Concerns Orange may miss out on full benefits of rates changes

That's the view of the head of Orange City Council's finance policy committee, Cr Kevin Duffy.

The Independent Pricing and Regulatory Tribunal is reviewing the current system for setting council rates revenue, the rate pegging system, to include population growth.

It says population growth brings extra costs to councils who have to provide more facilities and services to meet the increased demand.

Cr Duffy said while he supported having a review he was concerned the growth rates of councils in major Sydney and other cities exceeded Orange which would not gain its share of extra revenue.

"I think the review is necessary," he said.

"But if it ain't broke, don't fix it. I'm in favour of the capping."

Cr Duffy said it helped ensure councils did not raise rates substantially to 'build some monstrosity' which the ratepayers were left having to pay for.

"I like the system the way it is."

Cr Duffy said Orange was 'not in the league' of some of the larger Sydney councils with population growth.

IPART is seeking feedback on its draft report into the planned changes with submissions accepted until August 6.

It will also conduct a public hearing on July 20.

A final report will be presented to the Local Government minister Shelley Hancock in September.

Acting IPART Chair Deborah Cope said when councils' populations grew their costs increased at about the same rate.

"We have looked at a way of incorporating population growth into the rate peg that balances the need to ensure councils are financially sustainable, while protecting ratepayers from excessive rate rises," she said.

"The methodology we have proposed will ensure councils maintain their rates income on a per capita basis as their population grows.

"This will enable councils to provide services to their growing communities."

Ms Cope said had the scheme been in operation over the past four years local government would have received about $116 million more income.

The draft report said it would have increased revenue for 96 out of the state's 129 local councils.

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