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- In short: Huon Valley Council in Tasmania's far south has voted to increase rates 12 per cent next financial year because it is nearly $3m in deficit
- What's next?: The council is considering asking ratepayers to select which services they'd like to cut, to reduce their bill in future
A southern Tasmanian council has agreed to hike rates by 12 per cent for the next financial year after falling almost $3 million into deficit — but residents will have the chance to tell councillors which services they'd like to see cut.
Huon Valley Council voted at Wednesday night's meeting to adopt the rise, which will reduce to 8 per cent in 2024-25, and then 6 per cent the year after, when the council expects to return to surplus.
It sparked a debate in regional communities in Tasmania's far south about the financial sustainability of their local council and whether the rates were value for money. The increase was described as "$4 a week".
Councillors rejected an attempt to spread the rate rises evenly and charge 8 per cent a year over three years.
Huon's rates have been consistently lower than most others, sitting at 25th out of Tasmania's 29 councils and 15 per cent lower than similar regional councils.
Councillor Mark Jessop said this had resulted in the current financial challenge.
"There's no doubt that we're partly in this position because of the actions of people in the past," he said.
"I think we're up to five out of the last six years of deficit.
"We're robbing the future."
Just before the final vote, mayor Sally Doyle read out the full list of services the council was responsible for, claiming it was a larger impost than most other councils.
Councillor Paul Gibson requested that a suggestion box be provided for residents to list services they would like to see cut, to help ease the cost burden on council.
He described it as an "informal" measure.
Councillor Jenny Cambers-Smith agreed it was reasonable to ask the community's opinion on council priorities.
"It would be very worthwhile, just at some point, saying to community – well this is what we do, and this is the impact on rates, what would you prepared to shed if you had to?" she said.
"If you had to reduce your rates by 1 or 2 per cent, these are your choices.
"I don't think we've really put that question that starkly, and maybe we should."
The council will review its costs over the coming six months.
Services cut to save cash
Huon's decision came a few days after Clarence City Council chose a 6.5 per cent rate rise, below the consumer price index.