Brighton confirms rates holds to CPI for 22nd year, but commitment under threat from State Government’s TasWater grab

BRIGHTON Council has confirmed that its general rate increase for the next financial year will be pegged to the rise in the CPI, marking the 22nd year in succession that it has kept rate rises at or below the rate of inflation.

However, Mayor Tony Foster says Brighton’s fair rating policy that provides ratepayers with the lowest council charges in Tasmania, is under threat from the State Government’s proposed unprecedented takeover of the local government owned TasWater.

Brighton’s 2017/2018 budget and rates determination was approved by Council last night and residential household rates will rise by just $19 or less than 37 cents a week, next year.

Mayor Foster said because of Brighton Council’s operational efficiency and its fair rating regime, it had been able to maintain its policy of keeping general rate increases at or below the increase in the Hobart Consumer Price Index which, for the past year, was 2.3 percent.

“Our flat rating regime for residential properties ensures fairness and the Auditor-General has confirmed that Brighton continues to have the lowest per capita rates in Tasmania.

“But this is at risk because of the State Government’s threat to take over TasWater. As well, under the Government’s plan an additional debt of $3000 will be imposed on every Tasmanian household to slightly speed up TasWater’s capital program and this will surely result in higher water and sewerage charges in the medium to longer term.

“This has serious implications for Brighton ratepayers, many of whom are already struggling under rising cost of living pressures.

“The proposed borrowings will significantly impact on TasWater’s long-term profitability which is why the State Government is unable to commit to the original dividend plan put forward by TasWater.

“Brighton Council’s share of TasWater is valued at more than $46 million, paid for by Brighton ratepayers. The State Government plans to take this asset without any upfront compensation and return significantly less to the Council in the long term.

“Obviously, this will impact on our future budgets and rate determinations. Council would have to increase rates simply to maintain the same level of services and it would prohibit any increase in services in the future,” Cr Foster said.

As part of next year’s budget, Brighton Council also approved the development of key projects for the coming year including a new community park for Old Beach, stage 1 of the Bridgewater master plan, stage 1 of the Gagebrook / Herdsmans Cove improvement works and the development of the Polonia Bridge park in Brighton.

Cr Foster said in stark contrast to the attack on local government by State Treasurer Peter Gutwein in his grab for TasWater, the Federal Government was supporting the replacement of the Covehill Bridge and a complete redevelopment of the Brighton Bowls and Community Club building. Both projects should be finalised in the new financial year.

“The efficiency of our operations and strong financial management, coupled with our commitment to shared services with other like-minded Councils means that Brighton ratepayers continue to benefit from the full range of services at the lowest possible cost.

“That this should be threatened by the unprecedented actions of the State Government through its highly questionable and potentially illegal grab for TasWater, is nothing short of shameful,” Cr Foster said.
Brighton Mayor Tony Foster