Your Questions Answered

Developer contributions are set through formal Infrastructure Contributions Plans that are reviewed and updated over time. These plans are based on information available at the time, including growth forecasts, infrastructure requirements, cost estimates and the legislative framework in place. This includes detailed planning, growth forecasts and financial modelling. They cannot be increased whenever construction costs rise or financial pressures emerge.

The contributions help fund infrastructure needed as a result of new development, including roads, drainage, footpaths, parks, sporting facilities and community infrastructure. They cannot be used to fund Council's day-to-day operating costs. Their purpose is to help ensure that growth contributes to the infrastructure it requires, reducing the burden on existing ratepayers.

Over recent years, the cost of delivering infrastructure such as roads, drainage, open space and community facilities has increased significantly. At the same time, councils must operate within state government rules and contribution frameworks, including contribution caps in certain circumstances. As a result, there can be a growing gap between the actual cost of infrastructure and the amount that can be recovered through developer contributions.

Under Albury's Interim Infrastructure Contributions Plan 2025, the contribution rate for new residential lots is already set at the current IPART cap of $20,000 per lot. This means Council is collecting the maximum contribution currently permitted under the existing framework, even if the actual cost of providing infrastructure to support growth is higher.

One of the challenges currently facing growing regional councils is that state-imposed caps can mean the contributions collected are less than the actual cost of delivering the infrastructure needed to support new development. Where that occurs, the shortfall must ultimately be funded through a combination of grants, borrowings, general revenue or contributions from the broader community.

Council is now undertaking further planning and modelling to prepare a new Local Infrastructure Contributions Plan. Early indications suggest the true cost of providing growth-related infrastructure may exceed the current cap. If that is confirmed, Council would need to apply to IPART for approval before any higher contribution rate could be considered.

Council carefully considered a range of communication and engagement methods, including a city-wide letterbox drop. However, with costs estimated at almost $35,000, Council determined that a more cost-effective approach was to include information about the proposed Special Rate Variation with the July rates notices sent to all ratepayers. The community has asked Council to look inside at ways to save money and this is one of the ways a saving could be achieved, while still ensuring every ratepayer in Albury received the information and link to the survey.

Council has also shared information through local media, newspaper public notices, social media, Council's website, newsletters, community information sessions, and displays and printed materials available at Council facilities across the city.

We recognise that not everyone accesses information in the same way, which is why a range of communication channels has been used throughout the consultation period.

AlburyCity bought a parcel of vacant land east of the Hume Highway at Ettamogah, known as Maryvale. It was not purchased to house a DataCentre.

The land will enable the construction of an additional wastewater treatment plant north of the city to cater for the growth of Thurgoona-Wirlinga. Funding for the purchase was provided for in Council’s Wastewater (Sewer) Fund current cash reserves specifically for this purpose.  For clarity, the sewer funds cash reserves, are not part of the area of Council that is consulting about increasing rates.

Council’s finances are managed through three separate funds: general, water and sewer. Under the Local Government Act, income raised for water and sewer services must be used for those services and cannot be transferred to the general fund.

The current budget deficit exists within the general fund, which supports Council’s day-to-day operations and services, including roads, parks, libraries, community facilities, waste management, and other community services.

While the water and sewer funds may be in a stronger financial position, legislation prevents those funds from being used to cover costs or shortfalls in the general fund. As a result, Council must address the deficit using measures available within the general fund itself.  It is also worth nothing that while the water & sewer funds are currently in a stronger position, significant infrastructure spending is required in these areas in the coming 10 years.

When council rates are levied:

• The council records the rate revenue in its budget and financial statements
• The revenue is recognised because the council has a legal entitlement to collect the rates.
• The budget result therefore already includes the full amount of rates raised, even if some ratepayers have not yet paid.

The Outstanding Rates and Charges ratio is one of a number of financial performance ratios and industry benchmarks that is included in Council’s audited financial statements. This ratio assesses the impact of uncollected rates on a council's cash flow, but uncollected rates do not affect councils bottom line budget (for reasons explained in above points).

The industry benchmark for the Outstanding Rates and Charges ratio is < 10%. In the most recent audited financial statements of 2024/25 AlburyCity across all funds combined did not meet this benchmark (with a ratio of 12%). However, the majority of the outstanding balance relates to the third water bill issued in 2024/25 that is not payable until after the end of the financial year which while outstanding on 30 June 2025, is not ‘overdue’.

The General Fund outstanding percentage on its own remains below 5%, significantly below the industry benchmark of <10% and this has consistently been the case for a number of years.

The ratio is also proxy measure for the community's financial stress or willingness to pay.

AlburyCity's current financial position has developed over time as our city has grown and invested in important community infrastructure, including cultural, sporting and economic facilities that support a vibrant and growing regional centre.

While these investments have delivered significant benefits for our community, they have also increased the cost of maintaining and renewing Council's assets.

Like many councils across NSW, AlburyCity is experiencing rising costs for construction, maintenance, materials and service delivery. These increases have been much higher than the annual rate peg, particularly during recent periods of high inflation.

As Albury grows, more infrastructure needs to be maintained and renewed. Over time, the gap between costs and income has increased.

It's a bit like managing a household budget. Even when you're careful with spending, rising costs and ongoing maintenance can create pressure over time. Delaying repairs might reduce costs today but it often leads to bigger bills later.

That's why Council is discussing long-term financial sustainability now. It is facing a growing deficit and increased reliance on debt that is not sustainable long-term. Work has begun to reduce the deficit, with more than $10 million already shaved off the original figures, with more work to be done.

AlburyCity is not alone. Over the past five years, 46 NSW councils have applied for a Special Rate Variation to help address similar financial sustainability challenges.

No. The Special Rate Variation proposal (if supported by Council to apply to the Independent Pricing and Regulatory Tribunal (IPART)) refers to commencing 2027/2028, not 2026/27.

We’re currently consulting with the community on three possible options commencing in 2027/28:

• Option 1: Rate peg only – YR1: 3.6%, YR2: 3.6% YR 3: 3.6%

• Option 2: 40% increase phased over three years – YR 1: 14% YR2: 13% YR 3: 13%

• Option 3: 42% increase phased over two years – YR 1: 21%, YR 2: 21%, YR 3: 3.6%

The options represent scenarios currently being considered – no decision has been made. The final outcome depends on a successful application to IPART to raise rates above the rate peg and the percentage increase could change depending upon all of the other factors Council must consider.

The impact on individual ratepayers will vary depending on the option adopted by Council, your property’s land value and your rating category. Based on an average residential property, the increase could be between $60 and $300 in the first year.

Please check how the proposed rate increase will impact you by checking the rates calculator. AlburyCity - SRV Impact Calculator

Council cannot charge rates above the annual rate peg unless it is approved by IPART. That is, IPART are the only body that can make the decision on whether or not to approve a SRV for Albury.

Council still need to determine whether or not to apply to IPART for a SRV. Before making any decision, Council will consider community feedback, its financial position following the 2025/26 financial year and the results of other ongoing financial sustainability measures. Any application to increase rates above the rate peg would then need to be independently assessed by IPART.

Over the past 12 months, AlburyCity has delivered financial improvements through efficiency gains, reviews and long-term planning. Additional financial sustainability measures are currently being considered and will be reported to Council.

The proposed SRV is not the first step. It's part of a broader process that includes:

• Service reviews
• Efficiency improvements
• Independent financial analysis
• Property strategy development
• Review of funding opportunities

About $1.6 million in ongoing savings have already been built into the budget and this work continues. A report will be presented to Council at its next meeting proposing another $3 million in ongoing savings.

It's not that simple.

Council provides hundreds of services and maintains a wide range of community assets. While reducing spending in some areas may be possible, broad reductions can have flow-on effects for the services and infrastructure people use every day.

A blanket cut would affect:

• Road maintenance and renewal
• Parks and playgrounds
• Libraries and community facilities
• Community programs and services
• Water and wastewater services

Some costs are essential to keep services running safely, some are required by legislation while others help maintain important community infrastructure.

In some cases, Council investment also helps secure external funding. Reducing spending in these areas could limit eligibility for grants and funding programs, which may result in higher costs for Council and the community over time.

That's why this consultation is about understanding community priorities and helping inform how we balance services, infrastructure and affordability into the future.

Annual rate increases are set by the NSW rate peg which is 3.6% for 2026/27. A Special Rate Variation (SRV) is an increase to Council rates above the annual rate peg set by the NSW Independent Pricing and Regulatory Tribunal (IPART).There are several steps before any Special Rate Variation can be approved.

Community consultation is the first step in the process, ensuring community feedback is considered before Council decides whether to proceed with a Special Rate Variation application.

If it decides to proceed, it then has to publicly exhibit amended IP&R documents and then submit an application to IPART by the deadline, usually the start of February.

If Council decides to apply, the community will have another opportunity to provide feedback directly to IPART on Council's endorsed SRV proposal. IPART then conducts its own independent assessment before making a final decision.

This means any SRV proposal is subject to both local community consultation and independent review before it can be approved.

The SRV scenarios that are the subject of community consultation are for a permanent SRV to be a part of Council’s ongoing rate base. This means the additional income continues into future years and grows in line with future rate peg increases approved by the Independent Pricing and Regulatory Tribunal (IPART).

A temporary SRV increases rates for a set period of time, after which rates return to the level they would otherwise have been under the annual rate peg. While this can provide short-term financial relief, the additional income is not ongoing.

While a temporary SRV may help address immediate financial pressures, it does not provide a long-term solution to structural budget challenges. Once the temporary increase expires, Council's income reduces, which can result in the same financial issues re-emerging unless services are reduced or alternative revenue sources are found.

A permanent SRV provides greater financial stability and certainty, allowing Council to plan for the long term, maintain service levels, invest in infrastructure, and respond to rising costs over time. For this reason, a permanent SRV is generally considered more effective for addressing ongoing financial sustainability challenges than a temporary increase.

So far, Council has been undertaking reviews to find savings that have little or no impact on services. A report going to an upcoming council meeting will outline some additional options to find savings that will have some impact services. These could include reducing opening hours at council facilities or ceasing on-core activities.

Any additional income generated through an approved SRV would help Council maintain and renew the infrastructure and services our community relies on every day, including:

• Roads and footpaths
• Parks and playgrounds
• Community facilities
• Stormwater infrastructure
• Public spaces and amenities
• Services that support our growing community

If Council doesn’t proceed with an SRV or doesn’t get approval from IPART, then further service reductions are likely.

Changes in your rates from one year to the next are not always due to changes in Council's rates. One of the main factors that can affect individual rate notices is a change in your property's land value, which is determined independently by the NSW Valuer General.

Council uses these land valuations to calculate how rates are distributed across properties. If your property's land value has increased by more than the average increase across the Local Government Area, your rates may increase. Conversely, if your property's land value has increased by less than the average, your rates may decrease or increase by a smaller amount.

It's important to note that Council does not determine land values and does not receive additional revenue simply because property values increase. The total amount of rate income Council can collect is regulated, and changes in land values primarily affect how that amount is shared between ratepayers.