Glenorchy to sell Derwent Entertainment Centre as ratepayers face 12.5 per cent rate rise
A HEFTY rate rise and the possible sale of the Derwent Entertainment Centre are on the agenda for the Glenorchy City Council as it seeks to get back on track financially.
Politics
Don't miss out on the headlines from Politics. Followed categories will be added to My News.
GLENORCHY ratepayers are in for a tough financial year with a rate increase of 12.5 per cent planned by the council.
More than 150 locals gathered at the Moonah Arts Centre to listen to Glenorchy City Council Mayor Kristie Johnston speak about the new rate rise on Tuesday night.
Tony Webb, who has lived in Glenorchy for 12 years, said there was no other way for the council to get back on its feet.
“I thought it was very clever of them to initially say it could be up to 20 per cent and then scale it back,” he said.
“There’s no other way of getting back on track but it’s unfortunate that I have to pay the bills of those people who have now left the council and can’t be chased for the money.”
MORE: RATEPAYERS WILL COP BRUNT OF INQUIRY COSTS
West Moonah homeowner Bill Pearson, who runs the Jian Shen School of Tai Chi, said the rate rise was a step in the right direction.
“I admire Kristie’s ability to stand up in front of all of the ratepayers and be honest about what has happened and commit herself to improving the mistakes of the past,” he said.
“The rise won’t fix the problem immediately but it’s a step forward in the right direction.”
The council had been talking about a rate rise of up to 20 per cent in previous months.
Alderman Johnston said households would see an average rates increase of $134 a year if the 12.5 per cent rise was given the tick of approval.
“It isn’t a fair situation and our community is paying for the issues of misconduct from the past,” she said.
“But nonetheless, that is the situation and we need to deal with those issues and we need to deal with them now.”
A damning Integrity Commission report handed down in State Parliament last month made findings against two former senior Glenorchy City Council officers and a former mayor over attempts to improperly gain financial benefits of up to $1 million.
MORE: GLENORCHY THREE SOUGHT BENEFITS
In a probe codenamed Pyramid, the Integrity Commission investigated the conduct of former Glenorchy general manager Peter Brooks, director of corporate governance and general counsel Seva Iskandarli, and former mayor and later alderman Stuart Slade.
The State Government has said the costs of the $887,000 Board of Inquiry report could be paid back over five years instead of three years.
“If council were to do nothing we would end up with a $1.8 million deficit and with a negative cash balance by 2021,” Ald Johnston said.
“Council has looked seriously at our financial position, left no stone unturned and looked for every saving and revenue measure possible to reduce the pressure on our community.
“This ensures council’s finances are sustainably managed and results in a $49,000 surplus.”
The council is looking at selling the Derwent Entertainment Centre, which costs about $1 million each year to run.
The council also plans to shut down the $21 million Derwent Park Stormwater Harvesting facility, for which the Federal Government contributed $9.2 million.
The budget makes no mention of any payment made to the duo at the centre of the Board of Inquiry but Ald Johnston hinted the information may be available later in the year in the council’s annual report.
Aldermen will vote on the proposed budget at a council meeting on Monday.
Political party seeks traction in Tassie, backed by rogue ex-Libs
A pair of former Liberal MPs who sensationally plunged the state government into minority last year are backing another political party as it tries to gain a foothold in Tasmania.
Libs reveal when bill to restrict UTAS move will be debated
Legislation that would limit the University of Tasmania’s ability to sell land at its Sandy Bay campus site will soon be debated in state parliament, the Rockliff government says.