Glenorchy City Council is taking action to ensure it has adequate revenue to repair and replace essential infrastructure. In March, Council agreed to a new long term financial plan. Glenorchy Mayor, Alderman Adriana Taylor, said the plan aims to ensure assets are maintained to appropriate standards and that Council’s debt is reduced with a minimum impact on residents.
“The new policy will put Glenorchy at the forefront in terms of the maintenance and replacement of the City’s assets,” she said. “The repair and replacement of assets like roads, water and sewerage systems is a big issue for all Councils.
“At the moment, the Local Government Association of Tasmania and the Australian Local Government Association are demanding a more equitable share of Federal and State revenue to meet residents’ demands for better quality services. In the meantime we have to take action ourselves.”
Alderman Taylor said Council has known for some time that more needed to be done to meet the depreciation of its assets, but only learned the extent of the task following a major asset management study last year.
“We have had financial strategies in place for some years to manage debt and the depreciation of our assets, pending the outcome of the last year’s study,” she said. “However, as a result of a revaluation undertaken as part of the study, the value of the assets maintained by Council has been increased by $160 million. That means we have to set aside more money to provide for their replacement.”
She said the funds required to meet the objectives of the financial strategy will come from cost saving, increases in some user service charges and some rate increases.
“Our aim is to share the burden broadly and limit rates increases on residents, but it will not be possible to avoid any increase in rates,” she said.
For further information contact Manager Corporate Services, Sue Buckland, on (03) 6216 6753.
