Draft Annual Business Plan & Budget 2024/2025

Each financial year we prepare an Annual Business Plan and Budget. The business plan maps out the services and infrastructure we will deliver over the coming year, including what roads we will allocate money towards to reseal or resheet and what infrastructure will be installed or upgraded. The budget calculates what funds we need to be able to deliver these projects, which we use to calculate what rates will be for the coming year.

Councils must prepare a business plan and budget each financial year, under section 123 of the Local Government Act 1999. We publish our draft annual business plan, budget and Rating Policy together in one document, as they are informed by each other.

The document is presented in 6 parts:

1. Introduction (page 4–11)
   An opening message from the Mayor and CEO, information on how the document was created and its relationship to other plans and strategies. We also provide a list of Acts and Regulations referred to and common terms used in the document.
2. Overview (page 12–21)
   Information about Adelaide Plains Council and our region. We also provide an overview of some of the commitments made in our Annual Business Plan and Budget 2023/2024.
3. Business plan (page 22–25)
   Our key annual operational planning document. It describes what projects and services we plan to deliver in the financial year.
4. Budget overview (page 26–63)
   An overview of the budget. It describes how we will finance the projects and services we plan to deliver in the financial year, what has influenced the budget, how rates will be calculated and provides an overview of our income and expenses.
5. Draft Budget 2024/2025 (page 64–69)
   Our key annual financial planning document that contains our Budgeted Financial Statements.
6. Appendices (page 70–91)
   Our draft rate revenue and policy in detail and a copy of the Essential Services Commission of South Australia (ESCOSA) report from 2023.

You may be looking for some more specific information:

• Summary of the business plan and budget: pages 18–20
• Performance measures: page 21 and 62
• Services we provide: pages 22–24
• How we spend every $100 of revenue: page 28
• Loan borrowings: pages 50–52
• Rates: pages 54–61
• Draft Budget 2024/2025: pages 64–69

How is this document made?

The business plan and budget has been developed over many months of meetings and workshops with Council Members to find the balance of meeting the demands of our community with the challenge of needing to deliver more.

The budget has been developed in consultation with Council Members and our community, our Infrastructure & Environment Committee, Audit & Risk Committee and Council management. It is informed by our Strategic Plan 2021–2024, Long Term Financial Plan, Infrastructure & Asset Management Plan and other related strategic plans. We also consider several significant factors, both internal and external, including CPI predictions, superannuation increases and population growth.

We apply ‘zero based budgeting’ by reviewing our current actual level of income and expenditures and compare it with proposed activities for the next financial year to estimate the appropriate level of income and expenditure.

What if I’m not happy with the draft annual business plan or budget?

You can provide feedback during the consultation period. Feedback received will be provided in a report to Council for consideration.
The consultation period opened on Wednesday 12 June 2024 and closes at 9am Tuesday 9 July 2024.

Have your say

What can I provide feedback on?

You can comment on any part of the draft annual business plan and budget, including proposed rates and charges, the Rating Policy, the capital works program, or proposed projects.

Will my feedback actually make a difference?

Your feedback will be considered by Council Members before the final business plan and budget is adopted. Adjustments may be made to the final budget to ensure an appropriate balance is struck between community expectations and a financially responsible budget.

What is an average rate excluding growth?

The average rate is calculated by dividing the total general rates income with the total number of properties (rateable assessments). This may not reflect the actual change of rates you may see.
Excluding growth means this figure doesn’t include new or transitioning ratepayers (like vacant blocks that are now new dwellings, or properties with significant development).

Why do you collect rates? How are they decided?

Council rates are collected by SA councils to fund essential services and facilities for their communities. Almost everyone who owns property in SA is required to pay rates to their local council. This includes homes, farms, vacant land and businesses.

In SA, council rates are a form of property tax, not a fee for service. Our Annual Business Plan and Budget provides detail on our income and expenses each financial year, including how this will affect rates.

What will be the actual changes to rates?

Council rates are determined by multiplying the capital value of a property (decided by the Valuer-General) by the rate in the dollar applicable to the property (decided by Council). The average rate does not show the actual general rate rises. Actual rate rises are determined by a combination of other factors such as;
a) Development/improvement on the land resulting in the value of the property being increased; or
b) General valuation increase/decrease by the Valuer-General due to market conditions.

A breakdown of changes to the actual general rates by percentage of rateable properties is available on page 59 of the document.

Do rates have to increase?

Similar to households, Council is also faced with high inflation (CPI) and high interest rates in delivering services to our community.

The CPI affects our budget as it includes costs that we must pay, such as materials, electricity, fuel, or other services we require to function. Superannuation Guarantee contribution payments have been increased by the Federal Government. We are also affected by construction costs – similar to housing costs, there have been substantial increases to the cost of constructing roads, footpaths and renewing community and sporting buildings.

We also need to have sufficient funds to reduce our loan borrowings and pay interest on loans that we obtained in previous financial years to seal 30km of unsealed roads (freight and tourism routes).

What do my rates actually pay for?

Your rates pay for a lot of different services and programs – more than roads and rubbish. They also fund infrastructure, planning and development, public health and safety, flood and stormwater infrastructure, strategic planning and governance, libraries, open spaces and community programs and events.

Page 28 of our document includes a summary of where every $100 of revenue (including grant funding, fees and charges) goes to.

Why are rates different to other councils?

In setting rates, councils are governed by the Local Government Act 1999 which provides flexibility for councils to make decisions that suit their local community. The way one council structures its rates may differ to another council. Each council also provides different services, and are effected by growth.

Our region has experienced a lot of growth in the last several years. Rates are not a fee-for-service and we need to focus more on just roads, rates and rubbish to ensure we can meet the wants and needs of a rapidly growing population whilst maintaining our vast asset base.

I am struggling to pay my rates. What can I do?

We appreciate that everyone is affected by increasing costs, not just Council.
If you are struggling to pay your rates, please contact us as soon as possible to discuss the different options available to you.

☎ 08 8527 0200