Adelaide City councillors walk out on Budget meeting amid rate hike bid to fill $8.6m black hole

Three Adelaide councillors have dramatically walked out on budget deliberations as the city heard it had a stark choice to make on a stiff rate hike.

Adelaide City Council will release its 2025/26 draft budget to the public.

Adelaide City Council is proposing a minimum rate of $600 be introduced for the first time, affecting more than 1000 small businesses and properties as part of its 2025/26 draft budget.

The proposed rate and budget deliberations led to councillors Henry Davis, Mary Couros and Arman Abrahimzadeh walking out of Tuesday night’s special council meeting in protest.

The draft budget, to be released for community consultation, included a forecast operating surplus of $8.5m and borrowings projected to be capped at $49m.

Cr Davis had earlier called the draft budget “disastrous” and “flawed” and said it underfunded critical asset renewals by $8.6m.

Adelaide City councillor Arman Abrahimzadeh Picture: Supplied

Councillor Mary Couros. Picture: Claudio Rashella

“Critical areas like roads, parks, urban spaces, lighting, and water infrastructure are being systematically neglected,” Cr Davis told the meeting.

“If our asset management plan were properly funded this budget would have a $59,000 deficit and that’s the truth behind the spin.”

The draft budget included a 5.6 per cent rate increase for existing properties and 6.9 per cent for new developments.

The new $600 minimum rate for 1100 properties included 230 smaller offices – some as small as 25sq m and currently paying $96 in rates for an assessed value of $700.

Its introduction would generate an additional $287,000 in rates revenue.

Cr Couros was critical of the minimum rate, lack of information presented by staff and the three per cent increase to all fees and charges during a cost of living crisis.

“Council has become increasingly dependent on ratepayers to fund its operations,” Cr Couros told the meeting. “Grants and investment incomes are declining, but there’s no clear strategy to diversify our revenue streams.”

Cr Mark Siebentritt said the council had held 10 meetings on the draft budget since December and genesis of the minimum rate was to create a more equitable rating policy.

Councillor Mark Siebentritt. Picture: Supplied

Adelaide City Council candidate and former Burnside councillor Henry Davis. Picture: Supplied

He said positives of the draft budget included $107m of capital works – $67m for asset renewals and $39m for new assets such as converting the Adelaide Aquatic Centre site into community playing fields.

The council has also proposed the daily road closure fee of $960 for major events be applied to state and federal government agencies and entities.

The Essential Services Commission of SA recently released analysed the council’s 2024-25 finances and found it had operated unsustainably for the past 10 years and its future financial performance was deemed potentially unsustainable.

Originally published as Adelaide City councillors walk out on Budget meeting amid rate hike bid to fill $8.6m black hole