Mount Barker Council debt to hit $255m to fund population growth as it tells state government to ‘stop saying sorry’ and help

A Hills council is heading towards $250m of debt amid unchecked growth – demanding the state government stop apologising and just help.

Mount Barker Council has implored the state government to put its money where its mouth is, as it drowns in debt to effectively “build a new town” for its rampant population growth.

Amid warnings it risks its financial sustainability, the council’s debt will hit $255m by 2028 – telling the government to “stop saying sorry” for rezoning 1300ha of farming land and “start saying ‘yes’”.

Its draft 10-year plan shows a four-year spending spree – three times larger than anything it’s undertaken – to keep pace with 1000 people moving there annually.

Projects include a $52m aquatic centre, $168m for a new wastewater business, $100m for a new water treatment plant and its Summit sports and lifestyle precinct, as well as major road upgrades.

It will also spend $20m on “council-owned components” within its ambitious multistorey City Centre project over the next 12 months.

Council CEO Andrew Stuart said Mount Barker was leading the housing agenda but could not “continue to shoulder this alone”.

He said the debt reflected “multi-decade investments” to unlock housing and enable jobs and economic development in the Adelaide Hills.

Artist impressions for the underconstruction $52m Mount Barker Regional Aquatic and Leisure Centre.

“We’re doing our part,” Mr Stuart said. “Now we need the other levels of government to do theirs. It’s time for the state government to stop saying sorry and start saying ‘yes’.”

The state government’s 2011 rezoning created a population explosion and placed enormous pressure on roads and water services, in particular.

Part of council’s debt is $168m to set up a specialised, wholly owned subsidiary – GMB Water – to manage wastewater operations. It began operating on July 1.

Council is expanding its sewer network and building a new treatment plant at the Laratinga wetland over the next decade, to use 100 per cent recycled water for ovals and parks. It has asked government for $48m for the plant.

The Essential Services Commission of SA warned GMB would not hit a surplus for 10 years and suggested it could be an “entirely separate business … legally and operationally” to reduce risk.

It said the council’s overall $255m debt was a “consequence” of “supporting the building of a new town.

The Laratinga wastewater treatment plant in Mount Barker, which is undergoing a huge upgrade. Picture: Mount Barker Council

Artist impressions for the Mount Barker City Centre and town square project. Picture: Burke Urban

A state government spokesperson said the growth was of huge financial benefit to the council, and outlined more than half a billion on transport in the region – including a new dual-lane roundabout and expanded freeway interchanges – a new $365m hospital and $62.7m for new preschool and primary schools catering for 400 students.

“No state government has previously spent as much in the region in so short a period,” they said.

The council previously said if it was forced to improve the town’s wastewater without government help, it would have to slug developers, pushing up house prices.

“Developer contributions are key to funding growth and repaying debt,” Mr Stuart said.

In April, developer Burke Urban – which is also behind the town centre project – announced an extra 400 homes at an expanded Newenham housing project, in conjunction with Newland Developments.

Originally published as Mount Barker Council debt to hit $255m to fund population growth as it tells state government to ‘stop saying sorry’ and help