City of Onkaparinga set to propose a 6.8 per cent rate increase with the aim of limiting rising debts

A southern suburbs council will propose a 6.8 per cent rate increase, expressing a “need to get back into surplus” after seven years of deficits.

Onkaparinga Council are set to propose a 6.8 per cent rate increase when they meet tonight, with Mayor Moira Were expressing a “need to get back into surplus” after seven years of deficits.

Rates already went up 4.7 per cent last financial year – taking the total up to 11.5 per cent over the last two years – and now council believe the only way to “do the things the community wants” is to reduce library material, cut funding to the grants program for sporting events and reduce the Healthy Active Lifestyles initiative in order to have enough money in the budget.

While council has already identified saving $2.5m in employee costs, Ms Were said that seven years of deficits was “completely unsustainable” and is committed to getting debt back to an “acceptable level”.

Onkaparinga Mayor Moira Were with Premier Peter Malinauskas and Davenport MP Erin Thompson. Picture: Supplied

“We’ve had deficits now for seven years and everyone knows that even in your own household that’s completely unsustainable,” she told FIVEaa this morning.

“We need to get back into surplus. Decisions get made, but this chamber has looked under every rock – every nook and cranny – to try and find savings that they can, and they have come up with considerable savings.

“We need to put something back into the books so that we can spend on the things that we need to spend on and get back into surplus and not have these debts continuously rising.”

It comes after Holdfast Bay ratepayers will each be made to cough up more than $120 extra over the next three years to help fund a major $40m renovation of Jetty Rd.

Aerial picture of Jetty road, Glenelg. Picture: City of Holdfast Bay

Artist impressions of Jetty Road at Glenelg. Picture: Supplied

The average household is expected to be hit with a $41 increase next financial year to fund the multimillion-dollar development, with council anticipating that figure to be at a “similar level” across the following two years – totalling upwards of $120.

Adelaide City Council ratepayers also face the prospect of soaring rates bills to pay for a $150m budget blackhole largely caused by underfunding from previous councils.

Lord Mayor Jane Lomax-Smith told The Advertiser in February the council would need to spend an extra $15m a year over the next decade to “get control of it”.

The council’s finance committee heard it would take at least three budget cycles to catch up with chronic renewal underfunding over the past three years, especially for buildings, roads and footpaths, and public amenities and art.

The proposal made at tonight’s meeting will soon be open to community consultation.