Amalgamation talk begins again as coronavirus hits Tasmanian council coffers hard - ABC News

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Amalgamation talk begins again as coronavirus hits council coffers hard

But not all councils could afford this or agreed with the rates freeze, with some mayors saying they felt forced into doing so."To all councils [the freeze] is probably a big issue, a big burden. To us, it's just off the planet," Mayor Annie Revie said.

On paper, councils are asset-rich — they own parks, roads and buildings — but few of them can be sold or, as Derwent Valley Mayor Ben Shaw put it, "you can't sell a footpath". "We're around about the $1 million mark [in leave entitlements] on our books, which is a real concern. We need to have that cash available plus we need to have operation cash as well," he said."If it all comes in and all our rates come in, we'll be fine," he said.

Hobart City Council has estimated that by the end of the financial year it will be down $10 million in revenue and next financial year, the worst case scenario will see it down $22 million.

 

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