Unlimited Money
How would your spending go with unlimited money? Would you then review your current spending to ensure it was needed and was the best value?
Unley Council works out what we want to spend and then charges the rate payers to cover the cost! The staff and Councillors have produced their wish lists, and then we total the list up and haggle over the last 1% of the budget, and in the past have failed to review the total budget.
As your elected Councillor, I moved a motion to reverse the way we set our rates. I was happy with the debate, and real progress has been made. Most spoke in favour of setting the rate first…..talk is cheap……no-one queried my maths or figures… from $731.87 2001 up to $1,469.26 today for the average residential rate. Indeed 40% above inflation.
Talk is Cheap
A motion to set a fair target rate first lost. Fullerton Ward Councillor Peter Hughes seconded the motion
"That in framing the 2014/15 Budget, Council requests the Administration to provide options and their implications within the target rate range of a 3.3 – 4.0 percent increase in rates.
OFFICER’S COMMENTS
If the Council accepts this motion, the Administration will provide a range of rate increases from 3.3 – 4.0%, for Council’s consideration.
Cr John Koumi Parkside ward and Cr Peter Hughes Fullerton Ward supported the motion.
The Arguments
1. 4% above inflation is only a cup of coffee a week
ANS:$640.00
is more like one every day and for some it is not trivial but difficult. The graph
shows how over time such a rate rise is unsustainable.
2. To cut rates is to cut sevices: Over the past two years staff found savings of
$1,450,000 with no cuts to services. We spent the lot with continuing rate
rises as well! To reduce spending does not always mean a cut to services. The 3.3% rate proposed in fact should mean all existing services could be maintained even without the 1.2% savings or about $350,000 staff have said they will find this year as this 3.3% is the expected rise in the cost of council goods and services for 2014 based on the average of the previous three years. Even
in schools across Australia we doubled the expenditure above CPI over the
decade with reduced results!
3. Nominate what you want to cut from the wish list: This is a pointless exercise because
with unlimited money the cuts may be made and your elected members will spend
the lot! This happened in 2010 when I did suggest we cut the underwater street
tree tank program to reduce rates! We did build the recycling water program but
the savings did not reduce rates…. (See Ans... 2). I do have concerns about
funding extra Fringe tack ons. I found the Fringe program packed full with so
much choice but I am sure the free coffee tasting in the Memorial Gardens paid
for with $20K from ratepayers will be good.
4.
Our rates are no higher than other
councils: Unley Council
residential rate for a house of the same value are 10% higher than Burnside. Business differential is 50%
higher in Unley….. Hence the Tour Down Under Party to highlight King William Road
supporting our local shops is a fair $200,000.00 expense.
5.
You’re just election grand standing: For the past six years I have
suggested cuts and savings and sometimes council has compromised. I believe our
rate would be 6% higher if I had not been elected. Whilst I am pleased with our
teamwork as councillors, I find it irresponsible not to SET A TARGET RATE FIRST
AND THEN CUT OUR CLOTH TO FIT. We do have big future costs to prevent flooding
in Unley. Even if I were not running for re-election I would be still be
pushing to set a target rate in Council, and then cut our cloth to fit…. Or
explain to those paying rates why we have changed.
6.
It is not legal to set the rate first
and then budget against this: This has a basis of truth. But it is false because I have
always sought to set a target rate to do the budget against. Unexpected things
can happen or be created to challenge the target. We need to ensure the result
is sustainable long term. However it seems that those with a vested interest in
secret rate setting and high spending will try this on!
7.
This is just popularism…why not cut
rates below CPI say to 1%? I want our local government to provide good services, with
parks, good transport for cars, bikes and PEDESTRIANS…etc….. If my notice of
motion is to set the rate below the 3.3% expected rise in the costs of Council
goods and services I will argue that we need to reduce our high long term debt
while interest rates are low and we need to maintain our existing assets. Rates
are a balance…. But setting rates with unlimited money to fund every wish list
is equally unacceptable. I remember the Boston Common…. A very large Victoria
Square in the USA city of Boston was weedy with broken down playgrounds. We need strong but accountable Local Government.
8.
Wages
Rates over the past 10 years have increased above wage increases by 16.2%
above the wage price index for South Australia.
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