HAVING to operate at a “larger deficit than originally anticipated” for the upcoming year has seen a Riverland council include a property rate rise in its draft annual budget.
Renmark Paringa Council last month released its draft 2020/21 Annual Business Plan and Budget, indicating a potential 2.4 per cent rise in residential property rates.
Renmark Paringa director corporate and community services Tim Pfeiffer said with the increase, residential rates for local residents would still remain “between 37 and 70 per cent” below average properties in similar sized councils.
“It is a CPI increase which is based on the March quarter of CPI for Adelaide, so it effectively maintains us at that level,” Mr Pfeiffer said
“Our rates are still significantly lower than our neighbouring councils.
“In providing the essential services we provide, just like any other business we are subject to inflation (and) it keeps us up with that inflation.”
Based on average residential property values the rate increase is estimated to equate to $1.30 per week.
Mr Pfeiffer said a lower – or zero per cent – increase, coupled with a forecasted budget deficit of more than $900,000, would have long-term negative effects on the community.
“A lower increase wasn’t really an option without putting council at a significant deficit,” he said.
“As it is right now we are running a deficit in 2020/21, as is probably the case for a lot of businesses.
“In the draft budget it’s budgeted at being a $916,000 deficit. To go for a significantly lower increase would have meant a much greater deficit for council.
“That would have had further impost on the community in the future.”
Mr Pfeiffer said budget funding for the Renmark Paringa Network of businesses was aimed at reinvesting council resources to stimulate the local economy.
“We know there have been businesses struggling through COVID-19 to various degrees,” he said.
“We committed $70,000 of our 2020/21 budget to the Renmark Paringa Network, which approximately equates to 1 per cent of our budget.
“That is for the Renmark Paringa Network to then go and invest into local businesses and get some really good uplift.
“It’s the community reinvesting in our economy.”
Renmark Paringa councillors eventually approved a 1 per cent rate increase last year, after a 2.5 per cent increase was initially planned in the 2019/20 budget.
Mr Pfeiffer said elected members would make the final decision regarding a rate increase.
“We haven’t approved the final budget, we’ve only approved the draft,” he said.