It’s unfortunate for the Adelaide Hills Council’s ratepayers that they could have to shoulder a financial burden to get the council’s finances back on track.

In its latest draft budget, the council suggested increasing rates by an average of 6.2% – almost three times CPI.

The council has historically kept rate increases fairly close to CPI and the larger-than-normal increase is the result of recent reviews of the council’s financial management.

Those reviews found that, among other things, depreciation and salary expenses had previously been counted as capital, not operating, expenses.

The council has indicated that this may not have been best practice, and that correcting it will impact its operating budget, resulting in large projected operating deficits.

The council’s proposed rate increase is not yet finalised and will go to public consultation prior to being adopted.

But, given the state of its budget, it may well be that the council doesn’t have any other choice but to slug ratepayers with a larger rate increase to reduce those projected deficits and bring future budgets back to black.

Even if the council was able to justify approving a smaller rate increase this year, it will ultimately be the ratepayers who bear the consequences of the council’s apparent financial position – whether that is in this budget or a future budget.

Inflation is lower than last year, but many people are still feeling the pressure of a cost of living crisis.

If ratepayers are hit with a 6.2% average rates increase, they could be forced to make difficult decisions about their household finances.

So it’s important that the council delivers on its promise to get the budget back to a healthy position so that ratepayers aren’t left carrying that burden for any longer than they need to.