GRANT District Council’s 2.3pc general rate increase for next financial year is potentially up in the air following a special meeting being scheduled next week to thrash out the issue.
In an extraordinary turn of events, the council yesterday received a notice of motion to revoke Wednesday’s 2018/19 formal budget adoption.
It is understood council staff have begun revised financial modelling for the financial year and the special meeting could be held as early as this Monday.
Council’s budget blueprint was pushed through on Wednesday amid controversial circumstances given a last minute bid by Mayor Richard Sage to halt the formal adoption process.
Mr Sage claimed additional cost pressures and the introduction of rate capping had not been factored into the budget and warned the general rate income should be higher.
Other costs pressures include additional costs in waste management and a possible increase in funding for the struggling South East Animal Welfare League.
Council’s foreshadowed operating deficit of $54,000 is also considered a sticking point.
With the lengthy debate threatening to spill over at times on Wednesday, Mr Sage claimed the budget did not account for the projected rise in waste management costs and should not be adopted in its current form.
“I am really concerned that if we do not look at the $70,000 increase this year and not find savings somewhere, we are going to be chasing that figure forever and a day,” Mr Sage said.
“The cost of waste will continue to grow and you have not allocated any money towards it. If we do not allocate money, how are we going to find it.
“There is no money in the wishing well with the government coffers.”
He pleaded for the elected members in the chamber to consider the matter.
Raising concerns the revised rate financial modelling would hold up the process, Cr Alan Hill argued the budget should be adopted at the meeting and for council “to get on with the job”.
“We could stand here all night … we have a budget in front of us and personally I am happy with it,” he said.
Following a motion to defer the budget failing, Mr Sage interjected and again highlighted the fact there was not enough money in the budget to pay for waste management.
This prompted Cr Hill to declare the mayor was “out of order”.
“You had no right to say that,” the elected member said.
Earlier in the discussion deputy mayor Brian Collins also expressed concerns staff and councillors had “done all this work” on the budget and it was too late for it to be stalled at the last minute.
He said “surely” council could find some savings throughout the financial year to cover the additional costs.
But acting chief executive officer Graeme Maxwell said his personal viewpoint was council had been conservative in developing the budget with the 2.3pc proposed rate increase.
“This is spot on with Consumer Price Index (CPI), but you have got some additional stuff in the budget which you are trying to absorb without making changes elsewhere,” Mr Maxwell said.
“One amount that jumps out at me is in the increase in waste disposal costs associated with the recycling drama that we are facing at the moment.
“You have made no provision to fund that. We have also not seen the detail in the rate capping next year. You may find it even more difficult next year to make changes.”
Council’s deputy chief executive officer Jane Fetherstonhaugh warned council would have to justify raising rate revenue above CPI, which was a direction in the council’s long-term financial plan.
