How we got to this number:

The rate adjustment for 2026/27 is based on the Adelaide March Quarter CPI (4.9%), plus a 0.85% rate sustainability factor as provided for in the adopted Long Term Financial Plan 2025-35. This would result in an average total rate increase of 5.75% for 2026/27.

However, Council recognises the cost pressures affecting businesses and the broader community and therefore proposes to help ease this burden by removing the 0.85% sustainability factor and to increase the rates by less than the March quarter CPI figure. As a result, rates are proposed to increase by 4.5%.

This is a significant decision as it will adversely impact the long-term sustainability of Council’s Long-Term Financial Plan. To mitigate this impact, Council must reduce expenditure in 2026/27 and identify further cost reductions in future years.

In 2026/27, Council is proposing to reduce its funded operating project budget from $500,000 to $210,000. As a result, only three priority projects will be delivered:

• Roadside Vegetation Management Data Collection
• Development of the Alexandrina Wastewater Infrastructure Plan
• A community-led tree planting program.

These initiatives will provide critical data and strategic planning to inform a preventative roadside vegetation management program, support planning for future wastewater growth in Alexandrina, and deliver a modest, community-led tree planting initiative.

In addition to the funded projects listed above, there is a large number of additional priority actions from the Strategic Delivery Plan 2025-2035 and these are incorporated into the base budget and listed in Appendix 1 of the ACP.

In 2026/27, Council proposes to reduce its miscellaneous capital project budget from $500,000 to $246,000. Only two priority projects will be delivered: replacement of fuel pods at the Goolwa and Strathalbyn depots, and continued investment in Council’s ongoing information technology.

The fuel pod program will improve fuel security and the efficiency of tracking and distributing fuel across Council’s fleet. The information technology program will enable Council to enhance operational efficiencies through technology while strengthening the protection of critical data through improved cyber security.

In 2026/27, Council proposes to spend $34.8 million on the capital renewal and new programs, supported by $7.641 million of grant funds. These programs were carefully considered and reduced by $5 million, compared to the adopted LTFP. The proposed reduction is a temporary pause in Council's main capital program, helping to mitigate short-term elevated costs associated with fuel constraints and economic uncertainty, and strengthen Council’s long-term financial sustainability through a significant reduction in debt.

It is important to note that high-priority activities such as the Middleton and Ashbourne stormwater projects remain fully funded in 2026/27, along with critical road, footpath and building works.

Council’s Continuous Improvement Program focuses on future readiness and organisational efficiency. As part of the 2026/27 program, Council will strengthen the governance arrangements and development of a 30-year Infrastructure Plan for Alexandrina Wastewater to support future residential growth. It will also progress a Staff Resourcing Plan, aligned with growth forecasts, to ensure appropriate staffing levels now and into the future. Lastly, it will continue with the suite of Service Reviews focusing on the effectiveness and alignment of Council’s services.

Overall, Council’s total borrowing at 30 June 2027 is projected to be $42.3 million, compared with $49.0 million in the current Long-Term Financial Plan. This reduction in debt is expected to lower interest costs by $252,000 in 2026/27, significantly easing pressure on rates.

From 2027/28, this interest rate saving will provide $250k per year, for the life of Council’s Long-Term Financial Plan, which will support an annual proactive roadside vegetation maintenance program.

This data was presented at the 11 May 2026 Council Member Workshop.

Operating expenditure is the day-to-day cost of running Council services.

This includes:

• staff wages
• maintenance
• utilities
• delivering programs for the community.

Capital expenditure is spending on long-term assets or major upgrades.
This includes:

• buildings
• roads
• footpaths
• parks/ reserves
• community facilities.

For all projects and initiatives, visit the appendices.

• Appendix 1: A2040 Strategic Delivery Plan Priority Actions 2026/27
• Appendix 2: Operating Projects
• Appendix 3: Capital Renewal Projects
• Appendix 4: Capital New and Upgrade Renewal Projects

• Advocacy, strategic planning and reporting
• Business solutions and information management
• Communications and engagement
• Council and member support
• Customer service
• Fleet and plant management
• Financial management
• Governance
• Human services
• ICT operations and digital transformation
• Organisation development
• Property and land management
• Risk management and internal audit
• Strategic procurement
• Work health and safety.
• Development assessment planning and building
• Development engineering
• Development and building compliance
• Strategic land use planning.
• Climate change adaptation
• Natural resource management
• Stormwater management
• Alexandrina Wastewater planning and management
• Fleurieu Regional Waste Authority (Local
• Government Regional Authority)
• Adelaide Hills Regional Waste Management
• Authority (Local Government Regional
• Authority)
• Arts and culture
• Cemeteries management
• Community development
• Community safety, environmental health, and
• regulatory services
• Emergency management
• Economic development and business support
• Library services
• Community facilities
• Open space and recreation facilities
• Visitor services.
• Infrastructure and asset management
• Infrastructure project planning and delivery
• Traffic investigations and planning
• Community transport, including Southern Communities Transport Scheme – Partnership City of Victor Harbor