Charlotte Varcoe
KINGSTON District Council is expected to operate in a deficit until the end of its long term financial plan – which expires in 2033- due to low revenue.
It comes as community consultation for its annual business plan and budget continues.
Elected members opted to release the document to the public during a special meeting held last week.
Within the document, details of the proposed 2024-2025 budget include a rate rise of 5.8 per cent and ongoing sand management.
Sealed and unsealed roads renewal remains the highest capital expenditure cost for the district with 77 per cent of council’s $1.78m renewal budget being allocated towards the topic.
The document states other key priorities include progressing a new early learning centre on the grounds of the Kingston Community School and finding a sustainable and financially viable solution to re-opening the Maria Creek Boat Launching Facility which has remained closed for five years.
Priorities outlined in the document include a new community wastewater management system, stage two of the Wyomi Beach rockwall extension, a childcare centre and reducing the impact of sand management at Cape Jaffa.
Kingston District Council chief executive Ian Hart said the increase to rates would mean “different things for different people”.
“The business plan is based on the long term financial plan which provides a collection of rates to meet those aspirations,” Mr Hart said.
“The life of the long term financial plan does not see council return to a surplus and therefore it is an overall modest budget which is very much focusing on maintaining current services and asset renewal programs.”
Mr Hart said the business plan also reflected the “low population and revenue base” the council had.
“We do not want to provide an unfair cost on any part of our community and this council has been going through a very robust salary discussion over the past three months on the budget and rating,” he said.
“We looked at a whole bunch of different rating scenarios and we are aware of massive increases to primary production properties and council has tried to offset that by reducing the differential percentage without there being an increased cost unfair on any other part of the community.”
Mr Hart said council would be operating in a deficit until the expected end of its long term financial plan due to the low level of revenue it would have to spend to maintain what it currently had.
“The council is grappling with how it continues to provide all the services and amenities that the community needs and wants at a realistic cost,” he said.
Mr Hart also mentioned council was working with the Local Government Association on receiving technical advice for its community wastewater management, hoping to go to market in the coming weeks.
“We should have a better understanding of what all that means and then get the modeling done before we receive how it is going to be funded and financed,” he said.
“Council is also currently working with a contractor to do some reinforcement of the Wyomi Beach Rockwall and there has been some difficulty in sourcing the appropriate rock material but there will be an ongoing sand nourishment program over winter to protect that area of the coast.”
He said despite there being a number of major projects in the pipeline for council, it was difficult to do anything more due to having a small budget unless grant funding was received.
Community consultation will remain open until June 7.
