Port Augusta Council backs down on controversial rate hike

An outraged community has a major regional council poised to abandon its controversial plan to hit thousands with a huge rate hike

The Joy Baluch Bridge duplication project at Port Augusta. Picture: DIT

A major regional council is poised to abandon a controversial plan to hit thousands of residents with a 20 per cent rate increase.

Port Augusta Council will hold a special council meeting on Tuesday to introduce a new capital value rating system with maximum increases of 10 per cent.

The change follows community outrage over an initial proposal to cap residential rate increases at 20 per cent over the next two financial years.

A record 120 submissions were received during community consultation over a legally required move to rate properties based on their capital value rather than site value.

The Joy Baluch Bridge duplication project at Port Augusta. Picture: DIT

Elected members asked chief executive officer John Banks to organise a “think tank” to seek external views on the council’s financial management.

The forum earlier this month was chaired by Mayor Brett Benbow, who heard residents did not trust the council, wanted better communication and tighter controls over spending.

Mr Benbow was told there was a widespread view the council’s financial problems had been developing for 20 years but inadequate action had been taken to address them.

“Concern was raised that staff and elected members are not taking the matter seriously and that the perceived culture of spending needs to change,” said notes from the meeting.

“There is a perception (staff) salaries are too high.

“There needs to be a plan to restructure and a plan to make changes.”

The notes said Port Augusta residents “did not feel that they are being listened to”.

“There needs to be better communication with the community as there is a lot of untrue information being circulated around the community that is not being refuted,” they said.

“Perceptions become reality.”

The notes were presented to a special council meeting last week which voted to order staff to abandon the plan to introduce the 20 per cent rate cap and reduce it to 10 per cent.

The Port Augusta Council offices on Mackay Street, Port Augusta. Picture: Colin James

A staff report said the change would cost the council $1.33m in lost rate revenue during the 2021-22 financial year.

Residents would still be paying a new fixed charge of $900 for waste collection and sewage disposal.

The financial overhaul comes as Port Augusta experiences a construction boom with work well advanced on the $200m duplication of the Joy Baluch Bridge and a large wind farm on the city’s southern outskirts.

The wind farm is being built around a large solar farm which powers one of the country’s biggest hydroponic tomato facilities.

The council announced on Friday that the State Government would provide $21 million for the refurbishment of the Port Augusta wharf and demolition of the Great Western Bridge.