Adelaide City Council plans to borrow $22m to fund pandemic recovery

Adelaide’s pandemic recovery will not come cheap for the City Council, which is planning to borrow big and sell assets to fund the rebuild.

Cash-strapped Adelaide City Council wants to borrow another $22m to pay for major projects as it continues to recover from the pandemic.

The spending comes despite COVID-19 costing at least $28.5m so far in lost income and support packages provided to city businesses and community organisations.

The council’s draft 2021-22 budget of $280m predicts an operating deficit of $4.8m, with the financial impact of the pandemic expected to continue.

Discussed by councillors at a workshop on Tuesday night, it includes $15m for the Adelaide Central Market Arcade redevelopment, $5.15m to complete the Market to Riverbank project and $2.2m on upgrading Moonta Street in Chinatown.

Adelaide Lord Mayor Sandy Verschoor. Picture: Adelaide City Council

Other proposed funding includes $2m for the Adelaide Town Hall facade, $900,000 on the Adelaide free Wi-Fi project, $100,000 towards the private redevelopment of the council-owned former Le Cornu site at North Adelaide and $2.2m to finish the north-south city bikeway.

Most of the projects will be funded by the further borrowings, which will take the total amount owed by the council to a record $99m.

Its long-term financial plan, attached to the draft budget, estimates total debt will reach $193m by 2032 to pay for renewals of major assets such as the Adelaide Bridge, Torrens Weir, Rymill Park lake, Currie Street-Grenfell Street bus corridor and Rundle Street U-Park building.

The council is embarking on a sale of assets in a bid to raise money for a “future fund”. Already identified for sale have been a city beach volleyball court, public toilets in James Place and a car park.

Lord Mayor Sandy Verschoor said the business plan for 2021-22 had been framed around helping the city recover from the pandemic.

“I know many of our small-business owners are still doing it tough, particularly in the retail and hospitality sectors.

“We are committed to doing everything we can to help our businesses rebuild and recover.”

Ms Verschoor said the council was taking “a measured and rational approach” to its finances.

“We have been very open and transparent about our finances and the impact COVID-19 has had on our bottom line. We have taken a deep dive into our asset base, undertaking a strategic property review over the past few years.”

Ms Verschoor said the council was “well within” its prudential limit for borrowing.

“We need to ensure we are getting maximum return on our investments,” she said.

 Ms Verschoor said the council needed “to be creative with how we plan and deliver services for our community”.

“If the events of the past 12 months have taught us anything, it’s that we need to do things differently,” she said.

The draft budget will be released for community consultation later this month.