RICHMOND Valley Council is consulting with the community on a proposal to fund ongoing stormwater work following a comprehensive review which found a Special Rate Variation was the only available way to adequately fund the service levels required.
The Stormwater Service Review found current funding was insufficient to maintain and renew existing infrastructure, undertake network-wide inspections and proactive maintenance, and deliver future drainage improvements. Council’s stormwater assets are valued at $78m with the review finding that required upgrades are estimated at $1.3m per annum.
Council currently collects about $209,000 a year through its Stormwater Management Service Charge. For residential properties, the charge has remained at $25 a year since 2006 and cannot be increased under the existing regulatory framework. Despite ongoing advocacy to the NSW Government for more than a decade, this charge has not been indexed.
Council resolved to allocate an additional $500,000 a year from general revenue in 2025-26 and 2026-27 to help address the stormwater infrastructure backlog, but the review found this was not a sustainable long-term funding solution.
The recent $2 million Illawong Lane drainage project at Evans Head demonstrates the level of investment required to improve drainage capacity to reduce instances of inundation of properties in the Evans Head CBD. With the existing stormwater charge unable to fund a project of this scale, Council had to borrow $1.6m to complete the essential work.
General Manager Vaughan Macdonald said stormwater and drainage improvements were regularly raised by residents, and Council wanted the community to have a say in how these services are funded.
“The review has confirmed our existing funding is not sufficient to provide the level of stormwater and drainage service our community is asking for,” Mr Macdonald said.
“Council has resolved to engage with the community on a new funding option so ratepayers can understand what it would cost, what could be delivered and provide their feedback before Council makes a decision.”
Under the proposal, the existing $25 stormwater charge would be replaced by a dedicated stormwater rate for urban properties which use or benefit from Council’s stormwater network. The new Special Rate would be based on land value, subject to a minimum charge proposed to be $85. Council would calculate the land value amount using the ad valorem and compare it with the minimum charge and the ratepayer would pay whichever amount is higher. This methodology is required under the NSW rating system for a Special Rate.
The average residential ratepayer would pay an estimated $82 more a year, while the average business would pay $68 less. Rural residential and farmland properties would continue to not pay the new stormwater Special Rate as they do not benefit from stormwater drainage infrastructure. It would raise about $708,208 in its first year, increasing over four years to provide about $843,231 a year for stormwater drainage works .
Mr Macdonald said Council understands the financial pressures facing households and businesses.
“The modelling shows the proposal will affect residential and business ratepayers differently, which is why it is important the community understands what is being proposed and has the opportunity to provide feedback before Council makes a final decision,” Mr Macdonald said.
“We can’t wait any longer for the NSW Government to increase the stormwater management annual charge above $25, we need to secure the funding required to improve our stormwater infrastructure while keeping costs manageable for ratepayers.”
Without additional ongoing funding, Council would need to continue funding priority stormwater drainage works from general revenue or through borrowing, reducing its capacity to fund other Council services and infrastructure, or limit the amount of stormwater renewal and improvement work it can undertake.
Council will now consult with the community on the new stormwater management annual charge, with the results to be reported back to Council in November 2026 before a decision is made to lodge an intent to apply with IPART, with the application due in February 2027 with IPART making decisions in June next year.
To find more information on this proposal, visit Council’s dedicated page at richmondvalley.nsw.gov.au/stormwater