Steep rate rises among options to pull Coober Pedy Council out of $7.5 million debt

Residents of Coober Pedy may face annual rate rises of up to 10 per cent to help drag their troubled council out of its $7.5 million debt.

Coober Pedy Mayor Les Hoad and acting chief executive Colin Pitman. Picture: Tricia Watkinson

• Administrator takes over troubled Coober Pedy District Council
• Auditor General: Coober Pedy Council has ‘unsustainable’ debt

Residents of Coober Pedy may face annual rate rises of up to 10 per cent to help drag their troubled-plagued council out of its $7.5 million debt.

The embattled opal town council was suspended last week and Tim Jackson, former chief executive of Playford Council, given the job as administrator to try to balance the books.

Les Hoad, elected mayor in November, said one accountant’s suggestion was a string of rate rises — about 10 per cent for the first three years.

By gradually reducing the percentage rises from then on, the council could get back in the black within seven or eight years, Mr Hoad said.

“The rates have definitely got to go up — water rates as well as council rates,” he said.

“Of course there was going to be a big uproar here in Coober Pedy and the councillors didn’t want to put their name on it.

“I was in favour of rate rises but perhaps not that much.”

The council owns the town’s airport, operates its water and sewerage services and distributes power to locals, but has only about 1500 ratepayers to help shoulder those costs.

Mr Hoad said following the November local government elections, one of the council’s first tasks was addressing debt.

“They wouldn’t agree on any scenario, even putting an expression of interest out there for people to buy the water or power (services),” Mr Hoad said.

“(But) 10 weeks isn’t really enough — my feet hadn’t hit the blooming ground.”

Local Government Minister Stephan Knoll on Thursday announced Governor Hieu Van Le had followed his recommendation to appoint an administrator, following a July 2018 Ombudsman’s report that found “serious failings and irregularities” at the council.

The council was suspended, and another proclamation will be made within 12 months to either reinstate it or replace elected members through another election.

Coober Pedy Council’s acting chief executive Colin Pitman, appointed in April, will continue his role while elected members are suspended.

“This allows an administrator to sort out the finances without the political overtones that apply to a council,” Mr Pitman said.

Coober Pedy’s water and sewerage systems also needed major overhauls, Mr Pitman said.

“It’s my task to get that matter resolved as well, but before it was with the concurrence of the mayor and eight elected members — now it’s only one person.”

Mr Pitman said other options to reduce debt included selling assets and contracting out some council services to the private sector.

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