Mount Gambier Council 2021/22 Budget under fire for Wulanda Recreation & Convention Centre costs

Mount Gambier’s 2021/22 Budget has been adopted despite its flagship project being labelled “a great, big heavy chain and anchor around the city council”.

The Mount Gambier Council 2021/22 Budget has been adopted, but not before the its flagship project came under fire.

Councillor Paul Jenner raised concerns about the council’s ability to fund any major projects outside the Wulanda Recreation & Convention Centre in the next seven years.

At Tuesday night’s special meeting he said multimillion dollar loans were stretched to their limits, annual depreciation was set to explode by $1.1m to $8.95m and finance costs would increase from $213,000 to $1.16 million in the 2022/23 Budget.

Artist's impressions of Wulanda Recreation & Convention Centre. Picture: Design Inc Co-op

“We still have some work to do,” Cr Jenner said.

Outside the chamber he said $10m in loans had been “gobbled up” by the $57 million project.

Cr Jenner said Wulanda was “totally” to blame for years of operating deficits indicated by the Long Term Financial Plan, set to peak at $2.29 million next financial year.

“It’s like having a great, big heavy chain and anchor around the city council for the next seven years,” he said.

“It’s weighing us down to be able to do major projects.”

Cr Jenner said the project was “mammoth in size” and could prevent council taking advantage of government incentives requiring it to match funding allocations.

“The community wanted a swimming pool that had a cover on it and in a heated area and a modern, up-to-date, basketball stadium with four or five courts,” he said.

Mount Gambier councillor Paul Jenner. Picture: Louise Agnew Photography

Mount Gambier Myor Lynette Martin. Picture: Louise Agnew Photography

“What is currently being built is fantastic, but at what cost?”

“The federal government and the state government are looking at shovel ready projects now.

“I can see those state and federal moneys drying up pretty quick after Covid and the City of Mount Gambier is going to be going on its own merit, and it’s going to be tough.”

Cr Jenner said it was disappointing hard rubbish program had not been debated in the budgeting despite a successful trial in 2020 and was “furious” an application for $500,000 in road grants had been “walked away from”.

He said the lack of funds could limit opportunities to take a 14 acres “wasteland” at the Railway Lands in a positive direction with the unknown cost of having the land transferred to council possibly raging from zero to millions.

General manager shared services Darren Barber told the meeting the long term projections included “very conservative” Wulanda operational modelling but the final numbers remained unknown.

“The funding for Wulanda is secured,” Mr Barber said.

“The end, we don’t know at the moment, obviously because the project is running through.

Artist‘s impressions of Wulanda Recreation & Convention Centre. Picture: Design Inc Co-op

“We are confident there are the funds there going forward in the Long Term Financial Plan to ensure to ensure the ongoing services for the community.”

Mr Barber also clarified council had committed to a maximum annual rate increase of 4.5 per cent and did not have to adopt the full percentage each year.

Mayor Lynette Martin noted Cr Jenner’s “personal concerns”, twice reminding the chamber it was “building the largest infrastructure project the city has ever seen”.

“We have been discussing this since February,” Mayor Martin said.

“We have had, I believe, plenty of time to address these issues.

“The average residential ratepayer will pay $1312, which includes the waste service charge.

“Council’s average residential rate is below the average of South Australian, which was $1662 for metropolitan and $1471 for rural.”

Steven Perryman sympathised with Jenner’s frustrations with the budgeting process, saying the budget was “sound” but it could take three to four years for the community to appreciate the value of Wulanda.

Mount Gambier councillor Steven Perryman. Picture: Louise Agnew Photography.

Mount Gambier Deputy Mayor Christian Greco. Picture: Louise Agnew Photography.

“There’s no getting around when you do a big project like that, it does come with some compromises in other areas of the budget,” Cr Perryman said.

Deputy Mayor Christian Greco supported the budget but said it would be “fantastic” if the hard waste service could be incorporated in a budget review while also questioning the council’s ability to match funds if a big project came up.

The Annual Business Plan and Budget and rates declaration were adopted with Cr Jenner calling a division on both motions, he and councillor Kate Amoroso voted against the budget with him alone voting against latter.