Adelaide City Council to investigate $1.3m of savings from its external grant, sponsorship and strategic partnerships programs
A raft of much-loved city festivals, activations and business programs may face devastating or program-ending funding cuts as Adelaide City Council looks to lower its rates.
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A raft of much-loved city festivals, activations and business programs may face devastating or program-ending funding cuts as Adelaide City Council looks to lower its rates.
The council is investigating potential savings of $1.3m from its external grant, sponsorship and strategic partnerships programs to drop proposed rates from 6.9 to 5.9 per cent.
The programs have a budget of $7.6m and includes funding for events such SALA, Adelaide Film Festival, DreamBIG, Feast Festival, Tasting Australia, WOMADelaide and Fringe.
The strategic partnership element supports the business sector and groups such as Business Events Adelaide, StudyAdelaide and Renew Adelaide.
In an unprecedented move, the heads of several major events have written to the Lord Mayor and councillors warning funding cuts would have “devastating” impacts on the future of festivals and cost the state millions of dollars in economic activity.
WOMADelaide director Ian Scobie said its four-day music festival in Botanic Park would be “significantly affected” by any cuts to the “contracted level of support” of $75,000 in 2024-25.
“Any reduction to this level of support would have a substantial impact on the festival’s budget,” he said, adding the festival delivers $37.1m in spending for the city.
Adelaide Festival chairwoman Tracey Whiting said its $360,000 partnership was crucial to the festival’s “identity and reputation as one of the world’s great international art festivals”.
While Adelaide Fringe chairwoman Kate Costello said they could not “accommodate a cut in sponsorship” – $300,000 in 2024-25 – as its costs had risen by 30 per cent.
Ms Costello said the long-running arts festival provided a $58m boost to the city with fees of about $1m paid to the council by Fringe venues and hubs.
Business Events Adelaide chairman Ian Horne said they had secured 123 events last financial year, delivering $218m in economic benefits to the city.
Mr Horne said their members of CBD hotels, restaurants, bars and retailers would “all suffer” and would likely lead to job losses if their funding of $300,000 is reduced or abolished.
“This economic loss would be a significant blow to CBD hotels … and would also derail critically important hotel and venue infrastructure developments and aviation growth,” he wrote.
The council’s draft 2024/25 budget proposed a rate rise of 6.9 per cent, however councillor Phillip Martin last week successfully pushed for it to be lowered to 5.9 per cent by cutting costs from its grant, sponsorship and strategic partnerships programs.
Cr Martin told The Sunday Mail the savings would equate to about $1.3m in cuts.
“I cannot rule out the possibility that the administration will run the ruler over the entire three budgets and tell the council they can only find a lesser amount,” he said.
“It’s really premature for anyone to be concerned about particular programs until we have a series of recommendations and the elected body can weigh up whether or not any proposed reductions are viable.
“If you’re asking ratepayers for more money you have the responsibility to ask the question can we do better in the management of their funds that we distribute on their behalf to external organisations.”
Cr Martin said any savings, which he requested be identified by the June 18 City Finance and Governance Committee, must be endorsed by the council.
“I think I can safely speak on behalf of every elected member in saying that we understand the value to the city’s art and culture, and to our economy, of every single festival,” he said.
“All that has happened is that the council has agreed at committee to ask the administration to have a look at the budgets.”
Adelaide Economic Development Agency chairwoman Nikki Govan compiled the letters for the council and wrote any reduction in funding would hinder its abilities to promote Adelaide to visitors and investors, and it as Australia’s premier festival and event destination.
AEDA, which is a subsidiary of the council, has stripped all of its $400,000 funding for WellFest in the draft budget, as well as $35,000 for fashion industry support.
The draft budget will be discussed at Tuesday night’s meeting and released for public consultation on April 26.
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