Hobart City Council to borrow up to $20 million to fund budget expenditure

HOBART City Council has budgeted more than $40 million for capital works projects in the next financial year.

Hobart Lord Mayor Ron Christie says the council is proposing a “sensible budget”. Picture: SAM ROSEWARNE

HOBART ratepayers face a 2 per cent rate rise as Hobart City Council plans to spend $41.8 million on capital works projects.

According to the proposed budget estimates, council recommends a 2 per cent rate rise, or an average increase of $48 per household.

Big ticket expenditure items in the budget include: $3.3 million for the Tasman Highway Shared Bridge project; $3 million for the Brooker Bridge pedestrian and cycle crossing; $2.9 million for the Doone Kennedy Hobart Aquatic Centre refurbishment; $1 million for the Pinnacle Road guardrail renewal; and $1 million for Salamanca pedestrian works.

There is also $3.53 million slated for road spray seals, slurry seals and overlays.

The council will borrow up to $20 million to pay for most of its expenditure in the next financial year, with an underlying surplus of $1.5 million forecast.

Hobart Lord Mayor Ron Christie said this was a fair budget for Hobart ratepayers.

“It’s a sensible budget and it’s one that I think the residents of Hobart should be pleased with in terms of waste management and energy efficiency,” he said.

Council on the Ageing Tasmania acting chief executive Deb Lewis said with 70 per cent of older people living in their own homes there was still a concern surrounding any increase in expenses.

“The State Government does support council rate remission for people that have pensions or health cards with a 30 per cent reduction,” she said

“But the big issue of course is if you’re on a fixed income any increase erodes your discretionary income which is often very limited.

“Any increase on fixed income is going to be difficult to deal with.”

Ratepayers will see a reduction in landfill rehabilitation service charges, from $50 to $10 for residential properties and from $100 to $20 for non-residential properties while the Green Waste Management Service Charge for residential properties which have received a green waste bin remains at $50.

“Our community, when it comes to recycling, is one of the best and that has really helped us,” Ald Christie said.

Council wages and salaries will rise by $4 million, energy costs will decrease by $294,000 and the council expects to see an increase in parking revenue to the tune of $3.14 million following the rollout of the council’s smart meter system.

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The council will also contribute $875,000 to the Myer redevelopment and $250,000 has been budgeted for the Local Government election to be held in October.

The budget has no provision for the May storm and floods which devastated the city and racked up a bill in the vicinity of $25 million.

“This does not affect this budget because we don’t have all the final figures yet,” Ald Christie said.

“That’s why we haven’t put the bill in yet to the state and federal governments.”

The council will vote on the budget at a committee meeting on Wednesday night and, if it passes, it will be formally adopted at the next ordinary council meeting on Monday.