Hobart and Glenorchy city councils endorse rate increases for 2019-20 financial year

Hobart and Glenorchy city councils have endorsed rate increases for the 2019-20 financial year, with one council going against their officers’ recommendations. Find out how much extra you will pay.

Hobart and Glenorchy city councils have endorsed rate rises.

HOBART ratepayers will pay on average $1.30 more a week next financial year after council voted to reduce the rate increase by 0.25 per cent.

An amendment moved by Alderman Simon Behrakis reduced the rate increase from 3.5 per cent — as recommended by council officers — to 3.25 per cent. It was voted through 7-4.

The result means the council’s estimated budget surplus for the 2019-20 financial year decreased by $210,000 to $550,000.

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General manager Nick Heath strongly cautioned elected members against reducing the rate increase.

He said the city would cope in the short term but it could create a liability for future budget surpluses.

Mr Heath said the council’s long term financial plan was based on maintaining a surplus of 2 per cent of revenue — which meant they should be budgeting for a $2.8 million surplus next financial year.

Finance and governance committee chair Alderman Marti Zucco said the council needed to be smarter in what they do.

Alderman Marti Zucco. Picture: PATRICK GEE

“Why is it the current ratepayers have to pay for what we’re going to do in 10 years time,” he said.

Ald Zucco said the rate increase could have been 2.7 to 2.8 per cent without the height limits poll and the Southern Cross Care decision.

Lord Mayor Anna Reynolds said the council had to be “financially responsible”.

Hobart Lord Mayor Anna Reynolds looks on as Deputy Lord Mayor Helen Burnet speaks. Picture: PATRICK GEE

“As a council we continue to face rising costs of materials and services and this also needs to be taken into account,” she said.

“Despite this, we are pleased to be able to freeze the levies related to kerbside waste collections.”

Council will spend $37 million on capital works in the next 12 months, including the $5.6 million first phase of the Doone Kennedy Hobart Aquatic Centre refurbishment.

Glenorchy City Council voted on Monday night to increase rates by 2.5 per cent for residential and non-residential ratepayers — significantly less than the 12.5 per cent rise they faced this time last year.

Glenorchy has aimed to deliver a $191,000 surplus in 2019-20.

Glenorchy Major Kristie Johnston.

“Council’s focus has been on delivering a balanced budget that builds on our ongoing work to manage finances prudently to achieve long-term sustainability,” Glenorchy Mayor Kristie Johnston said.

She said negotiating a five-year payment plan for the Board of Inquiry costs had improved the budget position.

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