LIGHT Regional Council has forecast a deficit of $452,000 for next financial year, as it moves to release it draft budget and long term financial plan for public consultation.
The draft budget incorporates a no rate in the dollar increase to rates, but will still see council generate a rates income of about $17.23 million from almost 8000 rateable properties.
The average residential property will pay $1579 in rates, with the minimum rate still set at $875.
According to a staff-prepared report, the operating deficit is a variance of $159,000 again its Long Term Financial Plan (LTFP), however, council’s operating results remain sustainable over the long-term.
“A deficit operating result is forecast for 2020/2021, due to the impact of COVID-19 Recovery Provision and removing or deferring proposed new initiatives and business cases with a back to basics approach to developing the draft budget,” the report states.
“…Essentially a break even position is forecast for 2021/2022, a deficit is budgeted for financial year 2022/2023 prior to a return to surplus in 2023/2024 to complete the four year budget cycle.”
Council has proposed a capital expenditure of $6.65 million for 2020/21, of which $4.33m is allocated to asset renewal programs and $2.2m is allocated to new or upgraded assets.
New projects include the acquisition of land in the Western Barossa to be preserved and enhanced by a conservation group ($175,000); and, the activation of Kapunda’s 5 Schillings Estate with the provision of infrastructure along Kapunda Street and Sir Sidney Kidman Boulevard ($1.31m).
Meanwhile three new projects will be funded in 2020/21 under council’s ‘operating program’, at a cost of $104,000.
They include the ongoing costs associated with the acquired Western Barossa land ($42,246 to be spread out evenly across the next four years); the Allendale North Recreation Ground development ($10,000); and council’s Solar Energy Finance Scheme (cost neutral by year three).
The Solar Energy Finance Scheme will support eligible residents to purchase and install solar systems to be paid back to council without interest, over an agreed time.
Council has budgeted an initial $60,000 in 2020/21 on the scheme, and a return of $20,000 each year for the next three years, with all the money repaid reinvested in new installations.
Other expenses include $430,000 on the building and structures program, including for the replacement or upgrade of several toilet blocks; $314,000 on stormwater and bridges, and $856,000 on resealing rural or township roads, such as Station Street in Wasleys and Schaefer Street in Freeling.
A further $2.95 million has been budgeted for the rural re-sheeting program, which includes contributions towards the new construction of East Terrace, and College, Turretfield and Oates Roads.
Council will start the 2020/2021 financial year with $3.694m of existing long-term debenture loan borrowings, which includes loans that under-write assets owned by community organisations, and which are repayable by those community organisations.
Further borrowings relating to the Gawler Water Reuse Scheme (GWRS) and the Accelerated Infrastructure Program will be paid-off with the proceeds of the planned sale of the GWRS in 2022.
The public consultation period ends 5pm, Wednesday, June 17, with an online meeting to be held on Tuesday, June 16 to hear submissions.
