Hobart City Council budget estimates, annual plan and long-term financial plan lay bare impact of COVID-19

The new Hobart City Council budget estimates and annual plan have laid bare the ongoing impacts of COVID-19. Check out the priority projects >>

FINISHING the Central Hobart Precincts Plan to guide future development, an electric scooter trial and supporting the university’s move into central Hobart are some of the many and varied initiatives included in the newly released Hobart City Council annual plan for 2020-21.

The council’s finance committee will on Tuesday consider the 2020-21 budget estimates, annual plan and the 2021-2041 long-term financial management plan. It is proposed the estimates be adopted at the full council meeting on June 22.

“Over the coming months, council’s focus will be on delivering essential services and community support and then, as the full extent of the pandemic becomes clearer, the city will update the budget outlook and release a mid-year revised budget and long-term financial management plan,” the finance report said.

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Recommendations from council officers include new borrowings of $15 million.

The new loan would go towards helping the council’s cash flow, capital works and its community support package.

Modelling for the long-term financial management plan showed council’s borrowing peaking at $70m in 2021-22.

Other key aspects of the 2020-21 budget include an operating budget of $135.5 million for the delivery of services to the community, plus a community support package that includes a rates freeze.

The $34m capital works program will focus on renewing and maintaining the council’s assets.

The council is expected to face a $17.66m loss of revenue for 2020-21, but this will be offset by about $6.1m through decreases in labour costs and in materials and services.

Hobart Myer employee Trish Guinane excited the store has reopened. Picture: LUKE BOWDEN

Next financial year also will see the council make its last $875,000 payment to department store giant Myer, as part of the agreement struck between the two parties, plus Icon Complex developer ­Emmanuel Kalis, in October 2020, to assist in getting the ­development off of the ground.

The annual plan lists major initiatives for the year, including completing Salamanca Place upgrade works, managing the designs for the New Town retail precinct, progressing the Elizabeth St retail precinct and supporting the University of Tasmania’s move into central Hobart.

Implementing the single use plastics ban by-law, drafting the Hobart Transport Strategy 2030, initiating an electric scooter trial and completing the Central Hobart Precincts Plan to guide future development also are listed.

The long-term plan showed the capital works program over the next 10 years would be funded mainly by taking on debt. Current estimates indicated about $45 million of new borrowings would be required over the next six years.