Hobart City Council virtual meeting to consider coronavirus response as it anticipates massive revenue losses
The Hobart City Council is facing a multi-million dollar fall in revenue by the end of the financial year – and is predicting the worst is yet to come.
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THE Hobart City Council is anticipating losing more than $6 million in revenue in a four-month period due to the coronavirus – and is predicting even greater losses next financial year.
The council has already taken out a $20 million loan to keep cash flowing.
It will hold its first online meeting on Monday night, with the Lord Mayor, elected members and staff logging into the meeting via Zoom. The public will be able to watch via a YouTube link that will be available on the council’s Facebook page prior to the start of the meeting.
One of the main items on the agenda is a financial report into the council’s COVID-19 response since March.
The report found anticipated losses of revenue to the end of June are expected to total between $6.19 million and $6.89 million and include a loss of $3.8 million to $4.5 million from parking alone.
About $1.5 million is anticipated to be lost due to the closure of the Doone Kennedy Hobart Aquatic Centre.
“In order to manage the issues with cash flow resulting from these significant drops in revenue, the capital works program has been reviewed, operational expenditure significantly reduced and a loan previously approved by council for 2019-20 of $20 million has been taken up,” the report by general manager Nick Heath states.
“While we believe these actions will provide a sufficient cash flow until 30 June, we will provide further advice on the impact on the council’s overall financial position for 2019-20 at the 25 May council meeting.”
Work has also started on the draft 2020-21 budget, with predictions in the first quarter of a 40 per cent reduction in parking revenue, 25 per cent reduction in rents and a 50 per cent reduction in the TasWater dividend.
“The total is estimated at $17 million and is hopefully the worst-case scenario,” the report stated.
“The final outcome is uncertain to say the least and will be determined by how quickly
the city returns to ‘normal’.”
The only planning item on the agenda for Monday night is a vote on an extension of operating hours for a North Hobart karaoke bar.
The Superstar Karaoke bar, located next to the State Cinema, applied to extend its operating hours until 5am on Friday and Saturday nights and 3am on all others.
It currently closes at midnight.
The application is recommended for refusal because it had “not been demonstrated the noise impact of the late night/early morning operation would not have unreasonable impact on residents in the adjacent inner residential zone”.
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