Cairns councillor sensationally votes against budget in protest of rate rise for elderly residents
A lone councillor has voted against an extraordinary rate hike on vulnerable retirement village residents in Cairns, arguing that the financial burden would prove too great for many elderly community members.
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A lone councillor has voted against an extraordinary rate hike on vulnerable retirement village residents in Cairns, arguing that the financial burden would prove too great for many elderly community members.
But the council has stood firm, arguing that retirement village owners have the option not to pass on the increase to its residents.
Cairns Regional Council delivered a record $723.7m budget on Wednesday featuring a huge $421m capital works program, with the majority of those funds going towards the Cairns water security project.
Residential ratepayers paying the minimum rate can expect a 5.4 per cent rate rise to their twice-yearly rates bill, equating to an increase of about $155 in the next financial year.
Overall, Cairns residents will see a general rate rise of 5.9 per cent, down from 6.7 per cent last year.
But inside the chamber, Division Three councillor Cathy Zeiger challenged councillors on the most contentious aspect of the budget, a massive rate increase of more than 800 per cent on elderly residents living in retirement homes staged over four years.
“The proposed change in the rates category has caused me more angst than any other topic in any previous budget,” Ms Zeiger said.
“In theory, I support the policy proposal. The ideology of an equitable rating system with all residents paying rates according to size of property to ensure that council can provide services.”
“Unfortunately, the unintended consequence of suddenly increasing the rate on this cohort will cause hardship on those who initially bought into the property … unaware that they would be paying much higher rates in the future.”
As an alternative, Ms Zeiger proposed “grandfathering” current pensioners living in retirement homes, making them exempt them from the rate rise, with new buyers entering under the revised terms.
“Despite presenting a compassionate and viable solution I was unable to gain support to pursue this further which was deeply disappointing,” Ms Zeiger said.
“Even with the increase in pensioner discounts I argue that the rise will still burden pensioners who are financially vulnerable and unprepared. What happens after four years.”
Ms Zeiger’s comments were greeted with strong applause from dozens of pensioners sitting in the public gallery.
Mayor Amy Eden countered that grandfathering individual residents inside villages wouldn’t be possible because the council charges rates to landowner.
“We can’t rate the tenant,” Ms Eden said.
“So whether the corporation, the landlord, decides to pass on that rate increase to their tenants, I guess we’ll have to wait and see.”
‘INVISIBLE’ ELDERS
Coral Sea Gardens resident, Kay Nyland said the loss was devastating for many retirees who felt unheard during the public debate over the rate spike.
“As you grow older, you become invisible throughout the community and today I feel that the council made us feel more invisible,” Ms Nyland, 76, said.
The rate change threatened the future of retirement villages in Cairns, Parks Earlville resident Kevin McRae said.
“Pensioners’ income only ever goes up by CPI (Consumer Price Index),” Mr McRae said.
“So in four years’ time, the gap will be even further than it is today and people will be paying significantly more.
“This action is a danger to retirement villages. It may well be that the retirement village (owners) will decide they don’t want to invest in this any further, particularly if the council tries to make them pay the rates.”
Mr McRae strongly criticised Division Four councillor Trevor Tim for voting in favour of the rate increase.
“He came to a residents’ meeting and spoke to 70 people where he said he would go into bat for us and there was absolutely no evidence of that today. He chickened out.”
Mr Tim said he ultimately voted with his heart on the issue.
“I had two face-to-face meetings with residents and my heart went out to them,” he said.
“My beautiful father, 82-years-old, lives on Lake Placid and pays the full rate.
“He worked hard all his life and is a ratepayer. With the love for my father, I went with that side (voting for the rate rise). That’s what made me fall on the other side.”
Council chief executive Ken Gouldthorp said claims that the rate rise had to be passed on to elderly residents by retirement village owners was wrong.
“That’s correct,” Mr Gouldthorp said.
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