Total council borrowing to eclipse $13m

STEADY HAND: Corporate and community director with Port Pirie Regional Council, James Holyman, says borrowings are 'well within acceptable levels of manageable debt'.
STEADY HAND: Corporate and community director with Port Pirie Regional Council, James Holyman, says borrowings are 'well within acceptable levels of manageable debt'.

A new loan of $10 million will be taken out by Port Pirie Regional Council to back the sport hub project.

This is revealed in the council’s business plan for the next two years.

The plan, including a rates strategy, was adopted at the council’s latest meeting.

Papers were tabled to outline the new loan which will take the total debt outstanding to $13.2 million at June 30 next year.

Corporate and community director James Holyman said total principal and interest repayments of $600,000 this financial year would represent about 3.2 percent of total rate revenue.

“This is well within acceptable levels of manageable debt,” he said.

For this financial year, $994,000 is to be spent on a revised landfill remediation plan.

“This is the final year of major works with completion planned in 2018-19,” Mr Holyman said.

Councillors decided to increase the total general rates by 4.47 percent, described as one of the lowest increases in many years.

The fixed charge increases by $5 to $465 and the differential rate rises by three percent.

The waste collection free increases to $220 and there are proposed changes to CWMS costs of 2.9 percent. The Natural Resources Management levy will rise by 3.6 percent.

The total property valuation of the district has increased by about 2.5 percent with large rises for commercial and rural properties.

Growth for the year was about 1.2 percent with a big increase in land use type Commercial-Other.

The capital works program includes renewal and replacement works for assets and the provision of new and upgraded sites.

Total costs will be $20.3 million with $2.56 million for roads, $404,000 for kerbs and footpaths and $285,000 for parks and recreation.

Rates income will be about $17.6 million while an estimated $4.5 million funding will come from the Grants Commission and $612,000 from Roads to Recovery.

After community consultation on the draft plan, the rate income was reduced by $100,000.