Zucco blasts city debt

HOBART City Council debt is expected to blow out to $85 million in the next decade with ratepayers to bear the financial burden, says a mayoral candidate.

But Hobart Lord Mayor Ron Christie has defended the spending saying it is important the council continues to invest in the city to provide essential services that residents expect.

As the Mercury reported in June, the council will borrow up to $20 million to pay for most of its expenditure items this financial year.

Alderman and lord mayor candidate Marti Zucco said council’s own figures reported in the budget show debt will rise to more than $58 million in five years and $85 million in the next 10 years.

“These are horror figures that should be of major concern to all ratepayers,” he said.

Ald Zucco said ratepayers needed to be aware this would see rates increasing at least 3 per cent.

Three years ago, the council’s long-term financial plan was based on rate increases of 2.5 per cent for seven years, then moderated to 2.25 per cent before jumping to 3 per cent.

“Council is operating on a credit card,” Ald Zucco said. “We are paying 5.6 per cent currently in interest over that time so let’s hope interest rates don’t go up.”

Ald Zucco has vowed to cap rates to CPI, if elected lord mayor.

Ald Christie said the council had a fully funded 10-year capital works program and the additional borrowings were being invested in intergenerational infrastructure to help the city keep pace with its growth.

“The council is living within its means and is fiscally responsible,” he said.

“At election time we often have pie-in-the-sky promises made, fortunately it’s a pie people don’t eat.

“There is no city in the world that is debt free — so long as that debt is well managed there is no issue.”.