Council welcomes ESCOSA’s draft advice on long-term financial planning

4 March 2025

Mount Barker District Council is currently reviewing the draft advice provided by the Essential Services Commission of South Australia (ESCOSA) regarding its financial and strategic management practices.

The ESCOSA Local Government Advisory Scheme, established by the State Government in 2022, aims to assist councils in remaining financially sustainable by ensuring that their long-term financial and asset management plans are effective in meeting the needs of current and future residents.

The draft advice delivered to Mount Barker District Council includes independent and transparent information that will be critical to the discussions and decisions for the 2025/2026 Annual Business Plan. The advice addresses key financial and asset management practices in the rapidly growing council area.

ESCOSA found that the Mount Barker District Council’s current financial performance is sustainable, with a planned 2.5 per cent annual rate increase per property and good asset management. However, high borrowing levels needed to support regional growth could pose future risks.

Mount Barker District Council’s Chief Executive Officer, Andrew Stuart, emphasised the council’s commitment to balancing financial sustainability with the need to provide essential services for the community.

"A Ministerial Development Plan Amendment in 2009 along with the more recent housing crisis continues to drive Mount Barker's expansion and the significant infrastructure demands on the council. We continue to monitor and refine our Long-Term Financial Plan (LTFP) and Strategic Asset Management Plan (SAMP) to address the long-term high growth forecasts,” Mr Stuart said.

"We also believe that the cost of growth should be shared equally across generations and not disproportionately borne by the current or future residents."

ESCOSA’s draft recommendations for Mount Barker District Council cover several important areas, including updates to strategic management plans, capital expenditure disclosures, growth rate reviews, operating cost efficiency reporting, and the use of expert financial advice.

In its interim response to the draft advice, the council reaffirmed its commitment to financial transparency, sustainable asset management, and active community engagement. Key actions highlighted by the council include:

Strategic Management Plan Updates: The council will update its Strategic Asset Management Plan annually, incorporating asset condition assessments and valuations every four years.
Capital Expenditure Transparency: Future iterations of the Long-Term Financial Plan (LTFP) will clearly disclose material changes, while maintaining commercial confidentiality.
Efficiency Gains: The council will better highlight efficiency gain projections in future updates to its LTFP.
Financial Risk Advice: Independent external expert advice will be sought annually to review borrowing levels and ensure financial risk measures are appropriate.
General Rate Stability: The council will continue to smooth inflationary impacts on general rates, aligning future rate increases with inflation to maintain rate stability.

"Balancing the financial pressures on households while ensuring the community's infrastructure needs are met is a significant challenge for any council. We welcome the insights and advice provided by ESCOSA as we strive to improve our practices," Mr Stuart said.

Mount Barker District Council will consider its full response to ESCOSA's advice at its meeting on 7 April 2025. The advice will play a crucial role in shaping the council’s future financial management and service delivery strategies as it continues to support its growing community.