Street lighting charges rise

Gosford Council will be expected to pay $663,270 more per annum on street lighting and maintenance within the Gosford LGA after the Australian Energy Regulator has decided to increase street lighting pricing 53.4 per cent over the next four years.

The increase will see council pay a total of $663,270 within the next financial year and that will increase 1.9 per cent, 2.3 per cent and 2.3 per cent respectively in each of the following financial years.

Cr Craig Doyle said the decision was "outrageous" and it would be ratepayers who would felt the impact.

"I can't believe we haven't heard anything about this decision earlier," Mr Doyle said at a council meeting on May 4.

"Council is really going to feel the impact of this one and eventually it will be the community who suffer when council's budget is being restricted by this outrageous increase."

Gosford mayor Cr Chris Holstein agreed and said up to half of the rate peg rise of 2.6 per cent would now be "wiped out" as a result of the increase in street lighting charges to council.

"This will cause a huge financial cost to council," Cr Holstein said.

Greens Party member Cr Freewater said this might be a good opportunity for council to seriously consider introducing solar panel lighting to street lighting within the Local Government Area.

"Perhaps the time has come for council to move towards green power," Cr Freewater said.

"With a report still to come to council on Cr Latella's request to install solar panel street lighting, it will be interesting to see what the recommendation will be."

Gosford Council resolved to write to the State Government raising its concerns on the Australian Energy Regulator's decision to increase street lighting pricing for the next four years.

Council also resolved to send a motion to this year's Local Government and Shires Association requesting an intervention for relief for local councils from the impact of the increased costs of street lighting.

Gosford Council's street lighting network comprise of more than 10,800 lights.

According to a council report, council allocated $1.47 million for street lighting charges for its draft 2010/11 budget.

This figure was based on council's 2009/10 recurrent budget allocation to street lighting of $2.069 million.

Council has stated that a total street lighting budget item for 2010/11 of $2.732 million would be necessary to cover the price increase of $663,270 in lighting capital and maintenance charges.

The report stated that a decision on funding the price increase would be deferred until additional information is available from the Street Lighting Improvement program.

However, it was suggested in the report that the price increase be covered through a reduced level of service to one or more recurrent budget items or to reduce the allocation to one or more capital expenditure items.

Another option outlined in the report was to seek an extraordinary rate increase in 2011/12 through the Minister for Local Government to cover the price increase, however an adjustment to the 2010/2011 recurrent budget would also be required to cover the increased cost for that year.

Clare Graham, 4 May 2010 Council agenda CIT.24, 4 May 2010