MOUNT Gambier City Council will look to absorb the financial implications of the 40pc solid waste levy increase announced in Monday’s State Budget, seeking to avoid a direct impact on ratepayers.
The State Government revealed levy prices are set to increase from $50 a tonne to $70 a tonne for regional councils as of January 1, 2020.
The levy hike comes as South East councils are in the final weeks of preparing and adopting financial plans for the 2019/20 term.
According to the State Government, the increase will fund a $4m four-year grant program which will help country councils with coastal works.
While councils are still investigating the impacts on service delivery, City Council chief executive Andrew Meddle said there is no need to panic.
“The size of the impost on council is not huge as we are really pushing our green waste and recycling options,” Mr Meddle said.
“We are not going to be reactive due to something that happened within the state budget and our response at first base is going to be how we can save roughly $100,000 a year and what we can do to reduce the cost.”
Due to formally adopt next financial year’s rates next Thursday, Mr Meddle said council will do it “on the basis of its budget” which has recently been put for public consultation.
“Rates are expected to stay at the 4.5pc increase in terms with council’s long term financial plan,” Mr Meddle said.
“Waste is an emotive issue that councils must work towards on behalf of the community.”
Currently council is exploring alternative avenues to offset the levy costs, including expanding its greenwaste service to the commercial sector.
“We are looking at being smarter and seeing what we can get into the recycling bin rather than the landfill bin,” Mr Meddle said.
“I would not have thought there will be a long-term affect on Mount Gambier residents but there may be a short term spike.”
Expected to put a report to elected members at next week’s meeting, Mr Meddle foreshadowed a recommendation to stick with the set rate, adding it was ultimately up to councillors to determine the outcome.
Mr Meddle said he was disappointed at the use of the solid waste levy Mr Meddle said state government has “not shown leadership” on the levy’s potential.
“There is not a lot of leadership shown on how the levy could underpin entrepreneurial activity to deal with the impact the China Sword policy has had on the state,” he said.
Limestone Coast Local Government Association chief executive Tony Wright touted the increase as “a bit ironic” given the State Government’s review into council efficiencies.
“One of the things the productivity commission is looking at is council trends and costs and we hope when they undertake the review they take these charges into consideration,” he said.
Mr Wright said it was too early to determine whether the hike would result in local government service cuts but said councils across the region were considering the impact just weeks before annual budgets are due to be formally adopted.
“The timing is difficult and councils are obviously concerned about the increase and how that will affect their budgets,” he said.
“Like any business they will need to balance their costs.”
According to the State Government, the increase will fund a $4m four-year grant program which will assist country councils with coastal works.
State Opposition leader Peter Malinauskas said the increase was “another example” of the Marshall Liberal Government imposing higher costs on households.
“Every single South Australian who has a wheelie bin will face a tax hike through an increase in council rates,” he said.
“Steven Marshall is hitting South Australians’ hip pocket – when they drive their car, catch public transport, go to the hospital or even put out their rubbish.
“We need a government which is genuinely committed to easing cost of living pressures on families, instead the Liberals are jacking up taxes wherever they can.”
