Glenorchy City Council 2021-22 budget proposes 2.5% rate rise and return to surplus

If you’re a homeowner in the Glenorchy City Council - find out how much your rates are likely to go up and how soon you can expect a return to surplus. DETAILS >>

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A RECORD capital works program, modest rate increase and a return to surplus five years earlier than expected is on the cards for one greater Hobart council.

The Glenorchy City Council is set to vote on its proposed 2021/22 budget at a special meeting on Monday night.

The budget forecasts a deficit of $1.3 million for the next financial year, but also predicts a return to surplus by the 2025-26 financial year – five years earlier than predicted when last year’s budget was adopted.

The council proposes to increase rates by 2.5 per cent for the third year running.

The rate rise was the same last year, but all ratepayers were rebated the increase as part of a Covid-19 rates relief measure.

That rebate will not be applied again this year.

There will also be increases in council’s waste collection fees of between $12 and $17

for most households.

The record $25m proposed capital works program includes $8.4m for a range of road and transport projects, $3m for road resurfacing and $2.2m on improving footpaths.

A total of $4.7m would go towards new sport and recreation facilities, funded by federal government grants, such as new ‘destination’ playgrounds at the Montrose Foreshore and Giblins Reserve and upgraded soccer facilities at KGV.

Montrose Bay Foreshore. Picture: Liz Osborne.

The life of the Jackson St landfill will be extended by up to 10 years thanks to an injection

of $3.5m.

The relocation of the Southern City BMX track from the Berriedale Peninsula next to Mona to Tolosa Park will cost $460,000.

Acting Glenorchy Mayor Bec Thomas said the upcoming budget had been developed to ensure the community can continue its recovery from the COVID-19 pandemic and set the city up to

thrive in the long-term.

“In developing the proposed 2021/22 budget, our focus has been on safety, sustainability,

and growth,” she said.

“This proposed budget is about improving council’s financial stability, identifying savings

measures and investing in economic growth initiatives to capitalise on the unprecedented

levels of development and investment in our city.

Acting Glenorchy mayor Bec Thomas. Picture: Chris Kidd

“Despite the steps we took to limit the fallout from Covid, and signs of growth in our economy, it will still take ongoing discipline and careful financial management to get our

operating budget back in the black.

“However, we’re now aiming to be back in surplus by the 2025-26 financial year – five years

earlier than we originally predicted.”

REVEALED: How much your rates are likely to increase

THE Hobart City Council is set to seek approval to borrow another $5 million on top of the $15 million in borrowings approved last financial year.

At a special joint meeting on Wednesday night, the council will consider its budget estimates for 2021-22 as well as its draft annual plan and long term financial management plan.

The budget proposes an average residential rate increase of 2.73 per cent or an extra $70 a year.

The report to be approved by council recommends approving new borrowings of $5 million, noting the council had consented to the borrowing of $15 million in 2020-21.

It is anticipated to be the last year funds are planned to be borrowed despite previous long term financial plans foreshadowing more would be necessary in the future.

New Hobart City Council chief executive officer Kelly Grigsby. Picture: ALASTAIR BETT

As a result of a successful application to the state government’s three year interest free loan scheme for councils, where the City of Hobart nominated infrastructure projects estimated to cost $20 million and so the council has approval pending for a borrowing facility of up to that amount.

Working with an operating budget of $141.2 million, an underlying surplus of $1.49 million is forecast for 2021-22, partly due to expected growth in the rate base as a result of the increased development happening across the city.

The report noted parking fees and charges for car parks and on-street parking of $19 million were forecast to increase back to pre-Covid-19 levels.

“The City is acutely aware of the continued and lasting impacts of COVID-19 on the

community and has proposed a budget that includes a responsible rate increase to ensure the council continues to offer service delivery that meets the community’s expectations, including a $42.9 million capital works program which supports the ongoing growth of the city,” the council report said.

“Covid-19 has presented an opportunity for the council to reconsider its long term financial management plan and redefine what the pathway to sustainability looks like, with a particular focus on the growth the city is currently experiencing and is likely to continue to experience for some time.”

A $685,000 extension to the Intercity cycleway is proposed as part of the Hobart City Council’s 2021-22 budget.

Projects listed in the capital works program include a combined total of $16 million on building, road, bushland and parks infrastructure renewal, $1.7 million for bicycle facilities on Argyle and Campbell Sts and $685,000 on an extension to the Intercity cycleway.

The proposed budget will be considered by the full council at its meeting on June 21.

JobSeeker: Tassie on top with lowest numbers in the nation

By Claire Bickers

ABOUT 10,000 fewer Tasmanians are relying on welfare payments than at the height of Covid-19 restrictions.

And despite having the highest unemployment rate in the nation at 6.2 per cent, Tasmania is the closest state in the nation to getting the number of JobSeeker or Youth Allowance recipients back to pre-pandemic levels.

Ahead of a visit to Hobart on Wednesday, Federal Social Services Minister Anne Ruston said the state’s recovery was “well underway”.

“We know there are jobs out there,” she said.

“Job vacancies for the month of April were up 75 per cent on where they were the previous year.”

Senator Anne Ruston near her Electorate Office in Renmark. Picture: Tom Huntley.

Senator Ruston said it was “no mean feat” to be the closest state to getting the number of people relying on welfare payments back to pre-pandemic levels.

Tasmania had almost 30,000 people receiving JobSeeker and Youth Allowance in May.

That’s about 27 per cent higher than the 23,600 Tasmanians relying on the payments at the start of March 2020, and 25 per cent lower than the 40,000 Tasmanians relying on the payments last May.

In contrast, Victoria still has 47.2 per cent more JobSeeker and Youth Allowance recipients than before the pandemic, New South Wales has 45 per cent more and Queensland has 37.7 per cent more.

South Australia has 29 per cent more people receiving the payments than before the pandemic, while in WA the rate is 28.8 per cent higher.

Senator Ruston will be visiting accommodation for women and children fleeing domestic violence while in Hobart, and affordable housing being built under the Hobart City Deal.

Originally published as Glenorchy City Council 2021-22 budget proposes 2.5% rate rise and return to surplus