North East Advertiser Editorial | 2023/24 Rates

Dorset Council has been deliberating on increasing the general rate in line with the Consumer Price Index (CPI) for the 2023/24 financial year.

Council's cost base is primarily focused on infrastructure, such as roads, bridges, footpaths, stormwater, community facilities and buildings. Over the past two years, these infrastructure costs have increased at almost double that of Hobart CPI. In the March 2023 quarter, Hobart CPI increased by 6.9%, and in the March 2022 quarter it increased by 5.8%, from the corresponding comparative quarters. Dorset's isolation has also impacted cost increases, with freight costs, materials and waste collection services increasing as a result of petrol price hikes.

Dorset municipality has approximately 100 metres of road to maintain for every resident, compared to 10 metres for every City of Launceston resident. This means that a smaller regional Council like Dorset is feeling the pinch more than larger councils as road costs have also been almost double the Hobart CPI over the last two years.

Council has maintained very low rate increases for the previous decade. However, in order to maintain the current service levels, the general rate has been proposed to increase by the Hobart CPI of 6.9%. Additionally, in draft budget estimate workshop discussions, Councillors have deferred up to 20 capital items into future years, despite this proposed increase.

This increase would amount to an increase of $1.36 per week to an average residential household. Despite this proposed increase an average household would still be significantly cheaper than surrounding Councils.

Council understands such an increase is challenging, and may put pressure on some ratepayers. However, the current cost increases that Council is incurring cannot continue to be absorbed whilst maintaining current service levels.