23 May, 2023
Utilities charges increase for 2023/24
At the April council meeting, several increases to the
charging rates for the water supply, sewer and waste
management services were approved by council for the
2023/24 rating year.
For these services and utilities, the council has a
two-part charging structure of an access charge and
For the upcoming 2023/34 rating year
these charges will remain in place.
In the previous rating year of 2022/23, the council
received an estimated revenue of $1,369,488 from the
Gilgandra water supply service.
For the upcoming rating
period it is proposed by council that the access
charge and usage charge will both be raised by five per
cent to bring in an estimated revenue of $1,396,229 for
2023/24. This is an increase of $26,741 from 2022/23.
The increase is to “achieve the required income
under council’s 30-year plan for water and infrastructure
and operating costs”.
When it comes to the base amount charged and
increases in charges of rates for water supply and sewerage,
this is outlined in the council’s water supply asset
In this plan, the implementation of
the charges and the pricing are based on best practice
“The best practice guidelines set out for the water
pricing principles for customers are as follows:
• Pricing must raise enough revenue so that the water
supply fund achieves a positive Economic Real Rate of
Return (ERRR) in most years over the next 30 years.
• Residential water usage charges must be set to
recover at least 75 per cent of residential revenue.
• Access charges are to be based on the square of the
diameter of the water service connection.
• Local Water Utilities (LWUs) must bill at least
three times each year (and preferably every quarter).
• No land value based charges (i.e. rates)
• No “free” or “pre-paid” water allowance.”
The Tooraweenah water supply service will also see
an increase of five per cent from the previous rating
year. In 2022/23 the total estimated revenue for the service
was $32,881. In the upcoming year it is estimated
to be $34, 081; an increase of $1015.
According to the council meeting minutes, “water
usage is a variable factor and water income will increase
more if water usage increases” and “the water usage
charge is based on production costs and any variation
from the estimate will be compensated for by respective
increased or decreased production costs”.
In conjunction to the rises in the charging rates for
water supply, the sewer charge is also being increased.
It was approved that a seven per cent increase be implemented
for both the usage and access charges.
The implementation of a seven per cent increase will
see an estimated revenue jump of $110, 679 for the
2023/24 rating year.
Storm water charges in Gilgandra for 2023/24 will
remain the same however, with the $25 assessment
charge carrying over.
This is the same for the rural waste charges with the
current charge of $22 per assessment being used for
2023/24. The charges for domestic waste services and
other waste services will be increased compared to the
previous year. Both services will receive a two per cent
increase compared to the 2022/23 rating year.
For the domestic waste service this will raise an estimated $526, 992 in income for the 2023/23 year, while other waste services will raise $127, 032. All charges raised “will not exceed the reasonable cost of providing such services” according to the council.