Focus on reduced spending, more support in draft budget

Published on 16 June 2020

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The City of Hobart’s Finance and Governance Committee has recommended the draft 2020-21 budget be adopted at next week’s Council meeting.

The committee today endorsed the proposed budget, which includes a freeze on rates and most fees and charges and reduced spending to offset the impacts of COVID-19.

The proposed $135.5 million operating budget has been shaped by the economic impacts of the pandemic, including an estimated $17.7 million loss of revenue in the coming financial year. As a result, an operational deficit of $11.8 million is forecast.

Spending is significantly reduced in comparison to the 2019-20 budget and the $34 million capital works program is centered around maintaining and upgrading existing assets.

It is proposed that the City’s focus in the coming months will be on delivering essential services and community support. As the full extent of the pandemic becomes clearer, the City will update its budget outlook and release a mid-year revised budget and Long Term Financial Management Plan.

The proposed budget includes:

  • 0% rate increase
  • 0% increase most fees and charges (exception = $10 added for premises that have the new FOGO collection service)
  • $34.1m capital works program
  • $4.6m in COVID-19 hardship support
  • $1.2m for community, creative and business grants

The budget will be recommended for adoption at the next full Council meeting, to be held next Monday 22 June at 5 pm. The meeting will be held via Zoom and a link to the live stream will be published on the City of Hobart’s website at the start of the meeting.

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