The State Government announced in the Budget that South Australia’s Solid Waste Levy would actually rise by 10% on 1 July 2019, instead of the predicted 3% as advised in last year’s Budget. This means the cost has increased from $100 a tonne to $110 then will increase further to $140 per tonne from January 2020, so the draft 2019/2020 budget will need to be changed to reflect this increase in expenditure.
Currently Council pays approximately $2.8 million a year in Solid Waste Levy for collection of its 27,850 tonnes of kerbside, hard refuse and street litter, so this increase means ratepayers will be paying an estimated extra $620,000 in 2019/2020, and an extra $1.1million for the 2020/2021 financial year.
This is an unexpected and significant cost to our community, and has come very late in our budget cycle, so it was not included in the draft 2019/2020 budget, as all the rate modelling, long term financial plan, rate in the dollar, and overall budget calculations had already been done.
It was planned to put this budget to Council next week for adoption, however with this new information Council must now make a decision about how Council finances this unexpected increase. The Special Meeting which was scheduled for June 25 is likely to be adjourned to allow Council to consider the impact of this State Government imposed levy.