Alexandrina Council says it has responded to community concerns by reducing operating expenses by around $270,000 and cutting a proposed 8.3 per cent rates rise to 7.9 per cent as part of its endorsed Annual Business Plan and Budget for 2024/25.

At a Special Budget council meeting On Monday 25 June, the council also removed or delayed more than $2.3 million worth of capital expenses and resolved not to proceed with the additional rate rise of 1.25 per cent to deliver the Township Greening Strategy and Action Plan.

The forecast deficit was also lowered from $4.6 million to $4.1 million for the 2024/25 financial year.

“It was a long night with robust debate, but as a Council I am confident that we have listened to the concerns of our community, reduced the rate rise and made some hard decisions about projects while steering a path towards the long-term sustainability of Council,” says Mayor Keith Parkes.

“This has probably been the most challenging budget I have experienced in my 14 years on Council.

“The recent revaluation of our assets in the current high-inflation environment has exposed us to significant increases in depreciation costs of $5.3 million.

“Passing this Budget is the first step in our Long-Term Financial Plan to get back into surplus.

“Last night we took onboard the feedback from our community, and we went through the list of proposed new initiatives and looked at some existing projects to find savings by either removing or delaying them.

“There are no new major projects. We’re not going to do design work on upgrading the Encounter Bikeway because we don’t have the funds to match any grants that might become available, and we voted against the additional rate rise of 1.25 per cent to deliver the on-ground Township Greening while we progress with the development of the Strategy and Action Plan.

“We also asked our Administration to target $3 million in savings and efficiencies for future years, which is on top of the $5 million in savings already found in the past 18 months.

Mayor Parkes says the council is reviewing its services, including Business Alexandrina and the Business Hub, Visitor Information Services, Centenary Hall, Strathalbyn Hall, Customer Service, Community Development, Vehicle Fleet, Wooden Boats, Field Services and Libraries. 

“However, we need to assess the impact of reducing services before we make snap decisions.

“This is a tough budget, but Council is committed to a long-term strategy for financial sustainability.

“We appreciate that many in our community are being affected by cost rises across the board and if any ratepayer is experiencing financial hardship, we do encourage them to reach out to Council administration to access financial assistance measures.”

Projects removed or delayed by Council resolution at the Special Council Meetinginclude the following:

• Agribusiness Officer to support the objectives of the Alexandrina Sustainable Agriculture Round Table - $70,631 removed.
• Enhanced Wayfinding Signage Strategy - $50,000 removed.
• Christmas holiday lifeguard Services at Goolwa Beach - $28,000 removed.
• Encounter Bikeway upgrade detailed design - $350,000 removed (*$9,625 operational).
• Sugars Beach, Hindmarsh Island, revised concept designs - $500,000 funded in 2023/24 Budget delayed (*$27,500 operational).
• Goolwa Yacht Club Fence – $30,000 removed (*$1,650 operational).
• Clayton Bay BMX Track - $40,000 removed (*$2,200 operational).
• Armfield Slip Viewing Platform - $30,000 removed (*$2,650 operational).
• Pipers Crest Public Amenity Strathalbyn - $575,000 removed (*$31,625 operational).
• Chapman Road Public Amenity Middleton - $700,000 removed (*$38,500 operational).
• Excelsior Parade Pathway - $160,000 removed (*$8,800 operational).

*Operational impacts include costs of borrowings.

Besides the changes made Monday night, the council also took into consideration new and revised information since the draft 2024/25 Business Plan and Budget went out to public consultation.

This included council decisions to conduct a one-month trial of extended opening hours at the Strathalbyn Community Swimming Pool (an additional $30,000); a contribution for Mount Compass Netball Club’s court resurfacing to match grant funding ($50,000); and removal of the Strathalbyn Sound Shell Project ($250,000 capital, $9,923 operational).

There was also an additional $293,000 in rates income from property growth and an extra $458,000 in Roads to Recovery Federal Grant Funding.

Additional costs of $49,000 from the Fleurieu Regional Aquatic Centre and an additional $102,375 in remodelled interest rate expenses were also endorsed.