Most metropolitan Adelaide councils seek ‘modest’ rate increases of around 2.5%
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Most metropolitan Adelaide councils are seeking “modest” rate increases of around 2.5 per cent in draft budgets released for community consultation.
Only two councils — Mitcham and Playford — are seeking rises of more than 3 per cent, with debt-laden Playford wanting the state’s highest increase of 3.9 per cent.
The majority of councils are aiming to end the next financial year with operating surpluses while only one — Campbelltown — will remain debt-free.
Playford, on the other hand, owes almost $140 million, with more than $85 million consisting of loans from the Local Government Finance Authority on fixed and variable interest rates.
Its neighbour, Salisbury Council, is seeking a rate increase of 2.5 per cent as it prepares to spend $1 million finishing the biggest capital project in local government – a $43.8 million civic and community hub at Salisbury for which it has borrowed millions.
A key promoter of the hub, Salisbury mayor Gillian Aldridge has described the council’s rate increase as “sensible and modest” as it works to reduce its debt.
All metropolitan councils, except Campbelltown, have various levels of debt from borrowings, which their executives argue enables them to continue delivering capital works projects while rates cover essential services to their communities and other costs, such as wages.
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Under local government regulations, each council must send out draft annual business plans containing their proposed rate increases for community consultation.
Only the biggest and smallest of the 17 metropolitan councils — Onkaparinga and Walkerville — have yet to release their plans for public feedback.
Onkaparinga was due to discuss its budget at a special council meeting on Tuesday night but it was cancelled while Walkerville is due to meet again next Monday night.
The budgets usually are determined following workshops between staff and elected members, which often include bus tours to determine spending priorities.
The latest proposed rate increases are the first since the Local Government Association fought a concerted campaign against the State Government’s plan to introduce rate capping.
LGA president Sam Telfer said the finances of most councils had been hit hard by the impact of the China Sword recycling crisis.
“Despite significant increases in waste and recycling costs, metro councils have worked hard to find efficiencies and drive downward pressure on rates,” he said.
“Councils are the only sphere of government to consult on budgets, and we encourage all ratepayers to participate in this process and have their say.”
Draft annual business plans must be available for public inspection for 21 days before councils hold public meetings to hear feedback.
The date of the meetings must be advertised at least three weeks before they are held. Submissions can also be made in writing.
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