Port Augusta City Council recognised for improved financial sustainability in ESCOSA review
Essential Services Commission of South Australia (ESCOSA) has recognised Port Augusta City Council for significantly improving its long-term financial sustainability in its latest statewide review. The independent review, conducted every four years, assesses the long-term financial sustainability of councils across South Australia. Port Augusta City Council received a rating of “Mostly Sustainable.”
Only seven of the 19 councils reviewed this year achieved this rating, and across the full four-year cycle of 68 councils, just 15 councils were assessed as Mostly Sustainable. Importantly, this represents a significant improvement for Port Augusta, which previously held a historical rating of “Unsustainable.”
Mayor of Port Augusta, Linley Shine, said the result reflects the work Council has undertaken to strengthen its long-term planning and financial management. “Moving from an ‘Unsustainable’ rating to ‘Mostly Sustainable’ demonstrates the strong strategic planning and asset management practices Council has been putting in place,” Mayor Shine said. “It’s encouraging recognition from ESCOSA that Council is on the right path, we have come a very long way financially and it reflects our commitment to responsible financial management on behalf of our community.”
While the current result is positive, ESCOSA noted the city’s forward outlook as “Potentially Unsustainable,” highlighting ongoing financial challenges facing regional councils. Chief Executive Officer John Banks said Council has been transparent with the community about the financial pressures it continues to face. “The ESCOSA review confirms the progress Council has made, but it also highlights the structural challenges regional communities like Port Augusta are dealing with,” Mr Banks said.
“One of the biggest issues is rating equity. Port Augusta hosts major renewable energy infrastructure, including large wind and solar farms that play a key role in South Australia’s clean energy transition, yet they do not contribute to council rates.” “This represents an estimated $600,000 in lost revenue each year, which is income that would normally help fund roads, infrastructure and community services.”
Mr Banks said the city’s role as a regional service hub also impacts Council’s financial position. “Port Augusta supports a wide range of essential services including health and aged care, disability support, childcare, youth services and homelessness programs,” he said. “Many of these organisations receive full or substantial rate exemptions under legislation, resulting in a further $600,000 or more in foregone income annually.”
Declining government grants have also placed increasing pressure on local ratepayers. “Port Augusta has made strong progress, and we remain focused on building a financially sustainable future for our city. Twenty years ago, government grants were roughly equivalent to council rate revenue. Today they make up only about 40 per cent of rate revenue, meaning local communities are funding a much larger share of council services.”
Council continues to strengthen its long-term financial planning through a range of measures, including a full asset revaluation in 2025, updated Asset Management Plans and the introduction of indexation in the 2025/26 budget to reflect rising asset values and inflation. Council remains committed to investigate projects that improve liveability, tourism and economic growth.
Mayor Shine said initiatives such as the Westside Jetty and efforts to attract new residents and investment will support the city’s long-term future. “Population growth is important for regional communities like ours, as it helps spread the cost of infrastructure and services across more ratepayers,” she said.
The ESCOSA review will help inform Council’s upcoming Annual Business Plan and Budget, with community consultation forming an important part of the process. “Council will continue working closely with the community to identify new revenue opportunities, find cost savings and ensure we remain financially sustainable into the future,” Mayor Shine said.
For further information please contact Council’s Media and Communications Officer on (08) 8641 9100
John Banks
Chief Executive Officer
Port Augusta City Council