Salisbury Council votes to increase rates by 2.9 per cent to cover surprise solid waste levy increase

Another Adelaide council has voted to increase its rates to cope with an unexpected $2.1 million in extra costs caused by the State Government’s surprise rubbish tax increase.

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Salisbury Council has reluctantly voted to increase its rates to help cover an unexpected extra $2.1 million to dump rubbish at landfills.

Elected members decided to increase rates from a proposed 2.5 per cent to 2.9 per cent to pay an extra $800,000 this financial year and $1.3 million in the 2020-21 financial year.

The council also will use some of its $3.9 million surplus to cover half of the unexpected costs, caused by a surprise 40 per cent increase in the Solid Waste Levy.

Salisbury mayor Gillian Aldridge said council had worked hard to achieve a balanced

solution on the levy increase, which was announced unexpectedly in the State Budget.

“The 40 per cent increase on the Solid Waste Levy came as a surprise to Council at a time when we were finalising our budget for 2019/20,” she said.

“We are mindful of the impact of rates increases on our community and therefore council moved to seek a balance by absorbing half of the added cost.”

Tea Tree Gully Council voted to increase its rates on Thursday from a previously approved 2.7 to 2.9 per cent.

Playford Council will meet on Tuesday night to examine four options hastily put together by staff to cover an expected $534,000 extra it will pay to dump its rubbish at landfill.

The options range from a 2.6 per cent rate increase with no new projects or services to a 4.6 per cent increase to cover new projects and services promised in its draft budget.

Councils across South Australia were preparing to approve their annual business plans when Treasurer Rob Lucas blindsided them with the rubbish tax increase.

Councillors from Playford and Salisbury unite to express their displeasure over the 40% increase in the solid waste levy. Picture: Supplied

Playford councillors met with some of their Salisbury counterparts on Saturday at the Northern Adelaide Waste Management Authority (NAWMA) recycling facility at Edinburgh in protest over the levy hike.

Salisbury councillor Beau Brug proposed a higher rate increase to preserve the council’s $3.9 million operating surplus.

“We sought public feedback on a 2.5 per cent rate increase after working very hard throughout the year on our financial plan,” he said.

“Our rates would have been the lowest of any of our neighbouring councils.

“However, these plans have hit an unfortunate hurdle with a whopping 40 per cent increase with the solid waste levy.”

Cr Brug said staff had calculated “this bin tax” will cost the council an extra $2.1 million over the next two years and $5 million over the next five years.

“South Australian taxpayers are going to be hit by this rubbish bin tax,” he said.

“It is disappointing that the State Government didn’t tell us about it.”

Councillors voted to insert a flyer into rates notices telling ratepayers the increase was higher than planned because of the State Government decision to increase the waste levy.

Elected members received a staff report detailing the increase would cost their council a total of $2.1 million over the next two years, which had not been budgeted.

“It needs to be recognised that this has the impact of reducing the capacity of the council to consider new/unbudgeted initiatives to respond to community needs throughout the year, and will also result in higher borrowings,” it says.

“Similarly council will also need to give consideration throughout the year as to opportunities for increasing non-rate income from existing and new revenue sources.”

The Salisbury report says the immediate impact of the extra rubbish tax of $800,000 “should also be at the forefront of council’s mind as we manage our finances over the coming period”.

Councillors from Playford and Salisbury unite to express their displeasure over the 40% increase in the solid waste levy. Picture: Supplied

“The risk of ongoing increases in the solid waste levy, or other cost shifting from the State Government, will significantly impact on our abilities to deliver in the longer term,” it says.

“Ultimately (it) may impact the community through potential reduction in service, increases in rates above those planned in the long-term financial plan, and/or result in higher debt levels.”

The report said the council’s operating surplus would reduce to $3 million “when factoring in the solid waste levy impact”.

“In forming the financials on this basis council will need to be mindful of the financial impact of any future changes in service level, and consider alternative income sources, such as property development, to enable this impact to be absorbed,” it says.

“Council should also be mindful of the (further) impact into 2020/21 of (another) $530,000 as a result of the solid waste levy increase, as this and any further cost shifting by State Government will continue to erode our financial sustainability.”

Playford councillors also have received a staff report on the financial impact of the solid waste levy increase.

It says the council had allocated for an increase of $32,000 to dump its rubbish at landfills in the next financial year, not the $502,000 it had suddenly been hit with.

Councillors from Playford and Salisbury unite to express their displeasure over the 40% increase in the solid waste levy. Picture: Supplied

“This will take the overall cost for the waste levy increase to $534,000,” it says.

“Given the staging of the increase, the cost impact of $502,000 will apply to 2019/20 and will require a 0.7 per cent rate rise.

“The ongoing impact of the $140 per tonne rate from January 1, 2020, will not be fully realised until 2020/21 and will require a further $342,000, or 0.4% rate rise at that time.”

Staff are presenting four options to councillors for approval at their monthly meeting at Elizabeth on Tuesday.

The councillors — already under public pressure not to increase rates by 3.9 per cent as originally suggested by staff — can vote for a 2.6 per cent increase which will maintain existing services, pay for the extra rubbish tax but have no new projects, including a new Grenville Centre community hub for retirees.

They also can choose between a 3.3 per cent rate increase which will include design work on the Grenville Centre but no other projects, 3.7 per cent for the hub and some new projects or 4.6 per cent which will cover the extra rubbish tax and 19 projects released for public feedback, including the Grenville Centre.