GAWLER Council’s debt could rise by $3 million next financial year to more than $22 million, according to its 2020-21 draft budget and annual business plan.
Elected members will deliberate the first draft of council’s draft budget and business plan at a special council meeting tonight.
It is set to include an operating deficit of $448,000, the first deficit council has run in six years.
Council’s debt is also set to rise from an expected $19.5 million at the end of June to $22.6 million in the 2020-21 financial year.
The draft budget also accounts for a three per cent rate rise for existing rate payers.
A report to be tabled at tonight’s meeting stated the current financial projections were based on calculations made before the coronavirus pandemic.
“However, given the health emergency we are currently facing relative to the COVID-19 outbreak, it is expected that there will be impacts on council’s financial operations whilst the health emergency remains,” the report read.
“This could include, for example, increases in council’s Financial Assistance Grant, as provided by the Federal Government, being less than estimated (or frozen) as a result of the major economic stimulus packages now being funded by the Federal Government in the wake of the national health emergency.”
The council will assume control of the completed Gawler East Link Road – to be known as Schomburgk Drive – during the next financial year, which is set to bring with it a $500,000 increase to expenses via depreciation.
The $1.8 million final stage of the Murray Street Upgrade project, the new $1.8 cycling track linking the Barossa Trail and Stuart O’Grady Bikeway and a $539,445 fix of the Gawler Aquatic Centre change rooms is set to be paid for in the upcoming budget.
Gawler Mayor Karen Redman said the council was “investing in growth” with its proposed budget.
“Council has delivered operational surpluses for the past six years however our investment in growth requires council to consider operating deficits for the next two years, after which it is forecast to return to a balanced budget or surplus position,” she said.
“Council’s investment in growth delivers key infrastructure and services that sets Gawler up for a sustainable and liveable future.”
She added the deficit had been planned for in council’s long term financial plan for “a number of years”.