PLAYFORD Council has locked in its 2020/21 Annual Business Plan and budget with a 0.45 per cent rate rise.
Elected members met last Tuesday night to finalise the upcoming budget, which was delayed due to financial uncertainty for all councils amid the COVID-19 pandemic.
The endorsed budget will see a 0.45 increase in rate revenue and deliver an operating surplus of $3.9 million.
During debate, three councillors attempted to include a zero per cent rate rise in the budget, but it was shut down by the remaining 12 elected members.
One of those councillors, Akram Arifi, said financial pressures brought on by the COVID-19 pandemic should have resulted in no increase to council rates.
“During the public consultation, I door knocked many residents in my Ward and there was an overwhelming response not to increase the rates for this financial year,” he said.
“Many residents expressed their concerns for their family members and their neighbours who have lost their jobs and are currently struggling financially as a result of COVID-19 pandemic.”
Elected members also introduced a debt ceiling of $175 million into the budget, meaning council borrowings will not exceed $9 million in the coming financial year.
Playford is South Australia’s most indebted council with borrowings reaching $166 million at the end of the 2019/20 financial year.
At the meeting, responses to the budget’s public consultation period were also tabled, with the council receiving 16 verbal and written submissions.
One response, from Playford mayoral hopeful Shaun Reardon, said the budget “appears to, at last, be a financially responsible approach to its business plans”.
“It is pleasing to see that after a history of council deficits and increasing levels of debt, some financial control is at last being shown with a budgeted surplus in this year’s draft budget,” he wrote.
“During these current tough times when a number of councils are being able to set budgets without the need to increase rates, it is disappointing to see that City of Playford do need to put rates up.
“However, it is understandable with the history of poor financial management which has plagued the City of Playford and acknowledged by council earlier this year.
“After spending millions of ratepayers money on projects like the (Elizabeth) CBD, it’s good to see that new projects in this year’s budget are focused on areas of direct benefit for ratepayers.”
