Adelaide City Council poised to return to operating surplus with revised 2021-22 budget

Deft work by an Adelaide City councillor is set to see it return to an operating surplus rather than record another multimillion-dollar loss.

Cost cutting, reduced borrowings and generating more income will see Adelaide City Council return to an operating surplus.

The council has completed community consultation on a $270m budget heavily revised by councillor Alexander Hyde.

Under changes backed by his Team Adelaide faction, a “future fund” will be used for the council’s $28m contribution towards the Adelaide Central Market Arcade, rather than borrowings.

The sale of a revenue-earning city carpark will be put on hold while the $50m reconstruction of another carpark will be scrapped, “air rights” will be sold above a city volleyball court, new spending on the Adelaide Aquatic Centre will be stopped in three years’ time and vacant staff positions will not be filled.

Councillor Alexander Hyde speaks about his proposed budget changes. Picture: Brenton Edwards

Cr Hyde said the initiatives would reduce the council’s projected debt from $193m to $50m within a decade, helping it get back into the black.

“I am pleased the council has backed my commonsense changes to our budget and begun cleaning up the structural deficits we inherited,” he said.

“This decisive action to get back to surplus and reduce debt means the city can keep council rates low while delivering critical infrastructure, community services and city-shaping projects.”

Cr Hyde said Adelaide was the only capital city council to have kept its rate in the dollar frozen for eight years.

“That’s only possible because this council decided to cut corporate fat and began treating ratepayers’ money with respect,” he said.

Acting Adelaide City Council chief executive Clare Mockler during a council meeting. Picture: Brenton Edwards

“In all, we’re underpinning $650 million in new development in the City, have established a new economic development agency and we are investing record amounts in our infrastructure.

“We can only do this because we have a majority of sensible councillors who don’t accept the miserable status quo situation the city has been in for years.”

Cr Hyde said some councillors had supported “various measures which would have created almost half a billion dollars of debt and record deficits as far as the eye can see”.

“We probably would have been in administration within two years,” he said.

Acting chief executive Clare Mockler said the council’s financial position had improved through “identifying cost savings, working more efficiently and focusing on what really matters for ratepayers and city users”.

Lord Mayor Sandy Verschoor during Adelaide City Council meeting at Adelaide Town Hall, April 13, 2021. Picture: Brenton Edwards

“We are committed to permanently reducing our operational expenditure and delivering for our community,” she said.

“Our focus on doing things differently to ensure the organisation is financially sustainable can clearly be seen in these results.

“In addition to lowering our expenditure, we have experienced greater than expected income for our commercial operations.”

Lord Mayor Sandy Verschoor said the council was committed “to finding further operational efficiencies, maximising revenue opportunities and diversifying and growing its revenue streams”.