The state government couldn’t do it, so one council goes alone on rates cap

State government plans to cap rates at CPI are dead in the water but one Adelaide council has gone and done it anyway.

The state’s biggest council has done what the state government couldn’t and capped council rates at CPI to 2030, while reducing debt.

The state government came to office in 2018 on a promise to cap council rates across the state but was thwarted in October last year by other councils and demands for compromise by the Opposition.

But last night Onkaparinga Council, the largest with around 180,000 people, voted unanimously to link its future rate increases to inflation in its Long Term Financial Management Plan.

With rates capped at no more than 2.5 per cent, cost savings will mean the measure will coincide with a peak in debt of $138m in 2024, followed by a rapid decline back to today’s level of $100m by 2031.

Long-time critic of the former council administration, Councillor Martin Bray, said elected members were celebrating the dual breakthrough in the council’s economic position.

“I had been a lonely voice looking for financial reform at Onkaparinga,’’ he said.

“Over my time on council (since 2010), rates have increased over 30 per cent above CPI.

“Onkaparinga rates are much more than for similar properties in adjacent councils and debt has been on a steep upward trajectory, heading for $200 million.”

Onkaparinga CEO Scott Ashby.

Mr Bray said tackling the council’s spiralling debt problem was made possible when the former head of the Department of Primary Industries and Regions, Scott Ashby, was appointed CEO last year.

“The CEO has brought with him the sort of high standard of financial accountability which the public service is known for,’’ Mr Bray said.

“It is now up to the community to keep an eye on council and make sure we stick to

the plan.”