6 days ago
SA government puts Peterborough District Council put on notice over 'serious financial concerns'
A regional council has pushed ahead with South Australia's highest rate increase of the year, with locals demanding greater clarity about how their money is being spent.
Peterborough District Council in the Mid North approved the 10 per cent average rate hike on Monday, saying it was necessary to tackle the rising cost of business.
The special meeting also heard that newly minted chief executive Kristen Clark proactively reported historic "compliance issues" to Local Government Minister Joe Szakacs, who has implemented a monitoring regime.
Mr Clark said the council would still record a $524,000 operating deficit this financial year, despite the increase.
Two councillors – Kim Miller and Teena Martin – voted against it.
Mr Clark, who will remain at the helm until at least June 2026, told the ABC certain financial documents "don't appear to be current" but could not offer specifics at this stage.
"This has resulted in our long-term plan not being updated, because until we have current and correct information, we'd be preparing a financial plan that's not based on our reality today," he said.
Soon after taking the job in May, he met with Mr Szakacs to discuss "concerns about the council's financial performance … and financial governance issues generally", according to a letter from the Minister tabled at the meeting.
Last week, Mr Szakacs ordered the council to produce 12-month cashflow forecasts and report to him every month about actions it has "taken or intends to take" to prevent future deficits.
"While I recognise the difficulty in making decisions to increase rates and charges and/or reducing the range and level of some existing council services, such decisions may be necessary and appropriate to ensure financial sustainability in the longer term," he wrote.
Livestock farmer Bridget Woods said her rates on two properties last year were just over $3,000, describing the increase as "another 10 per cent we have to dig up somewhere".
"They've got to have a bit of tolerance toward the lower income of the town," she said.
"It's going to have a huge effect, because what they're spending on rates, they can't spend on local businesses."
Former public servant Harry Moate said he had been concerned about council's spending for several years.
He drew attention to the cost of running Steamtown, the town's rail heritage museum, which has bled at least $1.5 million since opening in 2009, according to council documents.
"It's not about not being able to afford [rates], it's about council taking some responsibility and not wasting money," Mr Moate said.
"At the moment, I'm feeling we should be in the hands of administrators, and I don't think we can be any worse off.
"It might be likely our rates go up even further, but at least we won't be going further into debt."
This week, the council shut Steamtown until 2026 at the earliest while "a new operating model is developed", according to a statement.
Retired environmental scientist Christopher Dean, who will pay an extra $240 this year, said Mr Clark's performance so far was "refreshing".
Previous chief executive Leanne Babic resigned under a cloud after just two months.
However, Mr Dean said councillors "adopted the business plan with very little discussion or debate".
"Many people are objecting to [the increase], but they're so used to having to give way that some are saying, 'We'll get through it', and so on," he said.
"I objected two years ago, and I put in a consultation submission, and never heard back.
"This year's a bit different, they're trying to create the impression of being a bit more open."
Mr Clark also said the Community Wastewater Management System, built in 2017, was "weeping" and "repairs are likely to be a medium to long-term issue".
An initial 2023 quote put the estimated repair bill at $4.5 million.
It cost $17.6 million to complete, with the council putting in $6.5 million.
The Monday meeting also heard the Local Government Financing Authority halved a requested 12-month loan, from $1 million to $500,000 over six months.
The lender cited "ongoing uncertainty regarding the accuracy and timeliness of financial information", among other concerns.
Mr Clark said "the reduced loan facility will not impact our sustainability but is an indicator that we must improve our financial position".
