![The Break O'Day Council office in St Helens. Picture by Phillip Biggs The Break O'Day Council office in St Helens. Picture by Phillip Biggs](/images/transform/v1/crop/frm/204692884/7636e26f-c9f2-44db-b741-9e1e3c492046.jpg/r0_0_5568_3712_w1200_h678_fmax.jpg)
A Northern Tasmanian council has adopted its budget estimates for the next financial year, increasing general rates by 3.5 per cent.
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Break O'Day councillors unanimously passed the new charges during their last meeting on June 24.
It will bring in an additional $1,464,679 worth of trading income for the council in 2025 according to its budget forecast.
But general manager John Brown said this hike was necessary for the local government's continued operation.
"Over the last four or five years, council has done everything we can to address the cost pressures which have been evident within the sector," he said.
"We've pushed it down the road as far as we can and it's now gotten to the stage where things bite."
Mr Brown said Break O'Day was faced with either raising fees or cutting services.
Despite taking the former approach, the new budget will leave the council at a deficit of roughly $10,000.
![Break O'Day Council general manager John Brown. Picture by Scott Gelston Break O'Day Council general manager John Brown. Picture by Scott Gelston](/images/transform/v1/crop/frm/204692884/1b84c040-d01b-4c76-8ca2-607a8e347116.jpg/r0_0_6016_4011_w1200_h678_fmax.jpg)
"But at the end of the day, that is pretty close to what you would expect from a balanced budget situation," Mr Brown said.
"$10,000 in the context of a $20 million budget is pretty marginal."
The 2024-25 capital works budget is estimated to cost $6,890,898, more than $5 million of which is allocated to new items.
They include $80,000 for public toilets and additions at the Scamander Sports Complex and $60,000 to replace barbecue facilities at Binalong Bay's village green.
$160,000 has been set aside for footpath works while road resealing projects will cost half a million.
![The council's 3.5 per cent rate increase is among the lowest in the region. Picture by Tarlia Jordan The council's 3.5 per cent rate increase is among the lowest in the region. Picture by Tarlia Jordan](/images/transform/v1/crop/frm/204692884/a0921657-f7ee-439f-a321-bac5272fdb14.JPG/r0_239_3264_2313_w1200_h678_fmax.jpg)
Break O'Day councillor Barry LeFevre said it would be every councillor's dream to have no rate increase.
"But given the economic climate, I think 3.5 per cent is very fair and that will enable us to be a viable organisation once again and continue to do appropriate works," he said.
Mayor Mick Tucker agreed, adding that the council only raised the funds it needed while trying to be as equitable as possible.
"There's one thing as mayor that I'm always very mindful of, and that is our ratepayers," he said.
"Considering our community's capacity to pay is a major deciding factor when we set the rates each year.
"We do what we can to keep rates down but we still have services that must be delivered and rates are our main funding source to deliver these."
![Break O'Day mayor Mick Tucker. Picture by Phillip Biggs Break O'Day mayor Mick Tucker. Picture by Phillip Biggs](/images/transform/v1/crop/frm/204692884/bd4a48b0-e947-4eef-a322-b04d1fd48e57.jpg/r0_0_5568_3712_w1200_h678_fmax.jpg)
The 3.5 per cent hike is relatively small when compared to Launceston's 4.5 per cent, George Town's 5.5 per cent, Dorset's 5.7 per cent and West Tamar's 6.7 per cent.
Cr Tucker said it was important to remember that the increase was caused in part by state and federal government influence.
The fire levy, which is collated for the state government and passed on to councils in full, has risen by five per cent this year.
Waste charges have also gone up by five per cent as the state government increases costs of disposal.
"While there is often an expectation from the community that council should absorb extra costs, this only means we are kicking our problems down the road," he said.
"It also impacts the community in the long run as we are not able to fulfill their service needs."