COUNCIL RELEASES A ‘CONSERVATIVE’ DRAFT ANNUAL BUSINESS PLAN FOR 2023-2024
Photo: Wyomi Beach Rock Seawall Stage 2 – Council will spend $2.6m on an extension to the existing seawall, providing a further 345m protection against coastal erosion.
The Kingston District Council has released what it describes as a ‘conservative’ draft Annual Business Plan (ABP) for 2023-2024. Mayor Jeff Pope stated that “the draft ABP has been developed with consideration of the current economic environment and the increasing cost of living pressures on our community.”
“Consequently, there is no change in service levels, including no increase in staffing full-time equivalent numbers, with the budget being determined based on the 2022-2023 operational expenditure plus known increases in electricity, insurance, and employee enterprise agreement costs only.”
In setting the proposed rating position for the ABP, the Council carefully considered several different rate models to ensure the most equitable distribution of rates across the ratepayer base. The ABP has a responsive rating strategy in the face of a continued upward capital valuation trajectory, particularly in the primary production rating category.
“Council has settled on a 6% increase in general rates, which is well below the March (Adelaide) CPI figure of 7.9%”, Mayor Pope said. “Not only that, but we have also reduced the Primary Production land use code from 70% to 63% to minimise the impact of significant and ongoing capital value increases in this sector”.
Other rating changes in the proposed ABP include:
- Counterbalancing valuation increases with a reduction in the rate in the dollar across all land use codes;
- An increase in the differential rates for Marina Berth land use code from 95% to 100% which will prevent a reduction in average general rates and providing an equitable distribution of the rate responsibility;
- An increase in the differential rates for Vacant Land 125% to 135% to discourage land banking and encourage conversion to housing;
- An increase to the minimum rate by 6% to $673.20, in line with the increase in general rates;
- Rate capping rebate provisions, including minimising the number of properties receiving rate increases of more than 12% when compared to rates raised in 2022-2023.
Mayor Pope said, “all of these strategies demonstrate to our community a commitment to equitable general rate increases to ensure all property owners and their respective land use codes have been considered fairly”.
Underpinning the conservative nature of the draft ABP is that there are no new projects that are not known to the community or have not been envisaged or carried forward from previous years. Chief Executive Officer Nat Traeger explained this, saying “this approach is largely because Council is in the midst of developing a new Strategic Plan which will set the recently elected council up for success during their term and beyond.”
“With this business-as-usual approach, roads remain our highest capital expenditure cost, with some 68% of our $1.77m renewal budget being for sealed and unsealed roads, mostly in the rural areas.”
“With anticipated funding support of $495k through the Special Local Roads Program, we are looking at resealing the entire length of the Cape Jaffa Road, which comes at a total cost of $990k.”
“As well as an extensive road network and enviable parks and gardens to maintain, for a small regional council, we also have our fair share of coastal issues to deal with”. Ms Traeger said, “coastal infrastructure and adaptation strategies are forever present as a major challenge for us, particularly as we work through the immediate priorities in our Coastal Adaptation Strategy”.
In 2023-2024, of the budgeted $3m capital spend on new assets, $2.6m is for the Wyomi Beach Rock Seawall project, which the Council has fortunately secured $1.953m federal government funding. This project will see the existing rock seawall extended 175m to the south and 170m to the north, providing a total rock seawall of 757m.
Whilst the Council believes it has developed a responsible and conservative ABP, it is now up to the community to provide their feedback on what is proposed for 2023-2024. Feedback is now open and will be until 15 June 2023.
How to provide feedback:
- Emailing info@kingstondc.sa.gov.au
- On-line feedback form
- Completing a hard copy of the feedback form available at Kingston District Council Office
- Writing to Council at PO Box 321 Kingston SE SA 5275
Community Information sessions will be held online and at the Council Office as follows:
- Monday 5June 2023 5.00pm online via Microsoft teams
- Tuesday 6June 2023 5.00pm in person, 29 Holland Street Kingston SE
- Registration is required for these sessions; please email Nat Morris nmorris@kingstondc.sa.gov.au or phone 08 8767 2033.
Access to the 2023-2024 Draft Annual Business Plan, or to complete the on-line feedback form, please visit this link:
Other Media Points of Interest:
Challenges
- State government owned jetty, the long-term lease, its condition, and anticipated cost to repair
- Climate change & coastal adaptation
- Understanding the condition of our infrastructure assets and having appropriate infrastructure management plans
- Requirements to maintain and improve infrastructure assets to acceptable standards, including roads, footpaths, buildings, stormwater drainage and Community Wastewater Management Scheme (CWMS).
- Balancing community expectations with a small rate base and large marine & coastal issues
- Continuing to reduce the budgeted operating deficit budget in the short term and working towards a balanced budget which is consistent with the Long-Term Financial Plans and its underlying assumptions
Priorities
- A new Community Wastewater Management System (CWMS) is imperative for the future growth of Kingston and presents as the largest and most expensive infrastructure project ever delivered by the Council
- Stage 2 Rock Seawall Extension Project at Wyomi Beach
- Resolution of the well documented childcare shortage for the Kingston community
Influences
- Commitment and contractual obligations at the Cape Jaffa Marina
- Upward trajectory in capital valuations, particularly in the primary industry rating sector
- Negotiated Enterprise Bargaining Agreements and an increase to 11% for employer Superannuation Guarantee contributions (up from 10.5% in 2022-2023)
- Council faces higher cost increases due to the capital-intensive nature of the goods and services purchased and fuel prices are significantly impacting operating costs
- Impact of Coronavirus and other economic/environment factors including the cost-of-living increase and product and service unavailability
- ENDS -
Contact:
Nat Traeger
CHIEF EXECUTIVE OFFICER | KINGSTON DISTRICT COUNCIL
Phone: 0408 809 712 | E: ceo@kingstondc.sa.gov.au