Armidale ratepayer William Morton says a land rate hike of 50 per cent would drive newcomers away and force locals deeper into poverty.
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"We're not a rich area," Mr Morton said.
"For a lot of people, that rise is going to increase rent, and commercial rent, which is going to make a big difference to a lot of small businesses in town.
"It's not going to attract extra people into the district, it's going to drive people away."
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Mr Morton was one of about 300 people who packed into Armidale Town Hall on Tuesday to hear the Armidale Regional Council's (ARC) explanation for their proposed permanent land rate hike of 50 per cent over three years.
There were tense exchanges as council representatives were asked about issues including spending at the airport, and funding following the amalgamation of Armidale and Guyra councils.
The rate hike would apply to the base rate of a property and land value, which appears at the top two lines on a rates' notice.
ARC general manager James Roncon said analysis and number crunching statistics have shown there would be a $10.1m shortfall in revenue per year without the rate hike.
"In four years time that will look like; we wake up, we've got no cash left, we've fallen off the edge of a cliff and we're in all sorts of trouble," Mr Roncon said.
![Tension in town hall as council meets locals over rate rise Tension in town hall as council meets locals over rate rise](/images/transform/v1/crop/frm/184392265/2580feb1-e849-4d7c-ba2d-3319e8633d36.JPG/r0_246_4928_3018_w1200_h678_fmax.jpg)
The extra money generated from the rate hike is expected to improve or renew infrastructure across the region in areas such as roads, bridges, footpaths, sporting facilities and playgrounds.
The council also has plans to increase the combined Guyra and Armidale region by 10,000 people beyond the approximately combined 29,000 population.
They expect to do this by creating about 4000 "engine room jobs", and building about 5000 new homes.
Council's chief town planner Dan Boyce outlined Mayor Sam Coupland's jobs' strategy, saying those "engine room jobs" have a multiplier effect of creating 2.5 positions on average.
"As the mayor said, 'you don't target teaching jobs, nurses, GPs, you grow the engine industry', so you get the logistics jobs," Mr Boyce said during the meeting.
Cr Coupland said locals would not have to pay more under the proposed rate hike if more people moved to the region, saying extra properties meant existing ratepayers would pay less under the scheme.
"Increases in population don't grow that pool," Cr Coupland said in response to an audience member's questions. "The increase in population will just reduce the individual burden."
An additional 10,000 people, coupled with temporary workers building solar, hydro and wind farms as part of the state government's Renewable Economic Zone (REZ), would also put additional pressure on already strained services such as access to health and housing.
But Cr Coupland couldn't give any assurances that the state government would be in a better position to provide the additional nurses, doctors and teachers in future years.
Council representatives, the mayor, general manager, chief town planner Dan Boyce and Director of Assets Alex Manners took questions after the presentation.
A small group of attendees told the Express after the meeting they didn't ask questions because they thought council representatives were going "around in circles", and not giving people definite or clear answers.
One question that was asked of the ARC representatives queried if there were going to be any incentives such as rate reductions to encourage manufacturers to the region.
Mr Boyce replied, saying anybody wanting to set-up industry in the region was attracted by "certainty in the planning process", and that they'd be given a "Rolls Royce service" if they do.
Cr Coupland responded to another audience member's questions, saying people will move to Armidale if it is made a more attractive place to live.
The council had further community consultations arranged in Guyra Bowling Club at 6pm on Wednesday, September 14 and Woolombombi Sauer Memorial Hall at 6pm on Thursday, September 15.
The council's proposal for a Special Rate Variation of 50 per cent over three years to 2026 will then go to the Independent Pricing And Regulatory Tribunal (IPART) for approval.
By the year 2026, that would give the council an additional $30.3m to spend on bridging the current "infrastructure renewal funding gaps of $6.9m per year".
An extra $3.2m per year would go towards "operational service delivery".
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