Council Meeting

Long Term Financial Plan

Kingborough Council discussed updates to the Long Term Financial Plan (LTFP) at the 16 May meeting.

Mayor, Paula Wriedt said it was good governance to have a ten year framework that demonstrated how Council would be financially sustainable.

“Without effective financial planning Council will be unable to meet the community’s changing needs,” Cr Wriedt said.

“Underpinning our financial direction are 6 strategic actions that are making sure we are fiscally responsible and good financial managers.

Cr Wriedt said the strategic actions for Council were:

  • Delivering an underlying surplus,
  • Keeping future increases in operating expenses lower than revenue increases,
  • Sustainably funding asset renewal,
  • Ensuring Council is a low rating Council amongst the Greater Hobart Councils,
  • Using debt only to support strategic investment in new infrastructure; and
  • Being open and transparent with the community in relation to financial plans.

Mayor, Paula Wriedt said that the LTFP assumes that a general rate increase of 2.8% annually throughout the life of the plan.

“Despite Hobart’s Consumer Price Index increasing to 5.8% this quarter, Council has chosen to endorse the LTFP based on annual general rate increases of only 2.8%.

“Understandably any increase to Kingborough’s General Rates is going to be undesirable for the community but Kingborough Council operates in the same economic climate that affects everyone.

“Though the cost of operating business is going up, Council understands that directly passing the full cost increases onto rate payers would be difficult for many.

“Everyone is experiencing cost of living increases, but as a Council we are being fiscally conservative and have budgeted for a small increase of 2.8% to the General Rates for the 2022-23 financial year.

“Of the seven biggest Councils in the State, Kingborough has had the lowest average rates per rateable property over the last ten years, and this can only come about through sound financial management,” Cr Wriedt said.