According to the draft presented to the councillors on Monday night the CPI (consumer price index) figure of the weighted average of the eight capital cities for the period March 2007 to March 2008 was 4.2 per cent.

“Therefore, the general increase in rate revenue is 1.8 per cent greater than the average CPI percentage that is used as an index for rate increases,” stated the report.

“However, many councils will be using the SA Local Government price index as a basis for assessing the change in Local Government costs.

“The latest available full year data for the index was up to December 2007 and was 3.7 per cent.

“We are also aware that Whyalla’s price increases would be higher again due to the surge in activity making it harder for council to find tradespersons for capital works and projects.

“Property valuations are expected to be received from the valuer-general’s department in late May and are scheduled to be adopted at the June council meeting.”

Whyalla Residents & Ratepayers Association Inc. chairman Ted Lavender said with the present economic situation with those with a mortgage it certainly isn’t going to help with a rate rise on top of a mortgage rise and could present a financial problem.

He said those on a lower income are feeling the pinch with rising prices of petrol and spending at the supermarkets without the council pitching in.

“Council should reduce their spending,” Mr Lavender said.

“I would like to own a Rolls Royce car but have to settle with a Ford!”

Council chief executive officer Phil Cameron said the rate rise was part of the council’s 10-year strategic plan to make up for the depreciation of assets.

He said the plan was widely discussed before being implemented and it was agreed that a six per cent rise will take place each year for the first five years of the plan.

“We have gone through the first three years of the plan and the council is heading towards sustainability which was the main objective of the strategic plan,” Mr Cameron said.

“The council has just began discussions on the first draft of this year’s budget and it is open for public consultation and suggestions.”

The council will issue a statement later this week on concerns raised by Mr Lavender.

“If council had sold the 12.866 hectare Eco City Core Site at $50 square metre then they would have raised $6.43 million, then there wouldn’t be a need for a six per cent increase on rates,” Mr Lavender said.

“In any increase of rates it doesn’t just affect homeowners but also those paying rent, the increase will eventually filter down to them.

“Council should be more prudent in their spending.”

“When we were able to view the monthly accounts for payment each month in the council agendas, we observed that consultants were commissioned to draw plans for proposals before public acceptance and when these were rejected the drawings were discarded.

“For example plans for a joint soccer club in the Appleyard Reserve the proposal was rejected so the cost of these plans were a waste and so it goes on.

“Council it seems put the cart before the horse.

“Why can’t sketches of plans be drawn in house to be discussed to the public and then when there is acceptance then commission consultants?

“We also noted that when staff and elected members attended seminars and meetings more than one person are sent therefore increasing the costs.

“Perhaps just obtain the minutes on some occasions would be just as fruitful and a lot cheaper.

“It is time that a tighter control on council spending be carried out.”