City of Norwood, Payneham and St Peters to hit $106m in debt after massive Payneham pool redevelopment blowout

An Adelaide council’s debt is set to hit $106m after the cost of its pool upgrade exploded, with one plan to tackle it to borrow more to pay for a gym.

Payneham Swimming Pool development plans. Picture: Supplied

An eastern suburbs council’s debt will hit more than $100m – and may rise further – after its swimming centre redevelopment budget blew out by more than $35m.

However, despite concern the huge debt will leave Norwood, Payneham and St Peters Council hamstrung for more than a decade, the council is considering borrowing more money to build a gym at the pool to increase revenue.

Council documents show NPSP’s maximum debt is projected to hit $106.6m by 2028/29, while its metric councils use to measure their capacity for debt will reach 160 per cent, well over its target of under 100 per cent, between 2025 and 2029.

Payneham Swimming Pool development plans. A 14 metre tall tower with two water slides will also be constructed. Picture: Supplied

NPSP plans to use the funds for major projects including the redevelopment of Payneham Memorial Swimming Centre, the redevelopment of Norwood Library, a masterplan for The Parade in Norwood and a Trinity Valley drainage upgrade.

But NPSP councillor Grant Piggott said he was concerned the level of debt would stop the council from initiating any new projects in the next 10 years.

Stressing he did not speak for the council, Mr Piggot said: “ (NPSP’s) just not able to do anything outside the current long-term financial plan. Anything that’s not in the plan currently, (the council) won’t be in a position to accommodate.”

A January 2025 NPSP report listing budget improvement ideas said a gym could be added to the pool project to increase revenue.

Payneham Swimming Pool development plans. The redevelopment will see the construction of three different pools. Picture: Supplied

Payneham Swimming Pool development plans. The redevelopment will see the construction of three different pools. Picture: Supplied

NPSP Mayor Robert Bria told The Advertiser the gym would be an extra cost, which the council would need to borrow more money to pay.

“The council would need to consider very carefully, is that extra cost worth it, when assessed against potential revenue?” he said. “That needs to be worked through.”

He acknowledged NPSP’s forecasted debt was a “large amount” but he said the projects had been through extensive community consultation.

Mr Bria said NPSP had been transparent with the community about the costs, which were detailed in the council’s long-term financial plan.

He said none of the projects compromised NPSP’s annual capital works program, which included works such as road reseals and footpath maintenance.

Norwood Payneham & St Peters Mayor Robert Bria. Picture: NCA NewsWire / Brenton Edwards

NPSP’s debt in the current financial year is $74 million, up from $35 million in 2023-24, according to its long term financial plan.

In March 2024, Mr Bria blamed the blowout of costs for the redevelopment of the Payneham Memorial Swimming Centre – from $24m to $60m – on supply chain issues, interest rates, inflation and skill shortages.

In October 2024, the Local Government Finance Authority set stringent “special conditions” on a $41.2m loan to NPSP, in a letter that referred to the council’s “elevated debt levels”.

The letter said any government grants received by council for the Parade and Norwood Library projects must be “used to retire debt and not expand the scope of these projects”.