City votes to lessen pain of rate rise

HOBART ratepayers will pay on average $1.30 more a week next financial year after the council voted to reduce its rate increase by 0.25 per cent.

An amendment moved by Alderman Simon Behrakis reduced the rate increase from 3.5 per cent – as recommended by council officers – to 3.25 per cent. It was voted through 7-4.

The result means the council’s estimated budget surplus for the 2019-2020 financial year decreased by $210,000 to $550,000.

General manager Nick Heath strongly cautioned elected members against reducing the rate increase.

He said the city would cope in the short term but it could create a liability for future budget surpluses.

Mr Heath said the council’s long-term financial plan was based on maintaining a surplus of 2 per cent of revenue, which meant members should be budgeting for a $2.8 million surplus next financial year.

Finance and governance committee chairman, Alderman Marti Zucco, said the council needed to be smarter in what it did. “Why is it the current ratepayers have to pay for what we’re going to do in 10 years’ time,” he said.

Ald Zucco said the rate rise could have been 2.7 to 2.8 per cent without the poll on height limits and a court decision on rates for retirement villages.

Lord Mayor Anna Reynolds said the council had to be “financially responsible”.

“As a council we continue to face rising costs of materials and services and this also needs to be taken into account,” she said.

“Despite this, we are pleased to be able to freeze the levies related to kerbside waste collections.”

Council will spend $37 million on capital works in the next 12 months, including the $5.6 million first phase of the Doone Kennedy Aquatic Centre refurbishment.

Glenorchy City Council last night voted to increase rates by 2.5 per cent for residential and non-residential ratepayers – significantly less than the 12.5 per cent rise they faced this time last year. Glenorchy has aimed to deliver a $191,000 surplus in 2019-2020.

“Council’s focus has been on delivering a balanced budget that builds on our ongoing work to manage finances prudently to achieve long-term sustainability,” Glenorchy Mayor Kristie Johnston said.

She said negotiating a fiveyear payment plan for the Board of Inquiry costs had improved the budget position.