Clarence City Council set to avoid going into deficit next financial year despite impacts of the COVID-19 pandemic

Clarence City Council is set to achieve what many other councils have not been able to due to the impacts of the pandemic. Find out more >>

CLARENCE City Council is set to achieve what many other larger Tasmanian councils have been unable to do — not going into deficit next financial year.

As councils across the state finalise their budgets for 2020-21 and assess the impact of the COVID-19 pandemic, the Eastern Shore council will vote on Monday on its budget, which will deliver a record works program with no general rate increase.

Clarence Mayor Doug Chipman said the council’s costs had been cut and years of strategic financial planning had put the council in a position to avoid a deficit.

Clarence Mayor Doug Chipman at Bellerive. Picture: ZAK SIMMONDS

Major proposed cuts will come from internal expenses, aldermanic expenses, and a 12-month freeze on both staff salary increases and new positions.

“The budget we will be discussing is constrained and focuses on core and essential services that are most important for our community,” Ald Chipman said.

“Council has made significant cuts to the estimates — saving around $1 million — which has allowed us to balance this budget with no deficit, despite the upheaval caused by COVID-19.

“We are proud to be delivering a balanced budget that seeks to avoid placing a long-term burden on our ratepayers by entering into major debt.”

The proposed $22.7 million capital works program is an increase of $5.7 million on the previous year and will include a significant road reseal program, footpath renewal and a $1.5 million pavement reconstruction at busy Pass Rd.

Ald Chipman warned there could still be an impact on the delivery of some council services.

“There is some hardship still to come for our community, which is why council is utilising the funds available to us in such a way as to minimise long-term debt,” he said.

Last Monday, the Hobart City Council approved its budget estimates for 2020-21, which included borrowing a further $15 million and an operating budget of $135.5 million for service delivery to the community, plus a support package including a rates freeze.

The council is expected to face a $11.8 million loss for the year.

Glenorchy City Council also recently passed its budget, with a budget deficit of $9.6 million forecast. Kingborough Council has estimated a $2.4 million underlying deficit for next financial year.

Launceston City Council approved its budget earlier this month, with an underlying deficit of $11.3 million forecast while Burnie City Council is set to be in the red by $2.2 million.