Superannuation adjustment.

This determination by IPART will steer the formulation of the 2024/2025 draft Budget by the Council’s staff. Scheduled for consideration by the Council in early 2024, the draft Budget will subsequently undergo a public exhibition period. The Council will then wield the prerogative in fnalizing the budgets, including the determination of the rate peg for the forthcoming fnancial year.

Laura Black, the General Manager of Clarence Valley Council, expressed her contentment with IPART’s adoption of the new methodology, emphasizing its alignment with the augmented costs borne by the Council to uphold the anticipated service standards and facilities within the community.

“While acknowledging the fnancial strains some ratepayers might face, compromising on service provisions or scaling down service levels below community expectations is not a sustainable option,” remarked Laura Black. She emphasized the Council’s intent to base their draft plans on the full rate peg allowed, affrming that the ultimate decision on applying the rate peg lies with the Council during their deliberations on the 2024/2025 Operational Plan.

The introduction of the new rate peg methodology signifes a concerted effort to navigate the fscal landscape in a manner that aligns with the Council’s commitment to delivering essential services while balancing the fscal responsibilities toward the community.