What is the budget?

    The City of Hobart's budget outlines the services and initiatives that the City of Hobart undertakes in a financial year. The budget includes detailed information about the rates and charges to be levied, the capital works* program to be undertaken, expected revenue, where Council allocates its financial resources to operate the myriad of programs and services and other information for the financial year.

    The City of Hobart adopts a 12 month budget cycle in line with the financial year from 1 July to 30 June. In Accordance with the Local Government Act 1993, the Council must adopt an operating and capital budget each year by 31 August each year.

    The aim is to produce a balanced budget each year - where revenue generated is sufficient to cover expenditure.

    *  This community engagement process involves the Council's operating budget.

    Why is the Council engaging the community on the development of its budget?

    As Council starts to prepare for its 2016/17 Budget, its important we ask what services the community values the most.

    Why not play the budget challenge? It is a budget stimulator tool which allows you a say in how your rates are spent and how the operational budget is balanced.

    Where does the money come from?

    The City of Hobart's revenue is around $119 million.  While most of the revenue for the budget comes from rates and charges, Council also receives money through fees and charges, operating grants, TasWater distributions, rents and interest on investments. 

    Rates and charges = 62.8%

    Grants = 2.9%

    TasWater distribututions = 2.7%

    Rents = 2.8%

    Interest = 0.9%

    Fees and charges = 27.9%

    Where does my rates money go?

    Council spends around $117 million in operating expenditure each year.  Around $96.5 million is spent on the many services and programs the Council delivers to the community.  A portion of the total operating budget of $117 million also includes other costs for things like depreciation and the Tasmanian Government's Fire Service Levy.

    The $96.5 million to deliver services and programs is allocated as follows:

    Parks, Reserves and Recreations = 21.9%

    Community Development = 3.5%

    City Planning = 5.3%

    Economic Development, Tourism, Arts and Events = 7.9%

    Corporate Operations = 13.7%

    Strategic Planning and Finance = 5.5%

    Environmental Health and Animal Management = 1.9%

    Roads, Footpaths and Stormwater and other infrastructure = 19%

    Waste and Recycling = 8.4%

    City Cleansing = 3.6%

    Parking = 9.3%

    What is the difference between capital expenditure and operating expenditure?

    Capital expenditure* is an expense incurred for a future benefit. For example, capital expenditure may be the purchase of a building or equipment or the upgrade of existing facilities or major works to roads, so their value as an asset increases.

    Operating expenditures are those required for the day-to-day functioning of Council and to fund the provision of services and programs such as community programs; maintaining our parks and playgrounds, maintaining roads and footpaths; rubbish and recycling collection; animal management and administering building and plumbing permits.

    * This community engagement process involves the Council's operating budget.

    What are the current budget challenges?

    As with household budgets the Council's budget can be impacted by many external factors, for example increases in utility costs, postal rates, monetary policy and interest rates.

    Who decides how the budget is set and how the City spends ratepayers' money?

    Your feedback on what services are valued most and the results from the budget challenge will be included for consideration by the Council when it considers the 2016/17 Budget.  Your feedback will also be taken into account in future budget decisions in the context of the Council's Capital City Strategic Plan 2015-2025 and the Council's Long-Term Financial Management Plan 2016-2036.

    It is planned that the final 2016/17 budget will go to the Council for their consideration on 20 June 2016.