What is the budget?

    The City of Hobart's budget outlines the services and initiatives it undertakes in a financial year (July 1 – June 30). The budget includes detailed information about the rates and charges to be levied, the capital works program, expected revenue, and where financial resources come from to operate programs and services.

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

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

    Why is the City asking me what I think about the budget?

    As the City prepares for its 2019–20 budget, it’s important we understand what services you value the most and where you think the City should focus its spending in the year to come.

    Where does the money come from?

    While most of the revenue for the budget comes from rates and charges, money also comes from fees and charges, operating grants, TasWater distributions, rents, and interest on investments.

    Rates and charges 62.9%

    Grants 2.4%

    TasWater Distributions 1.6%

    Rents 2.5%

    Interest 0.7%

    Fees and charges 29.9%

    Where do my rates go?

    The City spends about $98 million on the many services and programs the City delivers to the community. The operating budget is allocated as follows: 

    • Corporate Governance & Administration 15.1% 
    • Parks & Recreation 21.8% 
    • Economic Development, Tourism, Arts and Events 8.9% 
    • Community Development 5.7% 
    • City Planning 4.7%
    • Environmental Health and Animal Management 3.3% 
    • Roads, Footpaths, Stormwater and other infrastructure 17.1%
    • Parking 10.7%
    • Waste and Recycling 6.4% 
    • City Cleansing 2.9% 
    • Strategic Planning and Finance 3.4%
    The City spends about $38 million on its capital works program including the building of new facilities and renewal of assets. The proposed capital works program is allocated as follows:
    • Roads & Bridges 22.5%
    • Stormwater infrastructure 7.8%
    • Sporting Facilities 5 %
    • Parks & Bushland 7.2%
    • Solid Waste 1.1%
    • Buildings including renewals 5%
    • Doone Kennedy Hobart Aquatic Centre 14.6%
    • Public Toilets 2.9%
    • Placemaking and Retail Precincts 8.2%
    • Business & Information Management Systems 2.7%
    • Plant & Equipment 10.5%
    • Transport, Traffic & Car Parking 3.5%
    • Walking, Cycling & Public Transport Infrastructure 9%

    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 or replacement 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 the City and to fund services and programs such as maintaining our parks and playgrounds, maintaining roads and footpaths; rubbish and recycling collection; animal management and administering building and plumbing permits.

    What are the current budget challenges?

    As with household budgets, the City's budget can be affected by increases in electricity costs, postal rates, monetary policy and interest rates.  There are many competing interests that the City has to consider when allocating funding. 

    Who decides how the City spends ratepayers' money?

    Your feedback on which services you value most will be given to the Council when it considers the 2019–20 budget. Your feedback will also be taken into account in future long-term decisions such as the Capital City Strategic Plan 2015–25 and Long-Term Financial Management Plan 2020–40.

    The final 2019–20 budget will go to the Council for its consideration on 17 June 2019.