A special meeting of the council’s Finance and Business Services Committee endorsed the removal of outdoor dining fees – costing $400,000 – and the cap on council rates – costing $1 million.

Both initiatives have caused furious debate among councillors and their endorsement is a personal win for Central Ward councillor Houssam Abiad (outdoor dining) and North Ward councillor Phil Martin (rates freeze) after months of campaigning to convince fellow councillors.

The redevelopment of Gawler Place – championed by Area councillor Natasha Malani – got the tick of approval at a full council meeting later yesterday evening.

The $1.5 million design and preparation cost for the project makes up part of the council’s $25.3 million 2016-17 debt, with the $6 million construction cost planned for borrowing in 2017-18.

The remainder of the 2016-17 debt will be used to pay for the council’s ‘smart city’ investments – including smart parking and smart lighting technology – plus Adelaide Central Market asset renewals – including $300,000 to restore the Grote Street right-hand turn – and more than $8 million for projects the council had planned to complete in the current financial year.

Free outdoor dining

The moratorium on outdoor dining fees passed the committee by a single vote.

Abiad issued a rallying cry to city businesses after narrowly losing a vote on the issue last month, urging them to sign a petition and express their support for the plan.

South Ward councillor Alex Antic told last night’s committee meeting “there are a lot of businesses that would benefit” from the cut to outdoor dining fees.

“You could say it’s about jobs and growth,” Antic said, quoting the federal Coalition’s election slogan.

Fellow South Ward councillor Priscilla Corbell said the initiative had the potential to improve the vibrancy of the city by attracting new venues to outdoor dining.

But Deputy Lord Mayor Megan Hender voted against it, arguing private operators should compensate the public for operating on public land to make profit.

Area councillor Sandy Wilkinson told the meeting it cost about $400,000 to administer outdoor dining each year, and removing fees to recover that money was “just burdening other ratepayers”. He said the change was “not going to result in one more outdoor dining chair” because outdoor dining fees were already minimal and did not constitute a disincentive.

The move will come back to a full council meeting next week for a final sign-off (or rejection, if councillors change their minds).

Rates freeze

The same is true for the freeze on council rates endorsed last night.

Martin told the meeting “it’s a fair thing to do for our rate payers”.

“It provides all of them with some relief …  from rates rising at inflation or above,” he said, arguing that the $1 million in lost revenue would be made up by natural revenue growth over the next year because of a rising city population.

However, Hender argued that as the population of the city grew, the council would need more revenue to pay for services.

“We’ve got plenty to spend our dosh on, guys!” she told the meeting.

“Businesses factor in CPI increases … we’re just giving this money away.”

The decision (if signed off at a full council meeting) would remove a planned council rates rise just above CPI.

A breakdown of the $25.3 million to be borrowed by Adelaide City Council next financial year. Image: Supplied.

Antic said there were “quite a number of efficiencies to be found” in the council’s operations.

Wilkinson said he saw the rates freeze as “populist, as much as the outdoor dining thing”.

Central Market in the red

The Adelaide Central Market’s budget was also endorsed at the committee meeting last night – where a cash operating deficit of about $600,000 in the new financial year was revealed.

Lord Mayor Martin Haese said he endorsed the leadership and direction of the Central Market, but warned the market needed to be in the strongest possible financial position in preparation for the redevelopment of the Central Market Arcade in coming years.

Old RAH development opposition defeated

Phil Martin’s attempt have the council express opposition to the construction and sale of any new residential or commercial premises on the site of the current Royal Adelaide Hospital was overwhelmingly defeated at last night’s full council meeting.

Martin said it was important to prevent a precedent that the parklands could be used to build new commercial buildings, but several councillors argued they should wait until the State Government announces its final plans to develop the site before the council takes a formal position on the issue.