Shire of Augusta-Margaret River budget reveals major jump in predicted staff costs for 2024-25

Staff costs at the Shire of Margaret River are expected to increase 15.4 per cent this financial year.

The nearly $3 million jump in employee costs will eclipse the extra $1.9 million to be recouped from ratepayers off the back of a 4.9 per cent rates increase which was approved this week and will be hitting letterboxes soon.

The 2024-25 budget includes new staff positions, a restructured executive department, a return to full service at the recreation centre and a 4.5 per cent pay rise for shire employees.

The $21.236 million total staff budget compares to actual spending in the previous financial year of almost $18.4 million — $520,000 lower than expected.

The resumption of normal business at the recreation centre, as well as the creation of a new local government-run swim school, were cited among the factors behind the major increase.

The budget papers showed staff costs at the recreation centre would rise about $418,000.

While worker numbers have increased at the shire and additional cost factors were playing their part, the new forecast is a $3.3 million jump on the 2022-23 budget which anticipated total employee costs at $17.853 million.

This week’s budget papers noted some of the new positions to be added this year were previously filled by consultants as the local government struggled with vacant positions and recruitment challenges.

Those costs were included in a separate budget line item, with materials and contracts forecast to decrease about $1 million this financial year as a result.

A multi-year project manager position will oversee replacing the shire’s software systems, funded by an IT reserve fund, while two new officers would be recruited to fill positions that were previously outsourced.

“There are savings anticipated to be made in materials and contract costs as a result of onboarding two new natural areas officers who will look after a number of functions previously outsourced,” the report said.

“A number of other positions have been added into the 2024-25 budget in alignment with those proposed in the long-term financial plan which are focused on keeping up with the demand for services brought about by increased population numbers and subdivision creation.”

The papers also cited a restructure of the executive branch.

While details of the changes were not provided, the budget forecasts costs for the executive to climb from $927,000 in 2023-24 to $1.312 million this financial year.

The shire had other factors to contend with, including a 0.5 per cent increase in mandatory superannuation costs, while workers would also receive a 4.5 per cent pay rise this year that would add hundreds of thousands to the total bill.

“The past few years have seen an erosion in real wages for staff, with wage increases of 3.5 per cent provided in the past two financial years falling well below inflation,” the budget report said.

“The latest increase of 4.5 per cent will go some way to reducing the impact of real wage erosion.”

That comes despite the shire workers’ industrial agreement remaining in development since negotiations were reported in October 2022.