Council
9 April, 2026
Council plan: massive rise in rates, water and sewer fees.
Wingecarribee Shire Council is proposing a sweeping overhaul of its finances, with significant increases to rates, water and sewer charges
Wingecarribee Shire Council is proposing a sweeping overhaul of its finances, with significant increases to rates, water and sewer charges, expanded user fees and a long-term borrowing program outlined in documents to be considered by councillors next Wednesday.
The draft budget, long-term financial plan and asset strategy reveal a council grappling with a structural operating deficit, ageing infrastructure and rising costs, and moving toward a model that shifts more of the burden onto ratepayers and service users.
Despite acknowledging the challenges including a structural deficit, council claims they are ‘not bankrupt, insolvent or broke’.
At the centre of the proposal is a Special Rate Variation (SRV), which would increase general rate income by approximately 34 per cent over three years from 2027/28. The increases are modelled at 11.9 per cent in each of the first two years and 7.35 per cent in the third year, including the rate peg.
This represents additional increases of about 8 per cent in the first two years and 3.4 per cent in the third year above the assumed rate peg of 3.9 per cent.
Council says the increase is required because general rates remain the primary funding source for the General Fund and are not generating sufficient revenue to maintain infrastructure and services over time.
The documents set out two financial paths: a base case, where rates remain capped at the rate peg, and a “Sustainable Assets and Services” scenario, which includes the SRV and borrowings and has been identified as the preferred option.
Under the base case, council warns it would not be able to fund necessary asset renewal, leading to deferred maintenance, declining service levels and increased long-term costs.
In contrast, the preferred scenario would allow an additional $6.6 million per year to be invested in asset renewal and deliver approximately $100 million in additional infrastructure investment over 10 years.
Council is responsible for an asset base valued at around $3.3 billion, including $2.8 billion in infrastructure such as roads, bridges, buildings, water and sewer networks. The documents acknowledge that parts of this network are ageing and that historic investment has not kept pace with deterioration, resulting in a growing backlog of renewal works.
Water and sewer charges are also set to rise significantly under the long-term plan.
Water access charges are proposed to increase by 15 per cent per year for three years, while water consumption charges would rise by 26 per cent per year over the same period. Sewerage access, sewerage usage and trade waste charges are each set to increase by 8.5 per cent per year for three years.
Council says these increases are necessary to fund major upgrades to water and sewer infrastructure, including around $140 million in new or upgraded water assets, and to ensure the services operate on a full cost recovery basis rather than being subsidised by general rates.
Despite these measures, council is forecasting a net operating deficit of $5.3 million excluding capital revenue, highlighting ongoing financial pressure.
The plan also relies on borrowings to fund major infrastructure, with council arguing this supports intergenerational equity by spreading the cost of long-life assets across current and future residents.
Council is also working to increase its unrestricted cash reserves, with a target of building its working capital fund toward $20 million to improve financial resilience.
External risks are also identified, including rising fuel and construction costs, which could add an estimated $3.8 million to operating costs and $5.4 million to capital projects if pressures continue.
Changes to Australia’s payments system are also expected to cost council around $60,000 from 2026 if card surcharges can no longer be passed on to users.
Council says the package of measures is designed to improve long-term financial sustainability, maintain service delivery and address infrastructure backlogs, but acknowledges the approach will increase costs for residents.
If endorsed, the draft plans will go on public exhibition for 28 days from 17 April to 15 May, with submissions invited before a final decision is made.
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