Opal mining town Coober Pedy flags ballot to decide on how to address $9m debt
A massive rate rise in Coober Pedy has been all but abandoned but locals still face huge water bill rises to help the local council pummel its debt.
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A push for a massive rate rise in Coober Pedy has been all but abandoned as its residents prepare for a ballot on measures to tackle their local council’s debt.
However, residents instead face a huge hike in water bills – about $280 for the average property each year.
Coober Pedy administrator Tim Jackson had previously flagged a rate rise of up to 32 per cent in 2020-21 to help bring the council back into the black.
As the council yesterday advertised its plan for a poll on its financial management, Mr Jackson said it was now clear the community – one of SA’s poorest – could ill afford a large increase on rates bills.
Locals will be asked if they support a council move to sell its water and electricity infrastructure to the State Government in a bid to claw in about $13 million, wiping the town’s $9 million debt.
They will also have a say on whether the council should remain in administration until the next local government elections in 2022, and if they should again have a ballot any time the administrator considers raising rates above inflation.
It will cost about $15,000 to host the October poll, following a similar process to council elections, during which ratepayers vote through the post.
Mr Jackson said while the ballot plan was “pretty unique”, “we need to empower communities”.
“If I’m around until the next election I think we need to create a culture of having polls,” he said.
“It costs money but it’s important that the voters make those really crucial decisions.”
Coober Pedy manages the town’s water supply, drawing it from the Great Artesian Basin and treating it before pumping it to homes and businesses. It spends about $600,000 a year subsidising that cost.
The district’s water infrastructure also needs a major upgrade.
The council in April asked the State Government to help cover the $9.30/kl cost of supplying water in town. It compares with $3.37/kl in Adelaide.
Mr Jackson said if the Government did not provide any subsidy by October, the council would be forced to increase water charges by about 30 per cent to help manage its debt.
Mr Jackson was appointed administrator of the opal mining town in January after Ombudsman Wayne Lines last year found “serious failings and irregularities” at the council.
Mr Jackson said the council would keep lobbying for Government help to reduce water prices.
Water Minister David Speirs said the Government would “continue to discuss options available” to tackle the issues Coober Pedy faced.
“Any proposal needs to be carefully considered against the impacts on South Australian taxpayers,” Mr Speirs said.
He said there were a number of council-owned schemes across the state and councils were required to manage them to ensure their long-term viability.
michelle.etheridge@news.com.au