MOUNT Gambier ratepayers will see a cumulative increase of around $150 on their average rates across three years as City Council strengthens its war chest for the proposed sport and recreation centre’s operational cost.
Preliminary estimations by council has found the average residential rate of $1235 will increase by $49.40 in 2019/2020, totalling in a yearly rate of $1284.
In 2020/2021, average residential rates will rise from $1235 to $1284.
Council’s estimated 4.5pc increase will culminate in a $53.40 increase to the 2021/22 average residential rate, which is estimated to increase to $1388.
City council chief executive Mark McShane said the assumption did not include growth in new properties, which was .42pc in 2018/19.
“The average residential rate for 2018/2019 is $1188.00,” he said.
“Given council has not received new valuations and or growth figures, all we can do is calculate 4pc increase on average residential for the next three years.”
Mr McShane said maintaining a 4.5pc rate level would allow council to afford the $1.4m net operating cost.
He said the estimated annual running cost of $1.4m was based on existing sport usage.
“Utilisation modelling is based on existing sport usage with the $1.4m reflecting a medium sensitivity,” he said.
“Sensitivity analysis figures at other recently built facilities have consistently exceeded outcomes modelled on high usage scenarios as communities embrace the new opportunities facilities provide.”
Mr McShane said while charges for basic usage had been benchmarked and included in financial modelling, fees had not been finalised.
He floated a differential user system as being a possibility.
“For some activities a per person fee may apply (swimming), for other it may be per court per hour and others it may be per hour or day (rooms for event hire),” he said.
Mr McShane said the possibility of subsidies, discounts and imposing a different fee on non-city council ratepayers were yet to be determined.
