Adelaide Hills Council borrowings to hit $43.7m by 2028, draft plan shows, as it pushes for surplus by 2029

The Hills council will be facing a debt of nearly $44m within three years, its draft financial plan shows, as it claws back a huge deficit.

The Adelaide Hills offices in Stirling. Picture Supplied

Adelaide Hills Council plans to hit borrowing levels of nearly $44m by 2028 and increase rates as it claws its way out of a multimillion-dollar deficit.

Its draft 15-year financial plan shows an ambitious zero-debt target by 2040.

Before that, its borrowings – $29m by July this year – will hit $40m in 12 months and $43.8m two years later, as it tackles an ambitious asset renewal plan.

After a “reassessment of council’s financial sustainability”, it will raise rates – 6.2 per cent next financial year, about an extra $161 on average, its draft plan says.

That’s followed by minor rises in years after – which it called necessary to become “sustainable”.

The council said its “net financial liabilities” were forecast to peak at $41.5m in the 2028 financial year and were then expected to fall steadily.

Its draft long-term plan, however, shows borrowings will hit at $43,795,000 by June 2028.

The borrowings are to primarily to fund “significant” works on property and other assets, it said, adding it was not behind on asset renewal or replacement.

“A re-evaluation has identified that council’s financial sustainability is not as robust as previously thought. Consequently, the council must now plan for significantly higher costs associated with the renewal and replacement of assets,” its draft budget for 2025/25 says.

In September last year, it revealed a surprise $4.863m operating deficit for 2023-24, instead of an expected $559,000 surplus and blamed the previous administration.

AHC forecast a $2.85m operating deficit next year and a surplus by 2029.

It has laid out an aggressive campaign to renew assets, including ageing Hills footpaths – which require about half a million next financial year to begin with.

The council said it had $13.85m budgeted for asset renewal next year, $5.15m on roads, $544,000 on a Balhannah stormwater project and $244,000 on a Uraidla play space

Ahead it had also planned other play spaces, toilet renewal, upgraded irrigation at Gumeracha Oval, new cladding at Stirling library and town beautification.

CEO Greg Georgopoulos said council’s long-term overall financial position remained strong.

“Our commitment to applying best practice has ensured we have entered this budget cycle with greater clarity and confidence.”

It comes as a report found ex-councillor Louise Pascale – one of three women who quit the council within seven days last month – breached behavioural standards three times, including with a LinkedIn post in May.

A secret investigation into the breaches cost $50,000, council said, and recommended she make public and written apologies and attend training.

“As Ms Pascale is no longer a member of Council, the elected members resolved to take no further action in relation to these complaints,” acting mayor Mayor Nathan Daniell said.

Ms Pascale said she wanted all the reports into the complaints released “in full” for transparency reasons.

“The council could have dealt with the complaints internally by mediation, but instead chose to involve external lawyers, a secret process which cost ratepayers over $50,000,” she said.

“I find it ironic that the council insists that the investigation and reports be protected by confidentiality, yet has been able to release some details of the reports, (while keeping the reports themselves secret) and has even published a media release, in which I am specifically named”.

“I want the reports released unredacted – if they put my name out there, they should put the whole of the reports out there too so people know what actually happened, and what ratepayers’ money was spent on.

Pauline Gill and Melanie Selwood also quit the council last month, Ms Gill alleging bullying and Ms Selwood in preparation of a state parliament run.

AHC was hit by multiple controversies last year – its mayor Jan-Claire Wisdom is on long-term sick leave after her council alleged an investigation found she bullied staff and misled the community and council.

She refused to quit, challenging the findings, despite council voting she resign.