Soaring rates: How it's done in Australia

The South Australian capital of Adelaide, comparable in size to Auckland, intends pegging rates within the annual rate of inflation despite soaring bills from rising interest rates, insurance and power costs and higher wages and salaries.

In 2006-07 the city council will need to raise about A$150 million ($180 million) to meet operating and capital costs. Most will come from rates, borrowing and user-pays charges.

Rates will contribute A$57.67 million to city revenue over the next 12 months, about A$3.4 million up on last year.

Net borrowings will rise by A$28.18 million - mainly to fund a new bus station and carpark - to A$56.19 million by the end of the year. User-pays charges, the third-largest source of revenue, will rise by A$1.25 million to A$43.41 million. These include on-street parking fees, charges for the use of public land for such purposes as outdoor cafes and advertising hoardings, and for council-owned facilities such as a golf course and aquatic centre.

A further A$9.38 million will come from statutory charges set by the State Government but collected by the council for parking fines and bureaucratic tasks.

State and federal government operating grants and subsidies will contribute A$1.2 million, helping to fund libraries, roads, home assistance and community care, traineeships, child and youth development, community safety and environmental health, and moves towards Aboriginal reconciliation.

Investments and reimbursements will provide a further A$2.85 million towards operating revenue.