Budget 2019: Furious SA mayors tee off at shock waste cost hike

South Australian councils are hastily revising their budgets to include higher rate increases after being blindsided by a huge rubbish tax hike in the State Budget.

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Councils across South Australia blindsided by a huge rubbish tax hike are hastily revising their budgets to include higher rate increases.

Mayors are furious with Treasurer Rob Lucas for not alerting them about the 40 per cent increase in the Solid Waste Levy before they drafted their annual business plans.

Many councils were set to approve their budgets next week but are now examining a range of last-minute changes, including higher rate increases, cancellation of proposed projects and cuts to services.

The total impact of the Solid Waste Levy — announced without warning in the State Budget — is still being calculated by the state’s 67 metropolitan and regional councils.

Early estimates show councils such as Onkaparinga, Charles Sturt, Port Adelaide Enfield, Salisbury, Playford and Marion will be paying an extra $280,000 to $877,000.

Tea Tree Gully Council has called an urgent special council meeting for tonight to consider changing its proposed rate increase from 2.7 per cent to cover $1 million it must find over the next two years.

Mayor Kevin Knight said it was one of the biggest tax increases he had encountered during his 20 years on council.

“I’ve never come across one so large, it sends a confusing message to the council and the community,” he said. “This government wants us to reduce our rates while doing this. It’s totally disrespectful to my community. What does this government want from us?”

Mr Knight was attending a national local government conference in Canberra with other South Australian mayors when they learnt the Solid Waste Levy increase had been announced in the State Budget.

Norwood, Payneham & St Peters Mayor Robert Bria said councils had planned their budgets on an anticipated $10 increase in the levy from $100 to $110 — not $140.

“To cop another increase of $30 a tonne from January next year is a disgrace,” he said.

“As it stands, local government is caught in a pincer movement trying to deal with the impact of the China Sword issue and now it has to deal with unannounced fee increases to the solid waste levy.”

Prospect Mayor David O’Loughlin said increasing the levy was “hypocrisy writ large” by a government which wanted to introduce rate capping.

“Really, this is the final nail in the coffin of their hypocritical, bogus rate capping campaign,” he said. “It is a dodgy surplus propped up on a rubbish tax.”

Gawler Mayor Karen Redman said the higher levy would cost her council $125,000, which would have to be found from cuts, higher rates or using its financial surplus.

Salisbury Mayor Gillian Aldridge said the increase would cost her council an extra $770,000 in the next financial year, which would have to come from budget cuts or a higher rate increase. Picture Dean Martin

“Across the northern suburbs we are looking at $1.4 million across three councils,” she said. “We are not rich communities; $1.4 million is a bloody lot of money.”

Marion Mayor Kris Hanna said the waste levy increase would cost his council an extra $404,000 in the next financial year, with ongoing annual increases of $600,000.

“That’s a significant impact on our budget,” he said.

“We had settled on a 1.8 per cent average rate rise, one of the lowest rises among South Australian councils.

“If we want to retain that we will have to cut something.”

Salisbury Mayor Gillian Aldridge said the increase would cost her council an extra $770,000 in the next financial year, which would have to come from budget cuts or a higher rate increase.

“We were very conscious of keeping rates at an affordable cost,” she said. “We sat there, night after night, trying to get it right and now we have got to the stage where we have to throw it all out.”

Onkaparinga Mayor Erin Thompson said her council would have to find an extra $877,240 for a “State Government stealth tax imposed on councils and ratepayers”.

“What’s most disappointing is the total lack of consultation before announcing this outrageous increase,” she said.

“Imagine if councils operated in this way.”

Mitcham Mayor Heather Holmes-Ross said she was “absolutely blown away” as the increase had come by surprise.

“The State Government knew all councils were deciding their budgets and had gone out for community consultation with their proposed rate increases,” she said. “To hit us with this now is pretty disappointing, I must say.”

Mr Lucas defended the lack of consultation with councils before the levy increase was announced, saying most decisions made in State Budgets were implemented without consultation.

“I appreciate councils are upset but you don’t go out and consult with councils to say how much they would like us to increase the levy,” he said.

Mr Lucas said most of the money raised by the levy increase would be spent on coastal protection work to save West Beach and Henley Beach from sand erosion.

WHAT THE MAYORS ARE SAYING

“This increase is disproportionately disadvantageous to growth areas like Playford, which puts huge strain on budgets which are already stressed by trying to fill gaps in infrastructure already left by state governments.”

Glenn Docherty

PLAYFORD

“The lack of consultation and last minute decision a week out from our planned budget approval should be condemned by all South Australians. Council will now need to determine the potential impacts on rates, services and works projects.”

Jan-Claire Wisdom

ADELAIDE HILLS

“We set our budget last week and our rate increase was below CPI. This week the State Government raises our rates without consultation, setting our community up for an increase they didn’t need to have.”

Angela Evans

CHARLES STURT

“Why are regional councils and our communities being asked to take even more on our shoulders.”

Keith Parkes

ALEXANDRINA

“I’m really disappointed. If they had a plan alongside it that was solid in terms of what this money will do, I would understand it in a way. It’s that little bit harder to swallow without a plan in place.”

Claire Boan

PORT ADELAIDE ENFIELD

“The lack of consultation is unacceptable. Councils are held to account by their ratepayers and are continually engaging with their communities – why is it that the State Government does not engage with local government before announcing such high impact activities.”

Mark Wasley

ADELAIDE PLAINS

“This announcement blows a $67,000 hole in our draft budget for next year and $240,000 the following year. It definitely has the potential to negatively impact on the people of Whyalla.”

Clare McLaughlin

WHYALLA

“The Government’s decision appears to be a double whammy for regional areas, with the main intent for the increased levy to be used to remediate the sand at West Beach, a benefit that is difficult to sell to regional residents.”

Leon Stephens

PORT PIRIE

“This blatant revenue grab is at odds with everything we’ve heard about the State Government wanting to lower the cost of living, and again makes local government the bad guy when it comes to hitting South Australians in their hip pocket.”

Dean Johnson

KIMBA

“This is yet another example of taxation by stealth and a further burden on the ratepayer by the State Government. It needs to explain how this increase will be reinvested to benefit the community, the waste industry and the circular economy.”

David Burgess

MID-MURRAY

“Our budgets are out and we won’t have an opportunity to reassess them now. We had no idea this was coming and essentially it means there will be more projects we need to take off the table as a result.”

Travis Barber

STREAKY BAY