Special rate variation for infrastructure

Improving our roads

Ku-ring-gai Council submitted an application to the NSW State Government’s Independent Pricing and Regulatory Tribunal (IPART) for the continuation of the existing Infrastructure - Special Rate Variation (SRV).  Council’s application was assessed by IPART who approved the Infrastructure – SRV to be permanently retained in the rate base.

What is the Infrastructure – Special Rate Variation?

The Infrastructure - SRV funds improvements to Council’s road network. It contributes to renewing the roads that have been identified in a poor condition.
The Infrastructure – SRV, which is identified on the rates notices, costs the average rate paying household approximately $64 per annum (SRV divided by the total number of ratepayers). The Infrastructure - SRV has been in place since 2001.
The Infrastructure - SRV will contribute approximately $2.7million each year (current prices) to our total annual roads budget. It accounts for 5% of the total rate income.

Why do we need to continue the Infrastructure - Special Rate Variation?

Ku-ring-gai needs to improve the condition of our roads. The Infrastructure - SRV boosts our roads budget by $2.7 million each year, ensuring important road renewal works are undertaken and our roads improve over time. There is a funding shortfall for our roads and the revenue Council receives from rates is not enough to cover the investment required to improve our road network.
To reduce this funding shortfall Council implemented a range of initiatives to redirect funding to roads and other assets. These include:
• A rates restructure to provide an extra $36 million over the next 20 years
• Operating efficiencies to redirect $18 million over 10 years
• Redirecting funds from lower priority assets and services into our roads
Even with this additional funding, Council still requires the Infrastructure - SRV to fund the shortfall.

Council roads

Ku-ring-gai has a vast network of roads. Since the introduction of the Infrastructure - SRV in 2001, we have seen ongoing improvement to the condition of our roads. Despite these improvements, a recent assessment has determined that 56% of our roads are still in a ‘poor’ condition.
The priority for Council’s roads program is to continue renewing our ‘poor’ roads bringing them into a ‘good’ condition. In addition to this, we must continue the work already started and maintain the quality of our roads in a ‘good’ condition.
View the roads funded by the Special Rate Variation (pdf. 100KB) and identified in the four Delivery Program.

More information

Deborah Silva
Manager Integrated Planning, Property & Assets
Phone: 9424 0000
Email: dsilva@kmc.nsw.gov.au