‘Derelict, decaying and depressing’: Lord Mayor declares city – and the council budget – ‘in crisis’

Lord Mayor Jane Lomax-Smith has blasted the Adelaide City Council for allowing infrastructure to decay while putting its budget in a “death spiral”.

Adelaide’s run-down CBD has been blasted as “derelict, decaying and depressing” as the City Council prepares to increase revenue to halt the budget “death spiral”.

Lord Mayor Jane Lomax-Smith blasted the Adelaide City Council budget as “in crisis”.

A council committee on Tuesday night voted on general principles which are likely to see a major rebuild of the ACC budget and rate rise for the first time in nine years in the CBD.

“The only increase in our rates has come through new buildings and the reality is our rates have been frozen for nine years,’’ Ms Lomax-Smith told the meeting.

“The budget is in what I can only call crisis. I am not sure any of us want to watch a death spiral as our finances go on like that.

“We have to get into budget repair after Covid-19 and ten years of low or reversed growth in our budget.

“We can stay in gentle decline and have pot holes and crevasses and upturned footpaths or we can invest in the future.

“I am absolutely sick of it. I walk around the streets and all I see in derelict and decaying infrastructure and it is so depressing.”

The council’s Finance and Governance Committee voted to send a document of general budget directions to the full council for discussion.

SA Minister for Tourism and Multicultural Affairs Zoe Jettison MP and Lord Mayor of the City of Adelaide Jane Lomax-Smith. Picture: NCA NewsWire / Morgan Sette

The Advertiser understands councillors have discussed raising $250 million in revenue for 2023/2024, up from around $225 million.

But the early general directions include:

MAINTAIN surplus.

KEEP current level of maintenance.

INDEX costs to CPI.

RATE increases to fund any maintenance changes.

LESS relaxed waving of fees and charges.

INCREASE borrowing only for new projects.

Deputy Lord Mayor Phil Martin supported the comments, and said he heard “all the time” that the city looked dirty and run down.

“Our public realm is not being maintained to a level that is satisfactory,” he said.

“One international guest commented as they came to Adelaide that it should ‘get its act together’.”

Councillor Mary Couros said she wanted the council to develop outcomes, not just plan to take more money from ratepayers and city workers.

But Mr Martin said he wanted the council to refocus on maintenance rather than rise rates.

The council plans to revalue city properties and increase borrowings.

Previously only new properties had up-to-date valuations meaning they were charged more.

Council plans to crackdown on vast tracks of property which cannot be rated in the CBD, far more than the burden on suburban councils which have less university, hospital and church land in their boundaries.

The total in lost revenue for 2023/24 will be $34 million and another $6 million lost in discretionary rate rebates.

The council plan notes that another $11 million has been lost over seven years because of a 10 per cent cap in any individual rates increase in any year.

Increasing the rate in the dollar for rates is also being considered as an option, and there will be increases in fees and charges.