Council Advice 2022-23

Under the new Local Government Advice Scheme established through the Local Government Act 1999, the Essential Services Commission has released advice for the first 15 of the State’s 68 councils. Under the Scheme, the Commission is an advisory body, providing advice to all councils across a four-year cycle.

Councils are long-term businesses with ongoing service provision obligations and long-lived assets. From an overall community perspective, it is important that council rates are set at levels as low as sustainably possible consistent while:

providing the standard and breadth of services that ratepayers value, and
ensuring that councils have robust, long-term asset management, financing and operational plans which allow them to manage their assets efficiently and effectively over the long term, so as to sustain the delivery of those services and minimise their lifetime cost.

In that context, the advice relates to the appropriateness of council’s long-term financial plans, infrastructure and asset management plans and revenue sources as outlined in the council’s funding plan. It is an advisory scheme, identifying both risks and areas of good practice for councils to consider in their planning processes, with decision making remaining the hands of the councils.

Having reviewed, in accordance with the statutory scheme, available material in relation to first tranche of 15 councils, the Commission has several initial observations.

First, it is positive to see that several councils have taken the approach of bringing together their annual business plans and budgets and their long term financial plans, so that there is alignment and the impacts of decisions taken through the annual budget process can be understood in a long-term financial context.

Second, given the number of significant unexpected events in recent years, including COVID, floods, bushfires and the impacts of inflation, it is prudent for councils to have processes to annually reassess the forecasts adopted in planning and operational documents. A further key consideration in reviewing plans should include the alignment of asset renewal requirements in the various asset management plans and the timely inclusion of new assets into the asset management plans.

Third, growth in the number of ratepayers and services is a key planning issue for councils. Councils need to constantly monitor demand in their areas to ensure services are not stretched when the population or nature of the area changes. At the same time, councils need to consider the risk of spending ahead of development and potentially placing a burden on the existing ratepayers, a balance is required between the costs of infrastructure necessary to meet community expectations and potential increases in costs.

Finally, future rate expectations need to take account of affordability for ratepayers and minimise the impact on the community where possible. It is prudent for councils to constantly review their internal costs with a view to finding efficiencies and savings to keep rates as low and affordable as possible over the long term, while demonstrating a commitment and ability to meet community needs and value.

The Commission thanks the councils for providing relevant information to assist the Commission in preparing the advice.

The advice is generally based on information available to the Commission as at 15 February 2023.

The approach to the scheme is detailed in the Commission’s Framework and Approach – Final.

Adelaide Hills Council 2022-23

The Commission finds the Adelaide Hills Council’s financial performance and position is sustainable with historical and projected operating surpluses and the forecast renewal of its infrastructure assets to continue to underpin its strong financial performance without the need for further significant rate increases. However, there are opportunities for improvement in several asset management planning areas.

The Commission recommends the Adelaide Hills Council make nine changes to its strategic management plans to ensure its financial sustainability and ratepayers’ confidence they are paying the right level of rates for council services.

The advice comes in response to April 2022 changes to the Local Government Act giving the Commission advisory powers to the State’s 68 councils which inform their decisions on rates and give ratepayers and other stakeholders an independent assessment of councils’ plans. The scheme provides advice only and is expected to add value across communities.

Recommendations for the Adelaide Hills Council, one of 15 councils reviewed in 2022-23 and to be reassessed in four years’ time, are:

Continue to review its inflation forecasts in its budget each year.
Focus on constraining cost growth in its budgeting.
Consider a new asset management plan for building assets, such as sport and recreation facilities, including desired service levels.
Complete its planned Stormwater Asset Management Plan, with consideration of desired service levels.
Finalise its Community Wastewater Management System Asset Management Plan to reflect cost changes in the 2023-24 Long-term Financial Plan, to include input from the community and desired service levels.
Report actual and projected cost savings in its annual budget, to show evidence of constrained cost growth and efficiency across its operations and service delivery.
Review the estimates of the life of assets and their valuations which feed into forecast rates of asset consumption in its strategic management plans.Review and consider limiting future above-inflation increases on residential rates, to reduce any emerging cost-of-living stress in the community.
Review the rationale for a cap on rate increases in its next annual business plan and consider the community’s capacity to pay for increases.

This advice for the Adelaide Hills Council in 2022-23 is available below:

Local government advice – Adelaide Hills Council - Advice

For further information, refer to the attachment below:

Local government advice – Adelaide Hills Council – Attachment

Adelaide Plains Council 2022-23

The Commission finds the Adelaide Plains Council’s financial position is sustainable with a small operating surplus achieved historically and growing surpluses forecast. The Council’s projected improvement to its financial performance is reliant on a period of service consolidation, at a minimum, and continued rate increases above inflation. However, the future sustainability of the Council is strongly linked to its expectations regarding the growth in the community.

The Commission recommends the Adelaide Plains Council make eight changes to its strategic management plans to ensure its financial sustainability and ratepayers’ confidence they are paying the right level of rates for council services.

Recommendations for the Adelaide Plains Council, one of 15 councils reviewed in 2022-23 and to be reassessed in four years’ time, are:

Review its long-term financial plan annually including its 10-year projections and all relevant assumptions to better inform its decision-making and consultation processes.
Review the rateable property growth forecasts in its budget projections each year to ensure that they remain current and do not create a need for additional rate increases to generate the same level of projected revenue.
Report cost savings in its annual budget, to show it is achieving efficiency across its operations and service delivery.
Improve transparency and consistency of borrowing assumptions in its long-term financial plan, particularly when calculating net lending or borrowing as per the Uniform Presentation of Finances.
Consider including bridges, plant and equipment assets in new or existing asset management plans to support prioritisation of spending on renewal in its long-term financial plan.
Review asset management plan assumptions for accurate required asset spending and better alignment with allocations in its long-term financial plan, including estimates for asset lives and valuations.
Review and consider limiting future increases above inflation on its average residential rates to reduce emerging cost-of-living pressure on the community.
Consult directly with its community about future average rate increases and service levels.

This advice for the Adelaide Plains Council in 2022-23 is available below:

Local government advice – Adelaide Plains Council - Advice

For further information, refer to the attachment below:

Local government advice – Adelaide Plains Council – Attachment

Barunga West Council 2022-23

The Commission finds the Barunga West Council’s financial position at risk of being unsustainable with continued operating deficits resulting from its revenue base, including rates revenue, being stretched to meet the service needs of its recent infrastructure growth. The infrastructure growth appears to have reasonable community support, although the Council has historically underspent on the renewal of its asset stock and has accumulated a ‘backlog’ of renewals as a result. The Council’s projected improvement to its financial performance is reliant on a period of service consolidation, and continued rate increases above inflation.

The Commission recommends the Barunga West Council make six changes to its strategic management plans to ensure its financial sustainability and ratepayers’ confidence they are paying the right level of rates for council services.

Recommendations for the Barunga West Council, one of 15 councils reviewed in 2022-23 and to be reassessed in four years’ time, are:

Provide greater transparency in its long-term financial plan by clearly identifying annual inflation assumptions to its projected revenue and spending.
Focus on constraining costs in its budget.
Report actual and projected cost savings in its annual budget, to show evidence of constrained cost growth and efficiency across its operations and service delivery.
Adhere to its long-term financial plan principles to renew assets rather than spend on new or upgraded infrastructure.
Review asset management plan assumptions to ensure they include an accurate picture of spending on assets and better align with its long-term financial plan including asset life, valuation estimates and the communities desired service levels.
Review and consider limiting future rate rises to reduce emerging cost-of-living pressure on ratepayers in consultation with the community.

This advice for the Barunga West Council in 2022-23 is available below:

Local government advice – Barunga West Council - Advice

For further information, refer to the attachment below:

Local government advice – Barunga West Council – Attachment

City of Burnside 2022-23

The Commission finds the City of Burnside’s financial performance and position is sustainable with consistent small operating surpluses achieved in the past 10 years. While it has maintained service levels, the City of Burnside has increased its residential rates consistently above inflation over the past 10 years.

The Commission recommends the City of Burnside make six changes to its strategic management plans to ensure its financial sustainability and ratepayers’ confidence they’re paying the right level of rates for council services.

Recommendations for the City of Burnside, one of 15 councils reviewed in 2022-23 and to be reassessed in four years’ time, are:

Consider better clarity on inflation assumptions, distinct from real impacts, in its long-term financial plan projections.
Review its inflation assumptions for next financial year given the potential for higher short-term inflation outcomes, followed by a return to long-term averages.
Continue its focus on constraining costs in its budgeting.
Continue the good practice of reporting actual and projected cost savings in its annual budget, to show how it achieves efficiency across operations and service delivery.
Continue to review asset management plan assumptions to ensure they include an accurate picture of spending on assets and better align with its long-term financial plan including asset life and valuation estimates.
Review and consider limiting future average rate rises to reduce emerging cost-of-living pressure on the community.

This advice for the City of Burnside in 2022-23 is available below:

Local government advice – City of Burnside - Advice

For further information, refer to the attachment below:

Local government advice – City of Burnside – Attachment

City of Port Lincoln 2022-23

The Commission finds the City of Port Lincoln’s financial position to July 2023 is sustainable however improvement in its future financial performance is reliant on continued rate increases above inflation. It should constrain the extent of further rate increases, ensure transparent budgeting, manage its cost base efficiently, renew its asset base to meet sustainable service levels, and plan its asset needs appropriately to improve its sustainability.

The Commission recommends the City of Port Lincoln make eight changes to its strategic management plans to ensure its financial sustainability and ratepayers’ confidence they’re paying the right level of rates for services provided.

Recommendations for the City of Port Lincoln, one of 15 councils reviewed in 2022-23 and to be reassessed in four years’ time are:

Review inflation assumptions related to wages and materials and provide more transparency on its “custom” assumptions in its forward projections to return to long-term average inflation from July 2024.
Focus on constraining costs in budgets.
Report cost savings in annual and projected budgets to show evidence it is achieving efficiency.
Review forecast cash reserves in in the context of its financial sustainability outlook.
Adhere to long-term financial planning principles to fund asset renewal and limit future spending on asset upgrades while consulting with the community on desired service levels
Review asset management plan assumptions to ensure they include an accurate picture of spending on assets and better align with its long-term financial plan including asset life and valuation estimates.
Review property growth forecasts in annual budgets to reduce pressure on future rate increases.
Review and consider limiting future rate rises to reduce emerging cost-of-living pressure on ratepayers by consulting with the community on service levels.

This advice for the City of Port Lincoln in 2022-23 is available below:

Local government advice – City of Port Lincoln - Advice

For further information, refer to the attachment below:

Local government advice – City of Port Lincoln – Attachment

City of Prospect 2022-23

The Commission finds the City of Prospect’s financial position is sustainable, although this is reliant on continued growth in rate contributions, largely to fund its projected spending on the renewal of its asset base. The City of Prospect long term financial plan forecasts conservative operating expense growth, and the Council has reviewed its services and factored in material savings to its recurrent budget. However, this is a much lower rate of cost growth than has been achieved in the past and incorporates a significant asset renewal expenditure program.

The Commission recommends the City of Prospect make six changes to its strategic management plans to ensure its financial sustainability and ratepayers’ confidence they are paying the right level of rates for council services.

Recommendations for the City of Prospect, one of 15 councils reviewed in 2022-23 and to be reassessed in four years’ time, are:

Continue to review its inflation forecasts in the budget and forward projections annually.
Continue to report cost savings and efficiencies in its future budgets, to show its commitment to achieving efficiency across operations and service delivery.
Review asset management plan assumptions to ensure they include an accurate picture of spending on assets and better align with its long-term financial plan including asset life and valuation estimates.
Finalise and adopt its asset management plans across different asset categories and publish to its website.
Review the rateable property growth forecasts in its budget projections each year to ensure they do not create a need for additional rate increases to generate the same level of projected revenue.
Consider reducing future rate increases and proposed capital expenditure, in consultation with its community and in the context of desired service levels, to minimise cost-of-living pressure.

This advice for the City of Prospect in 2022-23 is available below:

Local government advice – City of Prospect - Advice

For further information, refer to the attachment below:

Local government advice – City of Prospect – Attachment

City of Salisbury 2022-23

The Commission finds the City of Salisbury’s financial outlook is sustainable with forecast conservative operating surpluses. The Council expects to continue renewing its asset base at appropriate levels, but it will rely on future rate increases above inflation to help fund current high infrastructure and service investments.

The Commission recommends the City of Salisbury make nine changes to its strategic management plans to ensure its financial sustainability and ratepayers’ confidence they are paying the right level of rates for council services.

Recommendations for the City of Salisbury, one of 15 councils reviewed in 2022-23 and to be reassessed in four years’ time, are:

Continue to review its inflation forecasts in its budget and projections which may be higher in the short-term before returning to the long-term average.
Focus and review cost constraints in budgeting, including removal of any projected capital expenditure not tied to costed projects to reduce the need for future rate increases.
Ensure it publishes reports on community consultation about large infrastructure projects which will be rate-funded.
Report cost savings in the budget to show it is achieving efficiency across operations and service delivery.
Develop and publish a risk management plan for Salisbury Aquatic Centre including an annual review of recurrent spending needs and its impact on Council’s operating capacity and amount of rate contributions.
Review its projected borrowing repayments in its long-term financial plan to possibly spread repayments over a longer period to reduce the amount of required contributions from ratepayers to meet repayments in the short to medium term.
Review asset management plan assumptions to ensure they include an accurate picture of spending on assets and better align with its long-term financial plan including asset life and valuation estimates.
Review the new and upgraded asset expenditure projections with consideration of the service levels desired by the community.
Review and consider limiting future minimum and average rate rises above inflation, particularly on ratepayers in categories with lower capacity to pay, to relieve cost-of-living pressure on the community.

This advice for the City of Salisbury in 2022-23 is available below:

Local government advice – City of Salisbury - Advice

For further information, refer to the attachment below:

Local government advice – City of Salisbury – Attachment

City of West Torrens 2022-23

The Commission finds City of West Torrens’ financial position is sustainable with projected operating surpluses and the forecast renewal of its infrastructure assets to continue to underpin its strong financial performance, without the need for further significant rate increases.

The Commission recommends the City of West Torrens make six changes to its strategic management plans to ensure its financial sustainability and provide confidence to ratepayers that they are paying the right level of rates for council services.

Recommendations for the City of West Torrens, one of 15 councils reviewed in 2022-23 and to be reassessed in four years’ time, are:

Provide greater transparency in its long-term financial plan by clearly identifying annual inflation assumptions to its projected revenue and spending.
Continue to review its inflation assumptions in its forward projections from July given the potential for higher short-term inflation followed by a return to long-term averages.
Continue to report its cost savings and efficiencies in its future budgets, to show efficiency across its operations and service delivery.
Continue to monitor its borrowing liabilities, including the impact of any interest rate increases, to ensure that levels are sustainable with reference to the operating income and any received grants for capital projects.
Review estimates of asset lives and valuations informing its forecast rate of asset consumption in its asset management and long-term financial plans to reduce estimated depreciation expenses.
Continue to limit future rate increases to help reduce emerging cost-of-living pressure and consult with the community on desired service levels.

This advice for the City of West Torrens in 2022-23 is available below:

Local government advice – City of West Torrens - Advice

For further information, refer to the attachment below:

Local government advice – City of West Torrens – Attachment

District Council of Yankalilla 2022-23

The Commission finds the District Council of Yankalilla’s financial performance is at risk of being unsustainable with continued operating losses from rates revenue, and service level requirements of its infrastructure stretched. While Council forecasts service consolidation following major capital projects and plans for expanded capital renewal for its assets, its high rates will need to be managed to limit cost-of-living pressure felt by the community.

The Commission recommends the District Council of Yankalilla make 11 changes to its strategic management plans to ensure its financial sustainability and provide confidence to ratepayers that they are paying the right level of rates for council services.

Recommendations for the District Council of Yankalilla, one of 15 councils reviewed in 2022-23 and to be reassessed in four years’ time, are:

Provide more clarity with annual inflation assumptions feeding into its projected revenue and expenses, distinct from real impacts, in its long-term financial plan.
Continue to review inflation assumptions from July given potential for higher short-term inflation followed by a return to long-term averages.
Focus on cost constraints for expenses.
Report actual and projected cost savings to show Council is achieving efficiency across its operations and service delivery.
Improve transparency on borrowing assumptions, including interest rates and loan terms, in its long-term financial plan.
Review estimates for asset lives and valuations feeding into depreciation expenses.
Finalise and adopt asset management plans across categories and publish to the Council website.
Report estimated yearly changes to general rates, and revenue expected from different rate categories in the annual business plan to provide transparency to ratepayers.
Review rateable property growth forecasts annually to limit additional future rate increases.
Review and consider reducing average rate increases, in consultation with the community, particularly rates for those who have a lower capacity to pay.
Review the rate increase cap in its next annual business plan with consideration of the community’s ability to pay for higher increases up to this level.

This advice for the District Council of Yankalilla in 2022-23 is available below:

Local government advice – District Council of Yankalilla - Advice

For further information, refer to the attachment below:

Local government advice – District Council of Yankalilla – Attachment

Kingston District Council 2022-23

The Commission finds the Kingston District Council’s financial position potentially unsustainable based on high-cost growth and forecast operating losses. However, the Council is projecting constraint on spending and cost efficiency to move into a more sustainable position over time. Forecast rates revenue will exceed expenses to create a projected operating surplus, but risks to its projections remain. In addition, there are several opportunities for improvement in the Council’s strategic management plans.

The Commission recommends the Kingston District Council make 11 changes to its strategic management plans to ensure its financial sustainability and provide confidence to ratepayers that they are paying the right level of rates for council services.

The advice comes in response to April 2022 changes to the Local Government Act giving the Commission advisory powers to the State’s 68 councils which inform their decisions on rates and give ratepayers and other stakeholders an independent assessment of councils’ plans. The scheme provides advice only and is expected to add value across communities.

Recommendations for the Kingston District Council, one of 15 councils reviewed in 2022-23 and to be reassessed in four years’ time, are:

Consider updating its long-term financial plan to include a full Statement of Income and a breakdown of aggregated capital expenditure.
Consider better coordination of annual updates from the budget and business plan to the long-term financial plan for better transparency.
Ensure the long-term financial plan includes reasonable assumptions of annual inflation for cost and revenue estimates.
Focus on constraining costs in its annual and projected budgeting.
Report actual and projected cost savings to show it is achieving efficiency across operations and service delivery.
Review estimates of asset lives and valuations feeding into forecast rates of asset consumption in the long-term financial and asset management plans.
Adhere to long-term financial plan principles to fund more asset renewal rather than new or upgraded infrastructure.
Monitor community priorities on desired service levels for different assets including the results of engagement on its infrastructure and asset management plan.
Ensure the next review of its asset management plan includes community wastewater management system infrastructure requirements.
Review and consider limiting rate increases above inflation for vulnerable members of the community to reduce cost-of-living pressure.
Focus on constraining costs to reduce pressure on all rate levels while considering the community’s desired service levels, any proposed capital expenditure and associated costs.

This advice for the Kingston District Council in 2022-23 is available below:

Local government advice – Kingston District Council - Advice

For further information, refer to the attachment below:

Local government advice – Kingston District Council – Attachment

Mid Murray Council 2022-23

The Commission finds Mid Murray Council’s financial position as potentially unsustainable due to recurring operating losses from rates and other revenue unable to meet service requirements of its assets. The Council has historically spent a large portion of its revenue on new and upgraded assets with various infrastructure projects, but it has not been renewing its existing assets at the levels required for financial and service level sustainability. Improving its financial performance will rely on continued rate increases and consolidating services.

The Commission recommends the Mid Murray Council make nine changes to its strategic management plans to ensure its financial sustainability and provide confidence to ratepayers that they are paying the right level of rates for council services.

Recommendations for the Mid Murray Council, one of 15 councils reviewed in 2022-23 and to be reassessed in four years’ time, are:

Review its inflation assumptions in next financial year’s projections, given the potential for higher short-term inflation, followed by a return to long-term averages.
Focus on constraining costs in its budget.
Report its actual and projected savings in its annual budget, providing evidence it is efficient and constraining rising costs.
Adhere to its long-term financial plan principles to renew assets rather than spend on new or upgraded infrastructure.
Consider asset sales or disposals in consultation with its community.
Review asset management plan assumptions to ensure they include an accurate picture of spending on assets and better align with its long-term financial plan including asset life and valuation estimates.
Complete its asset management plan for footpaths and kerbs to align with its long-term financial plan.
Review and consider limiting future residential rate rises to reduce cost-of-living pressure on ratepayers.
Focus on constraining costs to reduce the pressure on all rate levels, by considering desired service levels, any new capital spending or associated costs.

This advice for the Mid Murray Council in 2022-23 is available below:

Local government advice – Mid Murray Council - Advice

For further information, refer to the attachment below:

Local government advice – Mid Murray Council – Attachment

Regional Council of Goyder 2022-23

The Commission finds Regional Council of Goyder’s financial position and outlook sustainable with historic and future small operating surpluses, reliant on growth in rates and grants income. The Council has been able to achieve this position with a small rates base. The Council will continue to rely on rate contributions, as well as grants income growth, to achieve this performance, but is also forecast to accumulate cash reserves with a period of cost constraint and service consolidation. This should provide it with leverage to consider allocating funds towards spending initiatives or reducing further rate increases if appropriate, in consultation with its community.

The Commission recommends the Regional Council of Goyder make seven changes to its strategic management plans to ensure its financial sustainability and provide confidence to ratepayers that they are paying the right level of rates for council services.

Recommendations for the Regional Council of Goyder, one of 15 councils reviewed in 2022-23 and to be reassessed in four years’ time, are:

Provide more transparency on inflation assumptions feeding into projected revenue and expenses, distinct from real impacts, in its long-term financial plan.
Review inflation assumptions from July given the potential for higher short-term inflation before a return to the long-term average.
Monitor cost growth in its budget.
Report actual and projected cost savings annually to show it is achieving efficiency across its operations and service delivery.
Review forecast cash reserves to determine if they can be allocated to spending or help lower future rates.
Finalise and adopt its asset management plans across categories and publish them to the Council website.
Review and consider limiting future rate increases above inflation to reduce emerging cost-of-living stress in the community.

This advice for the Regional Council of Goyder in 2022-23 is available below:

Local government advice – Regional Council of Goyder - Advice

For further information, refer to the attachment below:

Local government advice – Regional Council of Goyder – Attachment

Rural City of Murray Bridge 2022-23

The Commission finds the Rural City of Murray Bridge’s current and projected financial performance is sustainable as it anticipates population growth. The Council demonstrates sound operating performance, reasonable use of borrowings and a measured focus on the renewal of its assets, following significant infrastructure and service expansion, leveraged by substantial grant funding.

The Commission recommends the Rural City of Murray Bridge make 11 changes to its strategic management plans to ensure its financial sustainability and provide confidence to ratepayers that they are paying the right level of rates for council services.

Recommendations for the Rural City of Murray Bridge, one of 15 councils reviewed in 2022-23 and to be reassessed in four years’ time, are:

Continue to review its inflation forecasts in its budget and forward projections each year.
Review employee expense projections and better explain the need for a projected peak in costs in 2026-27 in its updated long-term financial plan.
Consider coordinating annual updates of its budget and business plans for annual updates to its long-term financial plan to provide more transparency to the community on the longer-term impacts of its short-term decisions.
Continue to report cost savings and efficiencies in its future budgets, to show efficiencies across its operations and service delivery.
Review its asset management plans, particularly plant and fleet assets, to ensure they cover a period of 10 years.
Update its asset condition assessments, valuations, and useful life estimates in its asset management plans, to ensure they contain the most current information available.
Include more detail about the renewed, new, or upgraded capital spending on infrastructure to better align and provide transparency between asset management and long-term financial plans.
Continue to update existing and complete new asset management plans with a focus on considering the community’s desired service levels, capital spending requirements, and alignment with long-term financial plan projections.
Report estimated average annual change for rates and other charges, together with how much of annual revenue it expects to collect, in its annual business plan, to provide greater clarity and transparency to its ratepayers.
Review the rateable property growth forecasts in its budget each year to ensure they do not create a need for additional rate increases to generate the same level of projected revenue.
Review and consider limiting further rate increases to reduce cost-of-living pressure on the community.

This advice for the Rural City of Murray Bridge in 2022-23 is available below:

Local government advice – Rural City of Murray Bridge - Advice

For further information, refer to the attachment below:

Local government advice – Rural City of Murray Bridge – Attachment

Wattle Range Council 2022-23

The Commission finds the Wattle Range Council’s financial position is at risk of being unsustainable based on forecast operating losses and past growth in costs related to staff. However, future spending constraints and future operating surpluses, based on forecast rates growth exceeding costs, should move the Council into financial sustainability. The Council will need to balance maintaining a more sustainable operating position and addressing the backlog of asset renewals it has accumulated, while at the same time having regard to the community affordability risks stemming from higher rates.

The Commission recommends the Wattle Range Council make 10 changes to its strategic management plans to ensure its financial sustainability and provide confidence to ratepayers that they are paying the right level of rates for council services.

Recommendations for the Wattle Range Council, one of 15 councils reviewed in 2022-23 and to be reassessed in four years’ time, are:

Review and publish its long-term financial plan annually to inform decisions and relevant consultation processes.
Ensure its long-term financial plan identifies annual inflation assumptions for its cost and revenue estimates.
Consider coordinating annual updates to the long-term financial plan from the budget and business plan to provide transparency to the community about changes in rates and other projections and the long-term impacts of short-term decisions.
Review its rationale for recent high employee expenses and focus on constraining those costs.
Report actual and forecast cost savings in the annual budget to show how it is achieving efficiency in operations and service delivery.
Adhere to long-term financial plan principles to provide more funds for asset renewal rather than new or upgraded infrastructure.
Review estimates of asset lives and valuations feeding into its forecast asset consumption rates in the long-term financial and asset management plans.
Finalise updating its existing asset management plans with a focus on community’s desired levels of service, proposed capital expenditure and alignment with long-term financial plan projections.
Monitor the impact of future rate increases with the community and their capacity to pay, particularly on categories like primary production where rates are relatively high.
Focus on constraining costs to ease pressure on all rate levels while considering the community’s desired service levels.

This advice for the Wattle Range Council in 2022-23 is available below:

Local government advice – Wattle Range Council - Advice

For further information, refer to the attachment below:

Local government advice – Wattle Range Council – Attachment

Yorke Peninsula Council 2022-23

The Commission finds the Yorke Peninsula Council’s short-term financial position is unsustainable but acknowledges its steps to achieve sustainability in the medium and long term. The Council’s projected improvement to its financial performance is reliant on Renewing assets, consolidating services, controlling costs, and increasing rates. The Council is demonstrating good practice regarding the formulation of its financial plans, and transparency around its assumptions and directions, including the ratepayer impact. It is also reporting genuine savings through operational efficiencies achieved in its annual budget.

The Commission recommends the Yorke Peninsula Council make six changes to its strategic management plans to ensure its financial sustainability and provide confidence to ratepayers that they are paying the right level of rates for council services.

Recommendations for the Yorke Peninsula Council, one of 15 councils reviewed in 2022-23 and to be reassessed in four years’ time, are:

Continue to review inflation forecasts from July given potential for short-term higher inflation followed to a return of the long-term average.
Consider including its most up-to-date long-term financial plan in the annual budget and business plan to provide transparency to the community about any changes made.
Continue to monitor rising costs in its budget, particularly employee expenses.
Continue its good practice of projected and actual cost savings to its budget to show it is achieving efficiency across operations and service delivery.
Adhere to long-term financial plan principles to fund more asset renewal rather than new or upgraded infrastructure.
Review and consider limiting average rate increases above inflation to reduce emerging cost-of-living pressure on the community.

This advice for the Yorke Peninsula Council in 2022-23 is available below:

Local government advice – Yorke Peninsula Council - Advice

For further information, refer to the attachment below:

Local government advice – Yorke Peninsula Council – Attachment