2024-2025 Draft Annual Business Plan and Budget

FAQS

The Annual Business Plan and Budget is Council’s key annual operational and financial planning document.

It sets out the key activities, projects, and services we plan to provide in the upcoming financial year, our sources of revenue, and how we intend to allocate our budget.

The 2024-2025 Draft Annual Business Plan and Budget aligns with our services to ensure we continue to deliver efficient services that our community values.

The 2024-2025 Draft Annual Business Plan has been developed in the context of Council’s strategic planning framework, its Strategic Community Plan, and the Long-Term Financial Plan 2024-2033. Council has considered numerous options, and modelled the financial implications of their decisions to ensure the Council’s long term financial sustainability.

The Consumer Price Index (CPI) measures the average change in prices paid for a fixed basket of goods and services over time. It serves as a crucial tool for gauging inflation and tracking changes in the cost of living.

The CPI affects Council budgets as it includes costs that Council must pay, such as electricity and fuel. Additionally, many Council contracts are linked to the CPI. As a result, when the CPI rises, Council costs can increase as well.

The annual Adelaide Consumer Price Index (CPI) for March 2024 was 4.3%.

Aside from the CPI, Council is also affected by construction costs rises. Like housing costs, expenses for constructing roads, footpaths, and renewing community and sporting buildings have increased. Council must also accommodate federally mandated Superannuation Guarantee contribution payments, which is increase half a percent each year.

Council annually implements expenditure management, efficiency savings, and continuous improvement measures to offset these high costs and ensure that the cost increase for delivering existing services does not exceed the CPI. For the upcoming year, the Council's anticipated costs and savings measures will result in a proposed average residential rate rise of 4.15%.

The total funding pathway (earnings/income) for the 2024-2025 Draft Annual Business Plan and Budget is $47.0m made up as follows:

  • Rates 59%
  • Capital grants and subsidies 19%
  • Borrowings 12%
  • Operating grants and subsidies 4%
  • Statutory charges 3%
  • User charges 2%
  • Investment and Other Income 1%

The total expenditure (spendings) proposed in the 2024-2025 Draft Annual Business Plan and Budget is $46.4m made up as follows:

  • Capital Expenditure – New 28%
  • Employee wages and associated costs 24%
  • Materials, Contracts & Other Expenses 24%
  • Capital Expenditure – Renew 16%
  • Loan repayments 4%
  • Operating Projects 2%
  • Finance Charges 2%

Council drafts the budget for the services being offered in line with community expectations and projects the cost of delivery. After considering the income received from grants, user charges and statutory fees, the balance of required funding is sourced from rates.

Rates are calculated as follows.

  • Rate in the Dollar:
    • Total Rates revenue required/Total City Valuation (as provided by the State Valuer General) = Rate in the Dollar
  • Your Rates:
    • Rate in the Dollar x your property valuation = Rates

Yes, the draft proposed average residential rate rise is 4.15%. This increase is required to fund the plan as presented.

As part of the 2024-2025 Draft Annual Business Plan and Budget, Council has funded the continuation of weekly FOGO collection in its current model (1 collection area per week), until 30 June 2025.

We are currently seeking community input on alternative approaches for expanding weekly FOGO collection:

  • Option 1: Weekly FOGO Collection city wide rollout, at an additional associated rate increase of 1.05%, or
  • Option 2: Weekly FOGO Collection expansion to add an additional two days (three days in total), at an additional associated rate increase of 0.5%

To provide your feedback on these approaches, please take the survey on Engagement Hub.

The proposed budget for this project to improve car parking availability around the Village Heart is $300,000, which would require an additional 1.15% rate increase to fund. It may include expenditure to create protuberances, signage, diagonal parking, trial parking options, high turnover spaces for delivery drivers, bicycles, motorbikes and accessible car parks.

The parking infrastructure funding would be used for traffic and parking capital infrastructure solutions in the 2025-2026 financial year, to be informed by the Integrated Transport Plan which will be undertaken in the 2024-2025 financial year. The proposed budget for this project is $400,000.

There are multiple ways in which you can share your thoughts on the 2024-2025 Draft Annual Business Plan and Budget:

  • Survey or written submission online, or via email to admin@prospect.sa.gov.au
  • Printed survey or feedback form at Payinthi, 128 Prospect Road, Prospect
  • Public Meeting
    • Tuesday 21 May from 6pm – 7pm at Payinthi, 128 Prospect Road, Prospect
    • No RSVP required

Your feedback will be provided to Council and may inform their final decision when adopting the final 2024-2025 Annual Business Plan and Budget. Your thoughts will also act to guide us for future strategies, budgets and projects.

We will collate all feedback into a report that will be presented to Council for consideration as part of finalising the 2024-2025 Annual Business Plan and Budget. This feedback may also be used to help inform future strategies, budgets and projects.

You can speak to Andrew Alderson, Manager Finance, with any questions relating to the 2024-2025 Draft Annual Business Plan and Budget. Email Andrew at admin@prospect.sa.gov.au or call 8269 5355.