Marion and Burnside councils consider rates freezes in response to coronavirus pandemic
Two more councils will likely freeze their rates and pay rises for senior staff in a bid to ease pressure on stressed household budgets.
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Burnside and Marion councils will likely freeze rates next financial year as they attempt to lessen the impact of the coronavirus pandemic on household budgets.
At meetings on their draft budgets last night, the councils agreed to hold rates at 2019/20 levels, with ratepayers to be charged an average of $1901 in Burnside and $1484 in Marion.
They join Salisbury, Tea Tree Gully and Campbelltown in considering rates freezes in 2020/21.
Burnside, which has already frozen the salaries of nine senior staff, said all levels of governments had a role to play in stimulating the economy.
Cr Henry Davis said the council needed to support the community as it tightened purse strings.
“Money is better in the pockets of our ratepayers at this stage rather than burning them with future debt,” Cr Davis said.
The council has forecast its own debt to increase from $19 million to $19.4 million by June 30 next year.
A report said there was “little contingency for any unforeseen events”.
Marion councillors did consider a 1.6 per cent rate increase, which would have allowed the creation of a $1.2 million hardship fund for targeted coronavirus relief.
But deputy mayor Matthew Shilling said a rate freeze would be more beneficial.
“A zero per cent rate rise benefits the whole community, not just some,” Cr Shilling said.
The council has forecast a budget deficit of $606,000 in 2020/21.
It does, however, still plan to spend $10 million on a redevelopment of Mitchell Park Sports and Community Centre and contribute $4.5 million towards a $7 soccer complex on Majors Rd, O’Halloran Hill.
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Meanwhile, Prospect is considering a 1.9 per cent rate increase in 2020/21 – its lowest rise in more than 15 years – adding $36 to the average bill of $1935.
Big-ticket items in the council’s 2020/21 draft budget included a $1.02 million upgrade of Charles Cane Reserve on Churchill Rd – which it was funding jointly with the Federal Government – and a new $437,500 playground at Prospect Gardens.
Rate revenue would not cover the council’s operating budget, so the shortfall of $573,000 would be met by cash reserves.
Prospect Mayor David O’Loughlin said the “low” increase was “no mean measure”.
All draft annual business plans will go to community consultation. Visit the councils’ websites for more information.