Draft 2025-2026 Annual Business Plan, Budget and Long-Term Financial Plan

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 Draft 2025-2026 Annual Business Plan, Budget and Long-Term Financial Plan (the Plan) aligns with our services to ensure we continue to deliver efficient services that our community values.

The 2025-2026 Draft Annual Business Plan, Budget and Long Term Financial 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 annual Adelaide Consumer Price Index (CPI) for March 2025 was 2.2%.

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.

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 3.9%.

The total funding pathway (earnings/income) for the Plan is $51.1m made up as follows:

• Rates 57%
• Capital grants and subsidies 23%
• Borrowings 12%
• Operating grants and subsidies 4%
• Statutory charges 2%
• User charges 1%
• Investment and Other Income 1%

The total expenditure (spendings) proposed in the 2024-2025 Draft Annual Business Plan and Budget is $51.58m made up as follows:

• Capital Expenditure – New 25%
• Employee wages and associated costs 22%
• Materials, Contracts & Other Expenses 26%
• Capital Expenditure – Renew 20%
• Loan repayments 3%
• Operating Projects 2%
• Finance Charges 2%

No new borrowings are planned for the 2025-2026 financial year. However, council intends to utilise a cash advance facility as needed during this time. This facility provides flexibility, enabling funds to be accessed when required and repaid when surplus funds become available.

Council is hoping to fund 1/3 of the total $10m project. Currently a $1m loan has been included in the Long Term Financial Plan for year 2026-2027 with the remaining funds coming from delaying other proposed capital expenditure.

Without an approved Masterplan, the Council is uncertain about the specific works required in the coming years. The proposed capital program includes $1 million for 2026/2027 and $2 million for 2027/2028, but these funds have not yet been allocated to particular works. Once Council approvals are in place and costs are determined, the Long Term Financial Plan will be updated accordingly.

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 3.9%. This increase is required to fund the plan as presented.

Your feedback will be provided to Council and may inform their final decision when adopting the final 2025-2026 Annual Business Plan, Budget and Long Term Financial. Your thoughts will also act to guide us for future strategies, budgets and projects.

There are multiple ways in which you can share your thoughts on the 2025-2026 Draft Annual Business Plan, Budget and Long Term Financial Plan:

• Survey or written submission online, or via email to admin@prospect.sa.gov.au
• Printed survey at Payinthi, 128 Prospect Road, Prospect
• Public Meeting
  • Tuesday 27 May from 6pm at Payinthi, 128 Prospect Road, Prospect
  • No RSVP required, however we encourage you to submit any questions you have prior to the meeting by sending them to admin@prospect.sa.gov.au

You can speak to Leta Northcott, Manager Finance, with any questions relating to the 2025-2026 Draft Annual Business Plan, Budget and Long Term Financial Plan. Email Leta at admin@prospect.sa.gov.au or call 8269 5355.

We will collate all feedback into a report that will be presented to Council for consideration as part of finalising the 2025-2026 Annual Business Plan, Budget and Long Term Financial Plan. This feedback may also be used to help inform future strategies, budgets and projects.