GAWLER Council could be forced to raise its service fees or abandon projects in reaction to the State Government’s 40 per cent solid waste levy hike.
Last week’s State Budget included a significant increase of its solid waste levy imposed on South Australian councils to $110 per tonne of rubbish, rising to $140 per tonne from January.
The decision was made without the consultation of local government, with many councils currently in the process of finalising their 2019/20 budgets and annual business plans.
Gawler Council will be hit with an extra $126,000 cost as a result of the increase, bringing its levy contribution to $715,000.
Mayor Karen Redman was hopeful the council would not increase its rates to absorb the financial hit, but said service fees could rise and projects could be cut.
“There’s a number of options that council has to manage this hit to our bottom line, which we hadn’t planned because we weren’t told about it,” she said.
“I personally don’t support further rate rises, I think that’s the wrong strategy, I think we need to cut our cloth.
“We have a small surplus of just over $80,000, so that would go I would assume, or we look at what we cut.
“Do we cut half our footpath program?
“For the first time we’re putting in a hard waste pickup service, that’s worth $120,000 a year – is that what goes?”
The State Budget papers indicated the increased funds created by the levy hike will go to restoring West Beach and other regional coastal areas.
Ms Redman said waste levies should be spent on waste management initiatives.
“When you hear it’s being used for battery storage which doesn’t have any connection to waste management or when you hear West Beach is going to be the beneficiary, I just don’t see the connection and I think that’s lax integrity by this State Government,” she said.
“I think local communities deserve better.
“We know that money which is in the waste levy fund is used to offset the bottom line for the State Budget.
“That is not what it was there for, it is not there to make the budget look good and make it look like we’re in a surplus when they’re not.”
Local government minister Stephan Knoll acknowledged the levy increase would be a hit for councils, but the State Government was delivering other waste management programs to encourage recycling and minimise landfill in the budget.
“There is actually $24 million we have to help councils and industry set up a better recycling process,” he said.
“We’re not shying away from the fact that this will have an effect on council budgets, but there is $24 million to help make it easier for councils to divert away from landfill.”