Northern Midlands home owners will experience a 3.42 per cent increase on their annual rate payments.
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Rate increases were approved by the Northern Midlands Council at its June meeting as a part of its 2018-19 budget.
Minimum rates for vacant, rural, public purpose and sport and recreation properties are also set to increase by 10 per cent in the new financial year.*
Northern Midlands mayor David Downie said there were three main causes for the increase in rates, with TasWater’s decision to reduce dividends to councils in 2016 playing a “small” part in the decision.
“Council has a large capital expenditure program, we have lost income from TasWater and we have debt from unpaid [Launceston] airport rates,” he said.
“These three things meant it was prudent for a small [rates] increase over [inflation].”
It’s a big capital program for a council of our size, which hopefully our community will appreciate and benefit from.
- Northern Midlands mayor David Downie
The council’s capital expenditure budget for 2018-19 was set at $16.3 million.
It included $6.88 million on community building improvements, a $3.75 million road program and $2.73 million on recreational facility improvements.
“It’s a big capital program for a council of our size, which hopefully our community will appreciate and benefit from,” Cr Downie said.
“I believe the council has put together a strong budget.”
The increases were in line with the council’s long-term financial plan, according to its corporate services manager Maree Bricknell.
“Expected expenditure increases...allow [the] council to maintain existing service levels, fund a small number of new initiatives, continue to allocate funds to renew municipal infrastructure and aim to achieve a small underlying operating surplus result,” she said.
Ms Bricknell said new initiatives for the financial year included kerbside waste collection for Rossarden, Kalangadoo and Lake Leake at a cost of $30,000 and “special strategic projects” valued at $100,000.
The council’s budget had an operating surplus of $1.78 million and an underlying suprlus of $5426.
*The original article stated rates instead of minimum rates would rise by 10 per cent.