Port Augusta residents threaten to leave the city over 20 per cent rate increase
Furious Port Augusta residents facing a massive rate increase from controversial reforms are threatening to leave the Iron Triangle city.
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Port Augusta residents are threatening to leave the city over proposed rate increases of up to 20 per cent caused by controversial reforms.
A special council meeting has received dozens of submissions complaining about the council’s decision to change its rating system from site value to capital value.
Many of the submissions were from people who said they were considering selling their properties and moving elsewhere because of the rating system changes.
The reforms – which have taken several years to develop – will result in higher rates for many residential properties. The council is proposing to vote this month to cap the increases at 20 per cent over the next three years.
Lifelong Port Augusta resident and financial planner Maurice Nistico told the meeting on Thursday night he had clients who were considering moving.
“One was a single mother whose annual rates were increasing from $1340 to $2338 “who now thinks she made a mistake and is planning to retire elsewhere”.
Other clients included a couple about to retire whose rates were going “from $4042 to an obscene $5096 who say they can no longer to afford to retire here”.
Mr Nistico told elected members another client was a widow with rates rising from $1806 to $2277 “who can’t afford to shift anywhere else”.
“In my view, the result of your planned rate changes are akin to shifting the deck chairs on the Titanic,” he said.
“You haven’t achieved equity, you have just redistributed who is going to fund your extraordinarily high expenditure.”
Mr Nistico said the proposed rate increases and the council’s spending levels were “unsustainable”.
“Ratepayers are angry and afraid,” he said.
“You cannot continue to treat the community like an unlimited overdraft to pay for the mistakes of the past.”
Port Augusta Residents and Ratepayers Association spokeswoman Jodie Harris told the meeting that the council it was “unbelievable” the council was hitting some properties with 20 per cent rate increases in the middle of the pandemic.
“You cannot expect Port Augusta ratepayers to pay these outrageous rates, that even wealthy
capital city suburbs don’t pay,” she said.
“Nobody should be facing a 20 per cent increase this year and then another 20 per cent next year and then who knows what in the third year while the change to the rating system is phased in.”
Ms Davies urged councillors to “send this budget back to council staff and demand they make efficiencies across every service” to save money and reduce the rate increases.
Port Augusta mayor Brett Benbow said the council had to change its rating system “due to legislative requirements”.
“Council is also seeking changes from a minimum rate to a fixed charge, where everyone pays a base set amount plus a variable component based on capital value,” he said.
“Over time, this will generally provide a more fair and equitable system.”
Mr Benbow acknowledged the “broad range of property values in Port Augusta will see some ratepayers pay higher rates than others”.
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