IF Gawler Council was to describe its draft 2019/20 budget in one word, it would be: ‘sensible’.
That’s the message Gawler mayor Karen Redman and her administration are hoping to convey to the Gawler community to justify its anticipated three per cent rate rise for the upcoming financial year, which, if endorsed, will cost ratepayers an extra 90 cents per week.
The revenue accrued through the rate increase will support an expected net $8.4 million of capital works over the next 12 months, while ensuring the council retains a modest $89,000 operating surplus.
Of note is the $2.4 million lump sum council is required to pay to the State Government towards the upgrade of Potts Road, as part of the $60 million Gawler East link road project due to be completed in early 2020, and also the $1.2 million it has committed to revitalising Walker Place.
Ms Redman said residents only need to look at the projects council is financing over the next year to see why a three per cent rate hike is justified.
“I’d say look at our investment in the town, look at the fact we’re a growth council; we think it’s a sensible rise,” she said.
“I think if we had no rate rise, that’s setting ourselves up for failure in the future.
“In the past there was a real fear of raising rates and not spending, and then I think council fell into a position where they had to have larger rate rises to try and catch up.
“It’s far better to have sensible increases that we can all afford, so that our future ratepayers aren’t hit with the burden (of making up the difference).
“By having small rate rises we can invest, we can maintain our properties, we can do some projects, we can keep up with what we need to do and be a successful local government.”
Council had initially forecast an operating deficit of around $291,000 for 2019/20, however that figure was revised to a surplus after council learned last month it would receive nearly $390,000 via the Federal Government’s Roads to Recovery program.
Ms Redman said council was unlikely to lose that funding should Labor win government on May 18.
“I think it would be a very brave new government to remove money for roads, particularly regional roads,” she said.
Council’s finance and corporate services manager Paul Horwood said it was important ratepayers viewed the latest budget as part of a long-term vision for Gawler over the next five to 10 years.
“There is a more long-term view to the whole budget process, and not just each year in isolation,” he said.
“With the rate rises of three per cent, and by keeping the debt under control, come five years’ time we’re hoping we’ll have the financial capacity to do the next iconic project.”
Elected members deliberated on the draft 2019/20 budget at a special meeting last night, with a decision on whether to release it for public consultation being made after The Bunyip’s print deadline.
