Media release – City of Hobart, 21 June 2021
Budget supports long-term sustainability
Llng-term sustainability is the focus of the 2021-22 City of Hobart budget, which was adopted this evening.
Lord Mayor Anna Reynolds described 2021-22 as a ‘transition year’ for the City, as it moved out of the pandemic response phase and into the long-term recovery.
“This time last year, we were taking quite drastic measures to deal with the immediate impacts of the pandemic,” she said. “We now need to enter into a long-term strategy to rebuild our services and financial sustainability – and that will take some time.
“Significant cost-savings have been achieved across the organisation, which means we can continue to provide the services that our community expects without big increases to rates.
“The result is a budget that provides stability for our community and confidence in the long-term outlook.”
Following a deficit budget in 2020-21, the City has forecast a moderate surplus of $1.49 million for the coming financial year.
Finance and Governance Committee Chair Marti Zucco moved the adoption of the budget at tonight’s Council meeting.
“Considering the situation, this is a very responsible budget by the Council that will deliver a small but much-needed surplus,” Ald Zucco said.
“The Council has also been lucky that the fruits of growth and development have assisted in the bottom line.”
More than half of the $42.9 million capital works program comprises renewal projects. However, $8.4 million in grant funding from other levels of government has helped to deliver new infrastructure such as the new cycle lanes on Argyle and Campbell streets, new public toilets and amenities at Tolmans Hill and Long Beach, and redevelopment of the Swan Street Park.
“We’ll continue to apply for grant funding as a way to get more of our shovel-ready projects under way,” Cr Reynolds said.
Significant development activity in Hobart during the past year produced growth in the city’s rates base by 1.12 per cent, subsequently allowing the City to lock in a modest average rates increase of 2.73 per cent, or approximately $70 a year.
The majority of residential ratepayers will receive an increase of between 2.63 per cent and 2.81 per cent, depending on their individual property value.
Waste management, FOGO and landfill rehabilitation services charges have been frozen for 2021-22. However, the state government-imposed Fire Protection levy will increase by $32.33.
“With this budget, we’ve been able to maintain investment in the health and wellbeing of our community through providing parks, bushland and sporting facilities to the tune of $18 million – or around $330 per Hobart resident,” Cr Reynolds said.
“We’re also spending in excess of $18 million on roads and active travel infrastructure and we’re continuing to invest in the safety of our community with $1.5 million allocated to bushfire management and fire trail maintenance.”
Renewal focus in capital program
More than half of the City of Hobart’s $42.9 million capital works program in 2021-22 is allocated to infrastructure renewal, but grant funding has provided opportunities to invest in several new projects.
“We’re concentrated on maintaining and upgrading what we already have to make sure it meets the expectations of our community,” Cr Reynolds said. “But $8.4 million in grant funding has enabled us to bring forward for a number of projects that deliver new infrastructure.
This includes the new cycle lanes on Argyle and Campbell streets, new amenities at Tolmans Hill and Long Beach, redevelopment of the Swan Street Park in North Hobart, and a suite of pedestrian safety improvements.”
About $18 million will be spent on roads and footpaths, including reconstruction of Giblin Street at Lenah Valley ($1.6m) and Proctors Road in Dynnyrne ($1m).
Nearly $2.7 million is invested in cycling infrastructure, including the federal grant-funded Intercity Cycleway extension and the Bridge of Remembrance cycleway underpass.
Users of Clare Street Oval at New Town will benefit from the addition of new amenities building that will feature new changerooms and public toilets. The $1.1 million project is jointly funded by a state government grant and the City of Hobart.
The final stage of the Salamanca Place pedestrian upgrade is also scheduled to be completed in the coming financial year.
“Keeping our capital works program moving is important for the local economy and is vital in making sure our community and visitors have access to safe and enjoyable assets and infrastructure,” Cr Reynolds said.
“We’ll continue to apply for grant funding as a way to get more of our shovel-ready projects under way.”
Capital works program highlights
- Total spend $42.9m
- Roads & footpaths $17.9m
- Bushland & parks $4.2m
- Stormwater $3m
- Public toilets $1.8m
- Argyle/Campbell streets cycle lanes $1.7m
- Clare St Oval amenities $1.1m
- Swan St park redevelopment $551,000
- City to Gardens Way $440,000
- Bridge of Remembrance cycle underpass $250,000
News from tonight’s Council meeting
Annual Plan endorsed
The Hobart City Council has endorsed the organisation’s Annual Plan for 2021-22, featuring more than 100 actions across all operational areas.
The Annual Plan aligns strongly with the Capital City Strategic Plan 2019-29 and the principles of the Community vision.
Key priorities for 2021-22 include the design and installation of the first stage of the Elizabeth Street – Midtown Retail Precinct upgrade, completion of parking and cycling improvements at the Regatta Grounds; improvements to the North Hobart retail and entertainment precinct based on community and stakeholder input; celebration of the 40th year of the Christmas Pageant and 50th year of Salamanca Market; and the successful transition of the Taste of Tasmania into a new ownership model.
New amenities for Tolmans Hill park
Two new barbecue shelters and a toilet block will be installed at the Tolmans Hill Playground on Old Proctors Road.
The project includes picnic tables and seating, and two barbecues, along with a pathway and access ramps. Four toilets, including an accessible toilet, will also be constructed. An accessible car space will be included in the existing carpark.
The project is funded through the federal government’s Local Roads and Community Infrastructure Program.
Support for housing options
The City of Hobart will investigate ways to provide advice to property owners around construction of additional homes on larger residential properties to increase housing options.
The City will identify suitable properties where the number of homes could be increased under current planning requirements.
In moving the motion, Deputy Lord Mayor Helen Burnet said there was an opportunity to increase housing density in some areas without sub-dividing land.
“The current housing shortage provides Council with good reason to be proactive in finding more solutions, by both pointing out what is possible, and where the planning schemes limit such options,” Cr Burnet said.
“Some properties, depending on their zone may lend themselves to having greater numbers of dwellings on the site. This could be floors or sections of a free-standing house that may be strata titled, or could have other freestanding dwellings such as granny flats built on the property.”
Residential developments approved
Two city developments proposing a combined 65 new residential units have been approved by Council.
A 45-unit development is proposed for Macquarie St includes a new eight-storey building comprising two basement levels with parking, a lower ground level and five levels above ground, with a maximum height of 20.7m.
A separate development on Argyle Street proposes a six-story building measuring 19.6m in height and featuring 20 residential units and car parking.
In approving the development, the Council added a condition that would increase the size of balconies adjoining the units.
Monthly building and planning statistics
During the month of May, 55 building permits were issued for projects with a combined estimated value of more than $19 million.
This included 10 new dwellings and a major internal refurbishment at 85-99 Collins Street worth nearly $8.5 million. In the 12 months ending May 2021, a total 686 building permits were issued to the value of $215 million.
Also during May, 90 new planning approvals were granted, with a total value of more than $14 million, contributing to a 12-month total of 836 planning approvals worth $322 million.
More trees for Mount Stuart
Suitable species and locations for street trees will be investigated for Rupert Street, Mount Stuart, in response to a petition from residents.
Any impact on traffic safety and parking will be considered in determining the number and location of any new plantings.
