ADELAIDE Plains Council is set to slash its expected operating deficit by more than $690,000 in its 2020/21 budget, if a range of savings are passed by council later this month.
The council’s Audit Committee met last Wednesday to discuss an updated version of its upcoming budget, which was altered following community consultation.
Elected members recommended the full council chamber endorse the updated budget at its next meeting on June 22.
The updated budget sees the council’s expected operating deficit drop from $694,000 to $1332, mainly off the back of a $413,000 reduction in depreciation expenses and a $225,000 cut in employee costs.
There will be no hike to the council rate-in-the-dollar, with new homes and property valuation growth set to see APC’s rate revenue jump by 1.9 per cent.
Council’s projected borrowings is also set to be less than first envisaged, although it will still borrow $983,887 in the next financial year.
Rising property values in the council area – due to residential growth in Two Wells and the Northern Connector slashing travel times to the region – mean average rates for primary production properties will increase by 3.1 per cent.
One public consultation response, from Renata Conti, said having to pay more in rates during the COVID-19 pandemic was especially tough.
“I was also angry that, with COVID-19, rates for primary production were going to increase by 3.10 per cent,” she said.
“Times are tough and to be hit with this as well. Come on have some compassion, do the right thing.”
Similar problems hit APC ratepayers last year, when a wide survey of the area by the valuer-general saw property valuations increase by an average 6.7 per cent.
A report presented at the Audit Committee meeting said any increase in rates to be paid is based solely on a rise in property value.
“Any increase in the average rate for primary production is purely attributable to the valuation change of those properties,” the report read.
“Any 3.10 per cent increase is the average increase and the actual rate increase depends on how much the valuation of individual property has increased.
“For example, if the valuation of a Primary Production Property has decreased, then the rates also will be reduced by the same percentage as the valuation reduction.”
