Michelle Daw, Yorke Peninsula Country Times

Barunga West Council is looking to recoup up to $305,000 a year in expenses and lost income associated with council land and buildings.

Elected members will be presented with a plan, which was developed following an audit of financial and non-financial contributions by council to community groups, at tonight’s (Tuesday, October 10) council meeting.

The audit covered council land use and unmade road reserves for cropping, grant payments and public liability as well as personal accident insurance premiums for progress associations and groups.

Payment of water and power bills and building insurance for buildings not owned or used by council, council mowing the ovals at the Bute and Port Broughton sports clubs, and council’s community grants program were also audited.

BWC development and regulatory services director Trevor White said the audit showed council was making significant financial and non-financial contributions to sports bodies, progress associations and other organisations.

“This paper also highlights that some bodies and organisations receive significant benefits through the use of community and operational land, council buildings and the use of unmade road reserves, whilst other organisations and sporting bodies are not offered the same opportunity,” Mr White said.

According to the audit, there are 15 council properties cropped by various groups with no formal leases.

“The area of land involved is 335.74 acres (135.8 hectares) with a potential lease rental fee of $200 per acre, representing an opportunity cost for council of $67,148.64,” Mr White said.

Mr White said council also identified 680.109 acres of gazetted but unmade road reserves used for crop-ping without any formal agreement, creating an opportunity cost of $136,021.83.

He recommended council negotiate commercial lease agreements with farmers cropping unmade roads.

Barunga West Council development and regulatory services director Trevor White said there are parcels of land leased by community groups and sporting associations where buildings are being treated as council-owned assets.

“In some instances, groups and associations have relied on council to pay for maintenance and running costs of these buildings, including such items as pest control, asbestos management, fire inspections, water and electricity,” he said.

“Council has insured these buildings although it has had no responsibility for the operation, use and or security of the buildings.”

Local Government Risk Services strongly recommended lessees be made responsible for insuring their buildings.

Mr White said council could continue to support groups experiencing financial hardship by offering a community grant to pay for insurance.

Mr White recommended lessees of buildings on council owned land pay all running costs and insure and maintain the buildings, as of July 1, 2024.

Community groups and sporting associations which own and operate buildings on council land will continue to be offered peppercorn rates for their ground leases.

BWC’s financial and non-financial community contributions

• Use of council land for cropping, opportunity cost $67,148.64 per annum
• Use of unmade road reserves for cropping by farming businesses, opportunity cost $136,021.83
• Mowing for Port Broughton and Bute sports clubs, eight hours a week, equivalent to $27,000
• Grant payments to progress associations and groups, $15,000.
• Progress associations’ public liability and personal accident insurance, $8905.39
• Payment of water and electricity accounts for buildings not owned or operated by BWC, $22,248.26
• Payment of insurances for buildings not owned by BWC, up to $44,081.17
• Community grant program, $40,000
• Total $360,405.29 per annum

This article appeared in the Yorke Peninsula Country Times, 10 October 2023.