Rate rises and delays to long-touted nightlife upgrade in city budget
Adelaide City Council has flagged another significant rate increase above inflation in its 2026-27 draft budget, also putting the brake on upgrades to one of the city’s most visited nightlife precincts.
The Adelaide City Council is planning to raise rates by 5.6 per cent on last year, which would see the average residential rateable property pay an increase of $127 compared to 2025-26 rates.
Its draft budget reveals the increase in rates would see the average residential rateable property be charged $2387 for the year, subject to the property’s valuation.
The rate rise will affect approximately 30,000 CBD and North Adelaide residents as the City of Adelaide continues to pursue its goal to increase the population to 50,000 by 2036.
While commercial offices would face a rate increase average of $735 next financial year and commercial shop owners can expect an additional $526 tacked onto their bills.
Lord Mayor Jane Lomax-Smith said the released draft was a “practical budget for uncertain times” and “lays the groundwork for an ambitious future for Adelaide”.
“I encourage all residents, businesses and stakeholders to review the draft budget and have their say. This feedback will help shape the final plan and ensure it reflects the priorities of our community.”
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An update was also provided on the City of Adelaide’s plan to rejuvenate city streets in the draft plan, with $13.6 million invested into its main street revitalisation program.
Major main streets across North Adelaide and the CBD assigned for upgrades include O’Connell Street, Gouger Street, Melbourne Street, Hutt Street and Hindley Street.
But the Hindley Street revamp, which is expected to cost a total of $26.7 million, was expected to see further delays after InDaily previously reported that construction was earmarked to start in early 2025. Now there is no construction start date in the budget – but it does outline an expected completion date of 2030.
City of Adelaide’s director of city infrastructure Tom McCready told InDaily that Hindley Street work would be revisited following the conclusion of funding discussions with the state government.
“Design work on Hindley Street was taken up to 70 per cent completion while discussions occurred between the City of Adelaide and State Government over potential additional funding,” McCready said.
“Conversations are ongoing, noting that the staged program announced in the draft business plan and budget is about minimising disruption in the city as works on five main streets start to commence.”
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Council will instead look to pursue grant funding opportunities and commence detailed design work across 2026/27.
Initial designs for the Hindley Street upgrade were first released in 2024, featuring narrowed streets and widened footpaths to allow more outdoor dining and three upgraded pedestrian crossing to improve safety.
Lomax-Smith said the “crucial” main street projects would be delivered in stages to minimise disruptions to businesses and day-to-day functions in the CBD and North Adelaide.
“We recognise that upgrading all main streets at once would place significant pressure on traffic movement, local access and business activity,” Lomax-Smith said.
“Instead, council has adopted a carefully sequenced rollout of projects that minimises disruption and supports continued access to businesses and services. Importantly, it ensures the city remains accessible and operational throughout the works program.
“Our planned main streets program is crucial for the city and North Adelaide, but no one wants the place to come to a standstill while we carry out these works, so we have made a sensible decision.”
Capital works on O’Connell Street, Gouger Street, and Hutt Street were expected to begin within the next 12 months as completion dates for each street are scheduled between mid-2028 and early 2029.
The staged works for North Adelaide’s Melbourne Street will begin with the installation of two wombat crossings. Another $1.3 million would be invested in the Melbourne Street upgrades across the next 12 months as the council looks to complete upgrades by late 2029.
Council projected borrowings to be $31.6 million in the draft budget, a $17 million decrease from the previous budget, while forecasting an operating surplus of $4.9 million.
The draft budget also outlines plans to undertake more than $68.8 million in asset renewal to maintain and improve the $2 billion of council owned assets such as roads, buildings, footpaths, and the Park Lands.
Consultation for the draft budget has commenced on the Our Adelaide webpage and will conclude on Tuesday, May 26.
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