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Adelaide councils are trying to balance their books during a cost of living crisis and have released their proposed rate rises

Adelaide councils are crunching the numbers to determine rate rises for the next financial year. One council is proposing 9.49 per cent, while another is as low as 2.49 per cent. See the list.

First look at Payneham's new $23m swimming pool

An eastern suburbs council is proposing a 9.49 per cent rate rise as it combats higher than normal building costs and finishes construction of a $60m swimming pool.

Norwood, Payneham & St Peters Council has proposed the highest residential rate increase of any metropolitan council, on the back of a 7 per cent rate increase the previous financial year.

Mayor Robert Bria said the draft budget continued to invest in infrastructure, including $26m for capital projects – $11m of which was to complete the Payneham Memorial Swimming Centre by early 2026.

The pool redevelopment – which blew out from $24m to $60m – was at the time blamed on supply chain issues, interest rates, inflation and skills shortages.

The new Payneham swimming pool will include a 14m tower with two water slides and 10 lane 50m pool. Picture: Supplied
The new Payneham swimming pool will include a 14m tower with two water slides and 10 lane 50m pool. Picture: Supplied
The redevelopment also includes an eight lane 25m indoor pool and all-access changerooms and multipurpose meeting rooms. Picture: Supplied
The redevelopment also includes an eight lane 25m indoor pool and all-access changerooms and multipurpose meeting rooms. Picture: Supplied

“Against a backdrop of economic uncertainty both nationally and internationally, the City of Norwood Payneham & St Peters – like all other councils – faces a challenging financial environment,” Mr Bria said.

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“While interest rates and inflation have fallen ... the legacy of these additional impacts on operational costs, and the cost of materials and labour required to deliver projects and provide services and programs, have been at the front of mind of council’s deliberations associated with this draft budget.”

The proposed average residential rate of 9.49 per cent equates to $194, or an average rate bill of $2238, and was subject to community consultation.

Mayor Robert Bria. Picture: Dan Schultz
Mayor Robert Bria. Picture: Dan Schultz
Mayor Heather Holmes-Ross. Picture: Supplied
Mayor Heather Holmes-Ross. Picture: Supplied

About 50 per cent of ratepayers were estimated to pay the average rate or less, with one third – about 6650 of ratepayers – to pay the minimum rate of $1386.

Burnside Council has proposed a 6.95 per cent rate rise, on the back of a 9.8 per cent rise the previous financial year after it backed down from an initial 14 per cent rise.

Mitcham Council was consulting the public on either a 4.78 or 5.67 per cent rate rise, resulting in an average residential rates bill of either $2344 or $2364.

“Both options reflect the reality of rising costs of delivering services and infrastructure, along with the impacts of cost shifting from other levels of government,” Mayor Heather Holmes-Ross said.

Onkaparinga and Campbelltown councils have proposed the lowest residential rate rise of 2.49 per cent and 2.5 per cent, respectively.

Onkaparinga had a rise of 6.8 per cent in 2024-25 in a budget focused on repair after it was in deficit for seven consecutive years.

“Last year’s hard work has allowed us to set the rate revenue increase ... just below CPI, helping to limit the financial impact on our ratepayers,” chief executive Phu Nguyen wrote in the draft budget.

The Essential Services Commission of SA last year emphasised the council needed to dispose of ageing or excess assets to reduce debt and exposure to future liabilities.

The council earlier this year identified seven parcels of land as “surplus to requirements” and would consult the community on their future.

Campbelltown Council chief executive Paul Di lulio said the council had endorsed a long-term financial plan that linked rate rises to CPI to minimise the impact on the community.

ESCOSA found its current and projected financial performance was “sustainable” due to its “robust strategic planning, sound operating surpluses and rates growth per property consistent with inflation”.

Pool’s budget blowout results in ratepayer frustration

Norwood Residents Association acting chair Mackie Eaton speaks about the proposed residential rate rise of 9.49 per cent in his council area. Picture: Russell Millard Photography
Norwood Residents Association acting chair Mackie Eaton speaks about the proposed residential rate rise of 9.49 per cent in his council area. Picture: Russell Millard Photography

The new redeveloped Payneham Memorial Swimming Centre is touted as a state-of-the-art-facility, but its budget blowout is to the ire of some ratepayers.

Norwood, Payneham & St Peters Council has proposed an average residential rate rise of 9.49 per cent in 2025-26, “which is definitely attached to the swimming pool development”.

“We predicted it would result in an increase in rates, that’s been our biggest beef,” Norwood Residents Association actingchair Mackie Eaton said.

“The cost went from $20m to $60m and we understand cost blowouts, but it shouldn’t triple – it’s over the top.”

The Norwood resident of 44 years said he understood elements of the blowout may have been out of the council’s control, which had been blamed on supply chain issues, interest rates, inflation and skills shortage.

“Someone has to pay for it, so naturally it’s fallen in our hands, but what do you do – people want facilities but don’t want to pay for them,” Mr Eaton said.

“Norwood isn’t a bad council, they try, but I think they’ve extended their mandate beyond their capacity at times.”

Mr Eaton said he looked forward to a report by the Electoral Services Commission of SA which analyses the council’s financesand provides independent risk-based advice on investment decisions and long-term financial plans.

The council’s 2025-26 draft budget also included $3.5m for resealing of roads, 1.2m on renewal of footpaths and funding for new playgrounds and shade sails at Adey Reserve, Firle, and St Peters Child Care Centre and Preschool.

Originally published as Adelaide councils are trying to balance their books during a cost of living crisis and have released their proposed rate rises

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Original URL: https://www.ntnews.com.au/news/south-australia/adelaide-councils-are-trying-to-balance-their-books-during-a-cost-of-living-crisis-and-have-released-their-proposed-rate-rises/news-story/fd53ad36df2c404b01f213071b5c0e0f