Edward River Council voted to pass a revised budget that will result in a $2.41 million deficit in the general fund, several community projects being put on hold and a capped rate rise of 4.4% for 12 months only.
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Ratepayers will have a reprieve from the recommended Special Rate Variation rise of 7% per year for six years, for now.
Chief Executive Officer Phil Stone said keeping the rates as low as possible however, was not sustainable.
“Community feedback told us that consideration of a Special Rate Variation is currently a step too far, so we are listening and responding to what our community is experiencing right now,” he said.
“It is an unsustainable position in the long run and we will need to consider how our community assets like roads, water infrastructure, heritage buildings and recreational facilities are maintained for use in the coming years.”
Mr Stone said projects now on hold include “establishing a regional theatre at the Town Hall, some tourism development work and the swimming pool masterplan”.
Cr. Pat Fogarty, who opposed the budget made an impassioned plea for her colleagues to ‘listen harder’ to the community.
“We have been delivered a very strong message by the community that this budget is not in their best interest,” she said.
“The requirement of a Special Rate Variation will place great hardship on many of our constituents, stifle growth and become a burden to our business community.
“I believe an unsustainable budget threatens the very foundation of our council and community. I was not elected to burden this community with the inevitability of lodging a Special Rate Variation in the coming year,” Cr Fogarty said.
“I speak strongly in opposing this budget and operational plan, underpinned by a structural deficit of $2.4m in the General Fund. A deficit that will burden this community for years to come.”
Mayor Peta Betts said she was grateful for the work the councillors had put in to the budget, saying they had met monthly, sometimes weekly since February to come up with the final budget and operational plan.
Cr Fogarty said council had not listened hard enough.
“We have tinkered around the edges to deplete community spending in finding savings but at the heart of the issue is a $2.29 million increase in employee costs from when this council took over the reins in 2022,” she said.
“Whilst at the same time the previous council pre-empted a warning similar to that given recently by the ARIC committee that efficiencies and savings needed to be found.”
Deputy Mayor Paul Fellows objected to Cr Fogarty’s opposition of the budget, saying he took exception to the term ‘tinkered around the edges’.
“It is an absolute insult to all of us. We worked really hard on this,” he said.
“I wont accept that at all.”
Cr Fellows also said he was tired of hearing about the recommended Special Rate Variation.
“I’m getting very, very tired of hearing that.
“I won’t say it will never ever happen, but it won’t be happening this year. And there is a fair chance, if we can get ourselves sorted in February, it may not happen next year.
“This is a great budget,” he said. “I think if we come together in February (next year) and put the boxing gloves on, we are really going to have a good time with this.
“I’ve got a few things up my sleeve to pull that general fund back even more,” he offered, but did not elaborate.
Cr Burge, Cr Fogarty and Cr Marc Petersen all expressed their concerns with a lack of detail in the budget.
Cr Petersen said he had asked for further breakdowns including how funds are allocated but that information was not provided.
“How we can say this (budget) is great when we cannot say how this money is allocated is a problem,” he said.
“I am not comfortable with this budget.”
Cr Shirlee Burge also objected to the budget, saying she had serious concerns how young families in particular will wear the increased costs.
“Younger people, who’ve just bought their first home have already suffered massive interest rate rises. I worry about their financial situations.”
Cr Burge said some ratepayers will see a $600-$700 rate rise.
Mayor Betts surprisingly claimed ‘for a lot of people, they may get cheaper rates,“ due to the valuation process of the valuer-general.
Most councillors debated the budget extensively, with Mayor Betts, Cr Fellows, Cr Fawns, Cr Moore and Cr Sampson all supporting the resolution.
Councillors Fogarty, Burge and Petersen voted against the budget. Cr Harold Clapham was unable to attend the meeting.
“While it has been a hard decision for Council to make, and not a unanimous one, councillors listened to our community and engaged in robust and respectful debate as a group,” CEO Stone said.
“We are grateful to community members who took the time to review our documentation and comment on plans and scenarios. I can assure you that we will be vigorously pursuing every opportunity to identify savings and efficiencies within the organisation and explore every avenue for grant funding to help bring deferred projects forward,” he said.
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