Mayor Brian Sambell revealed the recurrent council operating deficit was about $2million per year.

“This figure is not financially sustainable and appropriate measures need to be implemented to reduce it,” Mayor Sambell said.

“Our long term financial plan projects an increase in general rates from existing ratepayers of about eight per cent-per-annum for the next three years.”

That could translate to an increase in the average residential rates of about $100-per-annum during the three-year period.

Mr Sambell said the plan proposed an increase in general rates of between four and five per cent thereafter, consistent with the movement in projected expenditure.

The Mayor did say council would also act to reduce costs.

One area of focus would be spending on consultants and legal fees.

Since July 1, 2008, the council has spent about $1 million in these areas.

“Previously, council staff were able to call in consultants and seek legal advice whenever they felt it necessary,” Mayor Sambell said.

“To tighten the process, staff must now seek council approval before engaging legal or consultancy advice. Council is a business and we have to run it as a business.”

Mayor Sambell said the council updated its ‘long term financial plan’ each year and welcomes community feedback.

“The plan is designed to provide a high-level, long-term protection of the council’s financial activities towards ensuring the financial sustainability of the council in the longer term,” he said.

“Council will continue to monitor and review its expenditure and service levels towards achieving its key financial target of an operating surplus within four years.”

Copies of the long-term financial plan are available on the council’s website - www.gawler.sa.gov.au - and can be inspected or purchased at the Town Hall, 89 Murray Street, Gawler.