A draft budget presented to the council’s City Finance and Governance Committee on Tuesday night suggested rates be increased by 6.9 per cent rate for the new financial year – raising an extra $11 million.

Councillor Phillip Martin proposed cutting the 6.9 per cent increase to 5.9 per cent, but said the council should assess funding given out through grants, sponsorships and strategic partnerships in order to help pay for it.

“I refer particularly to things which have been funded in the past, provided with seed funding, have grown, have matured and probably don’t need the support we continue to offer,” he said. 

Martin used Study Adelaide as an example of a legacy organisation that still receives council funding, which the Lord Mayor has previously pointed out as an area for savings. 

However, Martin said Study Adelaide would be insulated from potential 2024-25 budget cuts as it was part way through a multi-year agreement with the council. 

Council administration has not yet determined what cuts could be made from the grants, sponsorship and strategic partnership funding to accommodate a 5.9 per cent rate rise.

At this stage, it is expected community consultation on the council’s draft budget and business plan will go ahead on April 26.

But Councillor Henry Davis said it seemed “like an immoral trick” to send the budget out for community consultation with a rate of 5.9 per cent before it was confirmed that the rate was achievable. 

“The administration could come back and say, ‘oh no, we’re doing everything we possibly can to get down our grant funding, there’s not that much more we can do so no, that’s not realistic, we’re back up to 6.9 per cent’,” he said. 

Martin’s motion gave the administration until June 18 to recommend budget adjustments which would deliver a 5.9 per cent rate. The motion passed the committee meeting on Tuesday and needs approval at next week’s council meeting. 

If approved, the budget presented for community consultation will show a rate rise of 5.9 per cent – but ratepayers won’t be given details about any potential service cuts. 

Lord Mayor Jane Lomax-Smith said she also disagreed with proposing a lower rate increase without knowing what might be cut to achieve it. 

“I have to say I have some sympathy with Councillor Davis, I do feel it is quite difficult to go out to consultation without knowing what the cuts would be,” she said. 

“I think it’s fair people understand where the cuts would be.” 

It was suggested that council administration be given more time to review the situation, and to defer community consultation by 10 days. 

“One per cent is a substantial reduction but it is one 240th of the total budget, one 240th that we’re talking of, it is a very small amount,” Martin said. 

“I don’t believe it’s necessary, certainly the last council didn’t believe it necessary, to consult on everything we did.”

Rates will be discussed at Tuesday’s council meeting.