Kingborough Council has passed its 2024-25 Budget at the 3 June Council meeting.
Kingborough Mayor, Paula Wriedt said Council faced increasing financial pressures caused by the rising costs associated with building and maintaining the community’s $850 million worth of assets.
“Unfortunately, due to inflationary factors, Council has had to increase rates by 9.8 % to ensure that it is financially sustainable and can continue to service the community and maintain its assets,” Cr Wriedt said.
“Everything now costs more to build and therefore to replace and repair.
“Councillors have listened to the feedback from our community during the consultation process and proposed rate rise has been lowered to 9.8 % from the proposed 12%.
“Unfortunately, as Council has maintained low rates over the last ten years, considerably lower than many other Councils, we must increase rates by 9.8% to create a stable our financial future.
“To put this in context, for this financial year Council is looking at an operating loss of $2.3M, as well as a draft operating loss of $2.9M in the following financial year.
“Just as it would be for any business, these losses are unsustainable, and it is our responsibility now to make sure our Council is financially stable for the future.
“It’s also important to remember that unlike businesses or other entities, Council has limited income streams with 85% of our income coming from rates, fees and charges.
“We have contained spending in areas where we can this coming financial year, whilst managing the increasing expectations for higher levels of service.
“Councillors all understand that there are cost of living pressures at the moment and that is why we have amended our Financial Hardship Policy.
“Under the existing policy there was no ability for Council to offer a remission of rates for someone experiencing financial hardship, and this provision has now been included.
“This policy will ensure that a ratepayer who demonstrates that they are experiencing financial hardship will be able to apply for Council for remission of their rates.
“$18.2 million has been allocated towards improving and maintaining our roads and footpaths, with $4.3 million for upgrades to our vital stormwater infrastructure.
“$5.5 million has been allocated for managing the community’s waste which includes over $550,000 for collecting rubbish in our public bins.
“There will also be an introduction of compostable dog poo bags for Kingborough’s 115 dog bag dispensers located throughout the community, which will reduce the amount of plastic sent to landfill.”