The King Island Council is proposing a five per cent increase in rates for 2022/24 – less than increases proposed in other Tasmanian council areas and less than the council cost index of 8.11 per cent.
The King Island Council Annual Plan and the budget report were presented to the council this week by general manager Kate Mauric.
“Council increased general rates in 2022/23 by 4.06 per cent and two per cent in 2021/22,” she said.
This followed no increase in 2020/21 which was to assist ratepayers manage the financial impacts of Covid-19.
For 2023/24, an increase in the overall rate burden of five per cent is proposed.
The increase is less than the “Council Cost Index” (CCI) which is 8.11%.
This index is calculated by the Local Government Association of Tasmania and is intended to reflect the increase in costs which impacts the local government sector.
“Other than the 2020/21 year, Council has in recent years adopted a rates increase that matches the CCI,” Ms Mauric said.
“The proposed increase, being less than the CCI, recognises the significant cost pressures on ratepayers that are currently being experienced.
“The charge to cover the cost of the Landfill levy which was introduced by the State Government on 1 July 2022 increases to $49.60 per property in order to cover the cost of the levy.
“Budgeted expenditures for 2023/24 are based on actual expenditures for 2022/23 to continue its core maintenance, service delivery, operations and regulatory compliance functions.
“This includes an allocation of $60,000 to finalise preparation of a Local Provisions Schedule to implement the State Government’s Tasmanian Planning Scheme and other planning projects.
“The budget again proposes a very significant works program using government grant funding to continue to maintain and, where necessary, improve the standard of local roads, footpaths, sport and recreation facilities and community buildings, while continuing its core asset maintenance, service delivery, operations and regulatory compliance functions.
“In the current and immediate prior year, there were significant amounts of “on-demand” grant funding programmes deployed by the Commonwealth Government in order to respond economically to Covid-19.
“The timeframes to spend the grant funding under these programs has been extended. Further rounds of funding have also been announced.
“There are also several specific purposes grants. These funding sources are being utilised in the budget year to deliver the capital projects in conjunction with Council funds.
“The budgeted end-of-year result is for a Net Underlying ‘Cash’ Deficit of $2.999m and a Net Statutory Surplus of $4.469m.
“The budget also proposes increases in service and user fees and charges of 5.0 per cent.
“Once adopted, rates notices will be formally notified and issued. Fees and charges will apply from 1 July 2023.”
Ms Mauric reported that a priority for council in the 2023/24 Annual Plan and budget will be the commencement of the physical delivery of some major projects, being the “HUB” project and the Community Gym.
“These are major projects for council, [and] have been in development for some time and, delivery will be advanced significantly in the budget period,” she said.
“Council will also be prioritising infrastructure projects which are important to maintaining the service level that the community expects.
“A number of tranches of funding made available by government assistance measures designed to stimulate the economy in the wake of Covid-19 disruptions still remain to be fully used.
“There is additional funding from these measures available in the budget year and into subsequent years. There are projects to be delivered under these programs and council will actively participate in the government assistance programs as they continue to evolve.”
The full Annual Plan FY2023/24 and budget can be viewed on the council website kingisland.tas.gov.au or from the council office 10 George Street, Currie.