District Council of Grant budget 2021-22 winners and losers

Rates, roads and rubbish are key to District Council of Grant proposed budget as it plans its comeback from a COVID-inflicted deficit. Find out how it will impact you.

Rate increases, road upgrades and asset management are on the agenda as Grant District Council plans to overcome its pandemic-inflicted operating deficits in the future.

The council tabled its proposed 2021-22 budget at Monday night’s meeting, the same night Mayor Richard Sage was forced to apologise after the South Australian Ombudsman found he had committed misconduct, before releasing it for public it for public consultation on Thursday.

District Council of Grant Mayor Richard Sage walking into Monday night’s council meeting. Picture: Jessica Ball

The 24-page draft Annual Business Plan outlines a $16.3m spend and an operating deficit of $693,166 which it forecasts can return to surplus in the next three years without significant increases in rates.

The plan says the 2020-2021 and 2021-2022 results are a direct result of operating implications of the pandemic.

“We do know this year, next year’s budget will be tight,” acting director corporate services Gary Button said at Monday’s meeting.

“There will be a demand against council’s cash reserve but we are of the opinion that we do have suitable cash on hand and the ability to fund our projects going forward if there is a need to by the way of grant application or by borrowing.”

Inviting public feedback, CEO Darryl Whicker was confident the budget would progress council towards long term sustainability.

“The plan and budget aim to meet our community’s expectations for effective services and continue progress towards District Council of Grant’s long term objectives set out in our Strategic Management Plan 2020-30 and our Asset Management Plans,” Mr Whicker said.

At the same time a rating review has taken place with a 34-page report recommending three crucial changes.

Both documents are open for public consultation which will conclude with a public meeting on Monday, May 31 at 5pm at the council office before the finalised budget is adopted on June 21.

Here are the winners and losers of the proposed District of Grant 2021-22 Budget.

RATES

Rates of close to $11m are projected to contribute 70 per cent of the council’s operating income.

The rate review proposes a four per cent rate capping increase, raising the minimum rate by 2.95 per cent and changing to a differential rate by land use system.

MINIMUM RATE

For the first time in two years the minimum rate would increase by 2.95 per cent, equating to $18, in line with inflation.

RATE CAPPING

Elected members raised concerns rate capping on primary production land was at a significant cost of $400,000 bore by all other ratepayers.

The proposal would see the current six per cent changed to a maximum of 10 per cent by application where the property is the ratepayer’s principal place of residence.

“It is difficult to determine how many ratepayers receiving this discount were residents but approximately $50,000 of the rebate were for ratepayers whose postal address were not in the district,” the report reads.

METHOD CHANGE

Switching from a general rate to a differential rate by land use system – the method used by most SA councils – to enable council to leverage rating to hit its strategic goals.

In the current system all properties are charged the same ‘rate in the dollar’, calculated by value of the land and its improvements.

The report proposes implementing a differential rate system with different ‘rates in the dollar’ set for different types of properties such as residential, commercial, industrial, primary production and vacant land.

Under this system it is suggested the 2624 primary production properties would be charged at 90 per cent.

ROADS

Drivers on Grant’s 1567km road network will benefit from more than $3.5m in construction works.

The plan proposes upgrading 27 roads plus resurfacing the Port MacDonnell Bike Track.

Allocations include $800,000 for resealing projects while the top road reconstructions include Cafpirco Rd, Compton, $280,296; OB Flat Rd, OB Flat, $251,488 and Sewarts Rd, Allendale $243,934.

PROJECTS

The $1.7m Mount Gambier Showgrounds is the big ticket item in the proposed budget with $850,000 of the cost expected to be covered by grants.

A $175,000 contribution to the Wulanda Recreation & Convention Centre, located in the City of Mount Gambier Council is listed as a project priority.

The plan also commits $100,000 for the replacement of the lower toilets at Donovans, $20,000 for scoping studies for a Port MacDonnell Community Complex building redevelopment and almost $4000 to connect the Tarpeena Town Hall to public wifi.

SERVICE CHARGES

Ratepayers can also expect increases to annual service charges.

The plan proposes increasing the community wastewater management schemes charge by $30 for occupied units and $25 for unoccupied units.

Waste management charges could rise with a 2.36 per cent increase to bin services coming in at $14.

An expansion to the mobile garbage bin service is expected to include 420 new 240L bins and has been budgeted at $16,365.

ASSETS

Asset management is a focus of the proposal with a $5.1m allocation for renewal and replacement of existing assets.

Twenty-seven council vehicles expected to the upgraded or purchased from a $400,000 grader right down to a 6x4 trailer for the sale yards.

Taking into account trade in values just over $1.3m could be spent.