Adelaide City Council to find ways to lower spending next financial year
After losing up to $30 million in three months during the COVID-19 pandemic, Adelaide City Council has agreed to look at cutting spending next financial year.
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Adelaide City Council plans to cut spending by $20 million to help with its COVID-19 financial recovery efforts.
At a meeting tonight, the council called for a report into ways operating expenditure could be reduced next financial year.
The Advertiser reported earlier this week the council had lost up to $30 million in income over the past quarter in light of the pandemic.
The council has already taken “immediate action” to free up almost $30 million this financial year, which includes re-prioritising capital projects.
Deputy Lord Mayor Alexander Hyde said the $20 million would help the council work out its recovery “focus”.
“These options need to speak to the re-imagining work and they do need to speak up to what we want the city to look like,” Cr Hyde said.
A 75 per cent drop in paid parking, waiving commercial rates for traders in its properties for three months, no frees from venues like the Aquatic Centre and deferral of rates had contributed to the $30 million loss.
As of the end of last week, the council had received 76 requests for rate deferrals relating to 199 properties, with the total value estimated to be about $1 million.
Cr Philip Martin called for a COVID-19 finance committee to be created to deal with the economic fall out of the pandemic, however, that was knocked back.
Councillors said it was another level of bureaucracy and slowed response time, angering Cr Anne Moran who left the online meeting.
Cr Martin said the committee would have allowed for “detailed consideration of financial circumstances … with just one subject on the agenda.”
More information about the council’s third quarter finances would be discussed next month.