City businesses and residents bracing for big fee/rates increases

City businesses are facing the reintroduction of millions of dollars in fees, and residents major rates increases as Adelaide City Council battles with a broken budget.

Sally Wotton, Jazmin Wotton and Robby Lippett at The Store in North Adelaide. Picture: Kelsey Zafiridis

City businesses are facing the reintroduction of millions of dollars in fees, and along with residents major rates increases as Adelaide City Council battles with a broken budget.

Lord Mayor Jane Lomax-Smith has warned the council is in “budget repair” mode and warned without rates increases, fee increases or more debt the council would not achieve “one single project” in its current term.

During debate on Tuesday night she and councillors pushed back against a lack of revenue because of a rate-in-the-dollar freeze of the last ten years, fee abolitions during the Covid-19 pandemic, and no rates revaluation of properties for five years.

At the same time the Council administration has presented an unfunded $140 million in required street improvements for Hindley, Hutt, Melbourne and O’Connell streets.

Lord Mayor of Adelaide, Jane Lomax-Smith. Picyure” David Mariuz

But Dr Lomax-Smith said endless planning meant the council would not complete “one major project” in its four-year term without funds to deliver them.

“I want to see shovels in the ground,’’ she said.

Dr Lomax-Smith described King William St as a “disgrace” and “such an embarrassment”.

“I think it is the least well-maintained main street that I have ever seen,’’ she said.

Dr Lomax Smith said the Council had been put in a difficult position and should reintroduce fees like outdoor dining permits which were waived during the Covid-19 pandemic at a cost to council of $3 million.

“It is unconscionable that we have not returned fees for use of city streets, it is unconscionable that Parklands activities do not have a charge,” she said.

But The Store cafe co-owner Jazmin Wotton rejected the call for a return in fees.

“It seems completely unnecessary because if you are renting a retail commercial space you are already paying back to the council,’’ she said.

“You name it and we’re paying for it and it is not very encouraging for small business when everything has gone up.”

Council was also presented with scenarios for increased borrowings to fund projects, but the administration warned a $10 million loan would require $871,000 annually in repayments for 20 years, and a $20 million loan which would need $1.7 million to service each year.

At the meeting Councillor Mary Couros won Dr Lomax-Smith’s support for a plan to quarantine increases in revenue to spend on major projects, instead of being absorbed into council operations.

“We are going to be asking ratepayers to pay, but ratepayers will want to know where it is going to go,” she said.

“We all want our streets upgraded.

“If we are going to increase rates I want that money going into a fund where it can be seen and do something.”