Rate hike for council

KINGBOROUGH councillors have voted in favour of a rate rise, with most arguing ratepayers will still pay less, but one councillor has questioned if the increase is too low.

Under the council’s new long-term financial plan, rates will increase by 2.8 per cent every year for 10 years.

The increase will help the council achieve an underlying surplus to deliver on capital works projects.

At Monday’s council meeting, Kingborough general manager Gary Arnold said Kingborough’s rates would still be lower than other municipalities.

“Both Clarence and Hobart are 3 per cent or more in the foreseeable future,” Mr Arnold said.

“In Glenorchy, the long-term financial plan doesn’t actually give a figure … it appears they’ve got a flat rate of 2.5 per cent.”

Kingborough Mayor Paula Wriedt said 70 per cent of the council’s revenue came from rates. She said the council’s finances had been impacted by Covid.

“As a council we have very limited income sources,” Ms Wriedt said.

“We do know we’re having some difficulties with some of the capital projects and the tenders that are coming in and that’s a flow-on effect of general price rises in the building and construction industry.”

Councillor Flora Fox was concerned about the council’s financial plan and the fact that capital works projects were forcing the council to dip into next year’s budget.

“Have we undercooked the books, basically?” Ms Fox said.

“If we can’t afford capital projects, our rates will have to go up next year and the year after and yet we’re locking ourselves in to a pretty small increase if any over the next 10 years.”

Ms Fox said she was concerned the increase was not enough.

“We may have the highest income per capita in Kingborough and I don’t understand why it’s so important we keep our rates low,” she said.

“Is this really doing our community a service – especially when we’ve got massive growth and we’ve got people who really want to live here?”

Councillor Christian Street said the increase was low but supported keeping them that way.

“It’s worth remembering people actually have to pay those rates, they’re young families, they’re single parents, they’re people who live alone, they’re pensioners,’’ Mr Street said.

The council also voted to increase fees and charges by 3 per cent.