Glamorgan Spring Bay Council plans 50 per cent rates hike but denies it’s in trouble




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Orford, one of the area’s main towns, is home to many retirees and shack owners. (ABC News: Mitchell Woolnough)

Residents on Tasmania’s east coast could be facing big increases in their rates bills as the Glamorgan Spring Bay Council struggles to stay afloat — but the Mayor says his team can be “trusted to right the ship”. 

At a meeting on Tuesday council will consider a proposed rate rises of 15 per cent a year for the next two years, then 12.5 per cent the year after that — close to 50 per cent over the next three years.

Mayor Robert Young said the council was not heading to insolvency and dismissed suggestions it could be a candidate for amalgamation.

“We can be trusted to right the ship,” he told ABC Radio Hobart.

“We will survive, a merger would only add to the costs.”

A “long-term financial plan” report to council states that cash borrowings are at a maximum level and cash balances are exceedingly low, with debt expected to reach $6.3 million next financial year. 

The meeting’s agenda states the council faces a significant risk of amalgamation or administration if it can not achieve financial sustainability.

‘Good value for money’

Tasmania has 29 councils and 262 councillors for a population of about 535,000 — that is one council for every 18,448 people.

By way of comparison, Victoria has 79 councils for around 6.7 million people — a rate of one council per 84,810 people.

Cr Young said the plan was “not set in concrete” and said the municipality rates were below those of councils adjacent to Glamorgan Spring Bay.

“I think our residents, and there are about 5,600 dwellings that pay rates, get very good value for their money,” he said.

“Some bridges still have to be repaired,  some storm water damage still has to be considered, there are some roads that have to be upgraded, Wielangta for instance.”

The former forestry road is being used as one of the alternative routes while the Tasman Highway outside Orford is closed to stabilise a dangerous rock face

Cr Young said it was likely the council would vote for some form of rate rise.

“We’ve worked out what we have to do,” he said. “It doesn’t mean to say we have to adhere to that [long term financial plan] it could be just a small rise … It’s a matter of discussion.”

The council agreed to help pay for the multi-million-dollar pipeline in 2016 so salmon producer Tassal could pump freshwater from Orford to its Okehampton Bay operations.

Cr Young said money borrowed to fund the Tassal pipeline had had “some effect” on the council’s finances.

“But remember Tassal pays for the water it uses and it has paid tens of thousands of dollars in revenue for the use of the pipeline to the municipality,” he said.

Orford resident Pamela told ABC Hobart she wanted the council placed into administration and to “get someone in to fix this mess … I am furious”.

Another listener, Jackie, called for more transparency.

“The community needs to be aware of what we’re actually paying for,” she said.

A Dolphin Sands resident said at present $1,200 of rates were payable on five acres of beach frontage, including waste collection — and a 15 per cent increase would equal an extra $180 a year.

Source: Thanks msn.com