The final cost of Dorset Council's coronavirus assistance measures is unknown, but Mayor Greg Howard says he expects the pandemic to rip millions of dollars from council coffers.
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When the council met on Monday night, it approved a business and community support package which includes a temporary pause on rate rises and rate relief to eligible organisations. A raft of fees and charges will also be waived for food vendors, eligible developers and other groups.
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"It was adopted unanimously, albeit that there were only five councillors in the room, Councillor Howard said.
"Four councilors had to declare interests and leave the room because they've got businesses that potentially might benefit."
Cr Howard said the package's estimated $250,000 cost referred to in council business papers was a "stab in the dark".
"We really don't know [the total cost] because we don't know how many people are going to apply or meet the criteria," he said.
"We can afford to do it. In the last five years we've been making surpluses in between $1.5 million and $2 million."
In other news:
Despite the strong balance sheet, Cr Howard said the freeze in rate rises this year would hurt council's finances in the long term. He said even if the council started increasing rates in-line with the consume price index (CPI) again from next year, the council would still be behind financially.
"Because you're putting them [rates] up on a lower basis, because there was no increase this year and that continues to count over the 10 years - that'll make a difference of about $3 million to us over a 10 year period," Cr Howard said.
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Ryan Young
Journalist at The Examiner in Launceston via the Daily Liberal at Dubbo.
Journalist at The Examiner in Launceston via the Daily Liberal at Dubbo.
