Community feedback shapes final budget
Whyalla City Council has listened to community feedback and adopted a rate rise closer to the Consumer Price Index (CPI) than originally proposed.
When council first asked for community feedback, CPI (a common measure of inflation) was expected to be 3.5%, with a rate rise of 5.3% the lowest of the two options proposed.
Despite inflation rising to 4.9% by the time the budget was finalised, council has managed to keep the final rate rise at 5.3%, which is now only 0.4% above inflation. This represents a quarterly increase of $25.25 on an average residential rates bill (or $1.95 per week).
This reflects community feedback to keep the figure as close to CPI as possible, while also enabling the addition of one extra outdoor staff member to help with maintenance of our city.
Mayor Phill Stone thanked the community for their input, with this year’s Annual Business Plan and Budget consultation seeing one of the highest levels of community engagement in recent years.
"This consultation was important to ensure our final decision was informed by the views and expectations of the community,” Mayor Stone said.
“That feedback has been carefully considered alongside our ongoing costs, and we believe we’ve struck a good balance between the two.
"We’ve been able to keep the rate rise close to CPI while adding one additional staff member to our city maintenance team, aimed at addressing residents’ concerns about the look of the city.
“We’ve been able to implement this in part due to fuel prices moderating over the past couple of months, meaning they will have much less of an impact on Council’s budget. We also consciously held back on project spend in order to keep the rate increase as low as possible."
Mayor Stone said council would be operating at a loss and it would be financially irresponsible -severely impact future budgets and ratepayers - if it kept the rate rise level with (or below) CPI.
“While CPI is a useful measure of inflation, it doesn’t capture all the significant cost impacts that affect council’s budget, particularly things like bitumen and labour that households don’t need to purchase,” he said
“However, we are also more exposed to items increasing faster than CPI – such as electricity, fuel, insurance and water – due to the large amount we need to use, so it’s critical we cover these above-CPI costs to prevent our financial position going backwards.
“We appreciate that our community is experiencing rising costs across the board as businesses and organisations cover their own cost increases. However, unfortunately council is not immune to these increases and also needs to pass these on.
“We don’t have unnecessary expenditure within our budget, and in many cases, budget pressures mean that additional funding - not less - is actually required to deliver current services at expected levels. Despite this, we’ll continue to review services to ensure they’re delivered as efficiently as possible.”
If any ratepayers are having difficulty paying their rates, we encourage them to contact us on 8640 3444 or council@whyalla.sa.gov.au to discuss payment options.
Frequently Asked Questions
Why doesn’t council just reduce spending to keep rates lower?
Council does not have unnecessary expenditure within its budget, and in many cases, budget pressures mean that additional funding, not less, is required to deliver current services at expected levels.
Council continues to review services to ensure they are delivered in the most efficient and effective way possible, with any identified savings reinvested into priority areas. However, maintaining current service levels, improving city amenity and managing increasing costs means some level of rate increase is required.
Council offers a large number of services and operates multiple facilities which are required by the community – you can see a full list here.
Why are rates increasing above CPI?
While CPI is a useful measure of inflation, it doesn’t capture all the significant cost impacts that affect our budget. This includes things that households don’t purchase such, as bitumen and labour. However, Council is also more exposed to some items increasing faster than CPI, such as electricity, fuel, insurance and water, due to the large amount we need to use.. The rate rise factors in CPI of 4.9%, plus cost impacts like wages and maintenance, one additional outdoor staff member, plus deficit reduction.
What does ‘improving city amenity’ mean?
Improving city amenity refers to improving the overall presentation and upkeep of the city, including verge and median maintenance, which are highly visible areas identified by the community as a priority. These improvements are part of a staged approach to ensure services can be delivered at appropriate levels over time.
Why doesn’t council immediately return to a break-even position?
To immediately return to a break-even position in 2026/27 would require a 7.9% increase, which is unaffordable to ratepayers, particularly in the current economic environment. Council has instead adopted a more gradual approach, aiming to return to a sustainable financial position over the next few years while maintaining predictable and manageable rate increases.
How was community feedback used in the final decision?
All feedback received during the consultation period was carefully considered by council before the final Annual Business Plan and Budget was adopted at this month’s Special Council Meeting. Community input plays an important role in shaping council’s priorities and decision-making, including altering the final rate rise to keep it closer to CPI; and introducing an additional outdoor staff member to help address community concerns over city maintenance.