Edward River Council’s controversial draft budget and long-term financial plan will be voted on today.
Changes to the budget and long-term financial plan have been made after more than 30 written submissions were received following a series of public meetings where ratepayers raised concerns with proposed rate increases.
The revised budget is now forecasting a deficit of $2.41 million in the general fund and a $118,000 deficit from the Edward River Village.
Council’s general manager Phil Stone has recommended councillors note that the long-term financial plan’s ‘Scenario 2’, which includes special rate variations for six years is the recommended scenario.
However, the draft resolution states “in response to community feedback, the long-term financial plan Scenario 1, which includes a rate rise of 4.4% this year is the scenario which the revised budget has been planned”.
A special rate variation in the next financial year has not been ruled out and councillors have been warned supporting Scenario 1 will result in the capital works program being below what is necessary to maintain assets such as roads.
The reduction in the proposed deficit has been achieved in part by using an ‘optimistic approach’ for grants and contributions.
Generally, only known future grants are included in the forward projections, however the revised budget is relying on a four percent increase to the Financial Assistance Grant according to the council report.
The plan also makes provisions for borrowings for the airport project and the Edward River Village.
Fees and charges, separate to rates are set to rise by 6.5% across the board.
A summary of feedback from public submissions has been provided to councillors. Many submissions were received about the Edward River Village.
Ratepayers sought clarity on the ‘exit fee’ – proposed to be 35% of the ‘buy in’ or lease fee of $475,000 - and the costs to ratepayers for the project.
“Urgently review the village’s viability. This is not council’s area of expertise. There is enormous scope for budget blow out and low demand,” one submission warned.
“I 100% support the concept of the Seniors Living project, but the current high costings is grossly too high for the local elderly community to buy in to,” another stated.
“The retirement village project is outrageous. Council has gone into debt rather than cut expenditure on ridiculous projects,” said another.
“Who in their right mind is going to pay $475,000 for a tiny unit in town and not actually own it?” Asked another.
Council’s response to the feedback was “The project is well-progressed, with all site works now complete ahead of planned Stage 1 dwelling construction.”
Other feedback was received about council’s planned recycling and FOGO collection, requests for a woodfire oven in the Waring Gardens, expenses at the library, the Town Hall, airport, staffing and roads.
Council will also vote today on increasing the mayor and councillors’ fees to the maximum fee allowable, being a 3% increase on last year.