Local ratepayers have been slapped with a rate increase of five per cent for the next financial year.

Elected members of the Naracoorte Lucindale Council had mixed reactions to the increase, but the majority agreed a five per cent increase was the right thing to do to safeguard and protect the council, which is in a “dangerous position” financially.

The council administration had initially proposed a 5.8 per cent increase in rates via a 53-page document, which was unveiled at a special May 1 council meeting.

During a special council meeting on June 4, councillors debated what would be a better option: a five per cent increase in rates, or 5.8 per cent.

Cr Cameron Grundy moved that the general rate increase for the 2024–25 Annual Business Plan and Budget be based on 5 per cent.

This was seconded by Cr Trevor Rayner.

Speaking during the debate, Cr Tom Dennis said it’s a time when everyone is hurting, and it is hard to raise rates.

“I think we (the council) have been very conservative. The council prides itself on the fact that it is a financially responsible council,” Cr Dennis said.

“I don’t believe our CEO recommending a 5.8 per cent increase and us (councillors) going 5 is financially responsible.

“I think it is 5.8 per cent, and that’s my opinion.

“In this environment, with the cost of business going up, we need to safeguard this council and protect it. I think we need to raise rates by 5.8 per cent.”

Mayor Patrick Ross said he understands the council has been incredibly conservative, and elected members have been very prudent in the way that they have developed budgets.

“We have a long-term financial plan, and if we do wish to make sure that we hit those numbers, there is a requirement for us to have a very steady view about rates,” Mr Ross said.

“I think I agree with Cr Dennis,” he said.

CEO Trevor Smart said the council focuses on two things – operating position, which is important to pay our day-to-day bills, and funding future cash positions to maintain our existing assets.

The second Mr Smart said was how much cash the council has to take opportunities in the future and remain viable.

“Within the report, I have recommended 5.8 per cent (rate increase),” he said.

Mr Smart said the council is coming to a point where it is at risk with its operating surplus, potentially shifting into deficit.

“That’s really a dangerous position for a council to be in.”

Cr Monique Crossling said she had received positive feedback in the community about the 5.8 per cent increase.

“When they asked about 5.8 and you explained to them that if they want services maintained, then 5.8 per cent is the reason why,” Cr Crossling said.

Most in the community find it quite palatable, she told the council.

“Our administration and our financial experts spent hours developing a budget, giving us guidance on where we should be, and then to turn around and say let’s just slash it to five—what’s the point when we are not listening to our administration.”

She said she understood and sympathised with the community that no one likes rate increases, but the council needs to do it in a strategic manner.

“We are not here to appease the people, our friends, or whatever it is in the community. We’re here to make strategic decisions for the betterment of the community.”

Speaking on his motion, Cr Grundy said the long-term financial plan is inconsistent, and the five per cent should be considered.

Cr Rayner said we would sometimes have a boom and sometimes a burst.

Cr Craig McGuire said he was initially coming in to vote for the five per cent.

“But listening to the staff, we need to put faith in our staff, there were some big issues raised about potential costs that could be coming our way,” Cr McGuire said.

“It’s not a popularity contest, it’s a hard decision, and I am going to speak for a 5.8 per cent increase.”

Cr Damien Ross spoke against the motion.

“From what I gather, some of the councillors are across the impacts of what this is all about,” Cr Ross said.

“You need to have faith in the leadership in our council and in the guidance they are giving us.”

Cr Darren Turner said he did not care about how the votes would turn out but wanted the council to be prudent with rate adjustments.

“I would think it sends the right message to the community, particularly the high-rate payers in farming in regional areas and also the ones that are really struggling, that we are going to be prudent this year and next year going forward, and we are going to keep adjusting rates,” Cr Turner said.

The council had organised several public consultations on the draft budget to get feedback from the community on the proposed rate hike.

There were three community drop-in sessions: one in Naracoorte (the first on May 14 and another on May 16), and one in Lucindale (on May 15). No community members attended any of the sessions.

Online and hard copy surveys opened on May 6–27, 2024.

Council received 13 responses in total, including one hard copy survey response.

The council also received two emails from members of the community during the community consultation period.

Crs Peter Ireland, Grundy, Turner, Rayner, and Abigail Goodman voted in favour of the motion to increase the rate by five per cent, while Crs Crossling, McGuire, Dennis, and Damien Ross voted against.

Cr Crash Downward was not present at the meeting.

The motion was carried.

This article appeared in the  Naracoorte Community News.