DESPITE the objection of one elected member, Mount Gambier City Council announced last week it will oppose rate capping in any form.
At last Tuesday’s meeting, council moved to support the position of the Local Government Association (LGA) after the peak representative body in South Australia rejected the state opposition’s policy on rate capping.
During heated debate in the council chamber, Councillor Christian Greco called for community consultation before announcing a position, but was outvoted eight to one.
“Council completely opposed rate capping despite zero public consultation,” Cr Greco told The Border Watch.
“I’m not saying I’m for or against rate capping, I just think we need to gauge community views before council makes the decision.
“I think members are scared to ask the community about rate capping, because I think if you ask residents to choose between rates that can increase at any time or rates that are capped at say 2pc, they will choose the capped rates.”
In April last year the LGA unanimously resolved to reaffirm its view that decisions concerning council rates are better informed and the impacts better understood when made by respective councils in consultation with their communities.
The resolution followed the proposed Local Government Rate Increases Amendment Bill 2016, which sought to introduce rate capping in South Australia and failed to gain support in the lower house.
Councillor Penny Richardson argued local government was already ‘at the mercy of state and federal government.’
“Local government is the bottom of the food chain,” Cr Richardson said.
“We are fiscally responsible and we need to have control.”
The sentiment was echoed by councillor Steve Perryman.
“We are the most transparent level of government – the only level of government required to make our budget and business plan publicly available,” Cr Perryman said.
“We service the community efficiently and openly and we are directly accountable to the community.
“Rate revenue accounts for around 73pc of council’s operating income – if we cap rates how do we fund things the community wants?”
Councillor Frank Morello agreed council was ‘in the best position to make informed decisions regarding rates.’
Cr Greco proposed open community forums to discuss the issue with rate payers.
“I believe we need to take an unbiased approach and talk to the community, talk through the positives and negatives so rate payers are informed,” Cr Greco said.
“I believe we are a responsible council but elected members in the future may choose to put rates up a ridiculous amount.
“In two years time a new council may decide to significantly increase rates.”
Cr Greco said council would still be able to fund major community projects under a rate capping scheme.
“I think members are concerned about how we will fund major projects, but under the proposed capping scheme councils can still apply to change rates for one year to fund certain projects,” he said.
“There would certainly be more paperwork involved but I believe rate capping helps councils live within their means.”
City Council moved that decisions affecting local ratepayers should be made locally without undue influence or capping imposed by decision makers that have no direct accountability to the local community.
