Local Councils pledge review to confront rates fears

21 August 2004

The state's peak resident group has welcomed proposed reforms to council rating procedures, saying the system must be "urgently fixed".

Bowing to community pressure, local government leaders have established a public review on rating systems. The Local Government Association's executive committee endorsed a series of proposals at a special committee meeting of mayors and council executives, who voted to conduct an inquiry later in the year to try to find answers to rating concerns.

They also voted to introduce "rolling" valuations every three to five years.

Under such a system, annual valuations would be abandoned in favour of average valuations calculated over longer periods.

South Australian Federation of Residents and Ratepayer Association president Kevin Kaeding yesterday said rates should be capped.

"It has been an extreme burden on the ratepayers," he said.

"The whole system is haemorrhaging, it seems to be out of control and ratepayers are at the end of their tether.

"People are asking: How high will rates go and how long will rates continue (to rise)?"'

The LGA's executive committee also backed further reforms, including a review of valuations and property taxes, an audit of council rating processes and an overhaul of complaint handling. The proposals rely on backing from councils and the State Government.

The LGA will begin public consultation next week.

The Advertiser reported in June that councils were increasing rates by an average 5.3 per cent – almost double the inflation rate – with some increasing rates by double digit percentages. The rises were to help fund a backlog of infrastructure maintenance.

Councils and the State Government face bills of up to $1 billion within five years to replace or maintain key infrastructure.

Despite signalling the reforms, LGA president John Legoe rejected suggestions there was a widespread problem with council rates. "From what we have heard, there are some concerns but not in some areas," he said.

"(The proposals) will protect people from the spikes in valuations. We are trying to improve the system."

Reproduced from The Advertiser newspaper.