Adelaide in Crisis: The Report the Council Doesn’t Want You to Read

The independent financial review is in and it confirms everything I’ve been warning since the start of this council term.

The City of Adelaide is in a financial crisis. Not in the distant future. Not hypothetically. Right now. We will be insolvent if the council's hopes and prayers arn't answered by a State Government Bailout.

According to an independent assessment, our Long-Term Financial Plan is non-compliant with section 122(1b) of the Local Government Act 1999. In plain English: our budgeting doesn’t meet legal requirements. We are already in breach.

And yet, Council pushes on with glossy documents and media spin, hoping ratepayers don’t look too closely.

The Debt Cliff

Council’s own figures show that we will reach 101% of our borrowing limit by 2030. From there, we remain maxed out—at or near 100%—for five straight years, all the way through to 2034 and beyond.

There is no plan to repay that debt. None.

We are borrowing to the hilt while failing to fully fund our Asset Management Plans. And that’s before we factor in the $110 million needed to replace the Adelaide Bridge and Torrens Weir.

Our interest bill at 5% would be over $10million a year funded by ratepayers. That's about the cost of an entire main street upgrade.

Council is hoping the State Government will step in and fund them. But here’s the kicker: Minister Tom Koutsantonis has said that the Bridge and the Weir are the responsibility of the council. This council however remains blind and is banking on a state government bailout to prevent insolvency.

So now we’re relying on wishful thinking instead of financial planning. Politics over Prudence.

Can’t Fund AEDA. Can’t Fund Our Infrastructure.

The truth is we can’t afford to fund our economic development strategy run by AEDA at the level required to support traders and reactivate the city. We went out to consultation, promised to deliver, then failed to fund more than $5 million from AEDA’s endorsed plan.

That means fewer events. Less foot traffic. More empty shops.

At the same time, we can’t afford to maintain our assets to the standard set by our own adopted plans. The shortfall in funding isn’t a gap—it’s a chasm. And the only way the budget shows a surplus is by ignoring this reality.

What’s Next?

This Council needs to stop pretending everything is fine. It’s not.

Ratepayers deserve honesty and not fantasy forecasts and creative accounting.

This is a moment that demands serious leadership.

We need to:

• Rework the Long-Term Financial Plan to bring it into legal compliance;

• Stop underfunding asset renewals and hiding the true state of our finances;

• Hold frank discussions with the State Government about infrastructure co-funding;

• And restore integrity and realism to our budget process.

  
  

Because right now, we’re not just in breach of the Act—we’re in breach of the public trust.

Let’s fix this before it’s too late.