Peterborough residents Molly Moate, Harry Moate and Christopher Dean have raised concerns about the council's 10 per cent rate hike. (ABC North & West: George Yankovich)

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.

Finances 'don't appear to be current'​

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.

Peterborough District Council chief executive officer Kristen Clark and Mayor Ruth Whittle. (Supplied: Peterborough District Council)

"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.

"A combination of rate rises and cost-saving measures will need to be considered that will result in us reaching a balanced position ideally within three years."

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.

Peterborough District Council has pushed ahead with a 10 per cent average rate hike. (ABC North & West: George Yankovich)

Ratepayers speak up​

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."

Bridget Woods says the rate rise will have "a huge effect" on the town. (ABC North & West: George Yankovich)

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.

Steamtown Heritage Rail Centre in Peterborough opened in 2009 in a bid to drive tourism. (Supplied: Peterborough District Council)

"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 go 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".

Christopher Dean will pay an extra $240 in rates this year. (ABC North & West: George Yankovich)

"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."

Other financial hurdles​

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".

Written by: George Yankovich, ABC News.

 

[Suzanne rose]

I'm with Canterbury Council in Sydney and my rates increased by $240 this year. They are now $2400.

 

[June E]

All councils seem to putting up rates but I bet they gave themselves a pay raise first !

 

[Benny's Light]

My rates have gone up this year by about $500. It is getting ridiculous with the huge increases. Why do we need so many levels of government. The concept of councils needs rethinking to a more efficient way of managing the local area.

 

[Kayer02]

Our yearly rates have risen to $4350..It's absolutely ludicrous. Our parks, footpaths and numerous other things are worse than a 3rd world country. Our council make stupid decisions that just waste our ratepayer dollars. Some things are then destroyed by vandals, taken over by drunken & sometimes violent indigenous river/park dwellers and no-one is able to take advantage of these projects, then add fireworks ($ 10,000-20,000 a pop) , in fact too many things to name. On top of all of their bad decisions they then allot themselves a pay rise. My 8 year old grandson could budget better.

 

[Clancieblue]

Bet I could go into their council chambers and cut some waste, and save them some money.
I wonder how many of the staff have company cars and free excursions.

 

[Robbo3006]

Councils still think we work for them, a breeding ground for corrupt politicians, always taking, eff councils, they're all corrupt.

 

[7777]

Our yearly rates have risen to $4350..It's absolutely ludicrous. Our parks, footpaths and numerous other things are worse than a 3rd world country. Our council make stupid decisions that just waste our ratepayer dollars. Some things are then destroyed by vandals, taken over by drunken & sometimes violent indigenous river/park dwellers and no-one is able to take advantage of these projects, then add fireworks ($ 10,000-20,000 a pop) , in fact too many things to name. On top of all of their bad decisions they then allot themselves a pay rise. My 8 year old grandson could budget better.

Dear member Kayer02, thankyou for your post. This sounds like a corrup council. Try calling or emailing your Member of Parliament for your area, the Ombudsman, the Major or even give the Current Affair program details of the issues that you mentioned in your post. I am sure that one of these departments will be intetested to do a financial audit on the councils irresponsible way in which it is spending rate payers money. Our entire council were sacked because it was found that council funds were being spent on gifts, such as golden pens and Champaign to council staff for doing their hard work. What hard work, more like waiting for their ala carte UBA delivered meals, that was paid out of council funds. Wishing you success in your communication with the above mentioned departments. Hopefully after a full investigation will be done on the current corrup council, a more responsible and humane council will take charge. God bless,