Draft 2026-2027 Annual Business Plan, Budget and Long-Term Financial Plan

While a legislative requirement under Section 123 of the Local Government Act 1999, an Annual Business Plan and Budget is a council’s key annual operational and financial planning document. It outlines the key activities, projects, and services we intend to provide for the upcoming financial year, where our revenue comes from, and how we plan to spend it. It ensures we deliver the services our community values most.

The Plan is developed within the framework of our Strategic Community Plan and our Long-Term Financial Plan 2024–2033. Council has modelled various financial scenarios to ensure we remain sustainable in the long term while meeting current community needs.

While the Annual Business Plan and Budget looks at the next 12 months, the LTFP looks a decade ahead. This ensures that today’s decisions, like investing in major infrastructure, don’t create a financial burden for future generations of Prospect residents.

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

In April 2026, the national annual CPI was 4.6%, up from 2.4% in February 2025 - an increase of 2.2 percentage points. 

CPI affects Council because we pay for electricity, fuel, and contracts that are often linked to these rising costs.

Beyond CPI, Council is also affected by construction costs rises. Much like housing costs, the expenses associated with constructing roads, footpaths, and renewing community and sporting buildings have increased. Council must also accommodate federally mandated 0.5% annual increase to the Superannuation Guarantee.

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.

The draft Plan proposes an average residential rate rise of 3.5%.

Council drafts the budget for the services being offered in line with community expectations and projects the cost of delivery. After we determine the total funding needed (once grants and other income are accounted for), we calculate a "Rate in the Dollar".

• 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 = your rates

There are multiple ways in which you can share your thoughts on the 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 26 May from 5.30pm - 6.30pm 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

Once consultation closes, all feedback received will be presented to Council in a formal Community Engagement Report. Once presented to Council, this report will be available on Council’s Engagement Hub.

If you follow the project on Engagement Hub or provided contact details as part of your submission, we will send you the Community Engagement Report and the final decision made by Council.

You can contact Leta Northcott, Manager Finance, with any questions relating to the 2026-2027 Draft Annual Business Plan, Budget and Long-Term Financial Plan. Email Leta at admin@prospect.sa.gov.au or call 8269 5355.