South Australian council hikes rates by 12% amid questions over 'missing' $4.5m

Residents of the District Council of Peterborough in South Australia are facing a 12% rate hike, the second consecutive year their rates have become the highest in the state. This increase is four times the current rate of inflation, adding financial pressure on the approximately 1,500 residents.

“

As a consequence, we're now in a [situation] where the CWMS account has little if any funds.

The council is under fire for allegedly misusing $4.5 million that was specifically set aside for repairing the community's wastewater management system. This comes as the council reported an operating deficit of over $500,000 in the last financial year and has seen its fifth chief executive officer depart within two years. The latest budget forecast projects a $240,000 deficit for the upcoming year, with the council also needing to repay funds from the wastewater management account.

“

It's a practice in the sector that councils can borrow from one account to another. However, those borrowings need to be accounted for.

Acting chief executive Henry Inat confirmed that the $4.5 million from the Community Wastewater Management Systems (CWMS) fund was used by previous management for "other council expenses." He acknowledged that the CWMS account is now nearly depleted. Inat explained that while borrowing between council accounts is a common practice, such borrowings must be properly accounted for. He stated that efforts are underway to recoup funds and reinvest them into the CWMS system, acknowledging the challenge alongside other service delivery priorities like road maintenance.

“

We need to work through a process to recoup funds so we have the capital to then invest back into the CWMS system.

Peterborough, located 250 kilometers north of Adelaide, faces high costs for delivering water and power. The annual wastewater rate for residents has increased from $678 in 2025/26 to $712. Despite the significant rate increase, the council's operating ratio for the 2026/27 financial year is forecast to remain negative at -4%. The council has laid off 10 staff members over the past two years, with Inat asserting that further revenue will not be generated through staff cuts. He emphasized the council's commitment to prudent financial management rather than seeking government assistance.

“

We're not looking for a government bailout.