King Islanders slugged with council rate rise

King Island ratepayers are facing a proposed 7.5 per cent increase in rates, waste charges and most council fees under the draft 2026-27 budget to be considered by councillors on Tuesday night.

The proposed Annual Plan, Budget Estimates and Fees and Charges Schedule have been developed over recent months and outline Council's plans for the coming financial year, including a $2.9 million capital works program and a continued focus on maintaining infrastructure and core services.

Under the proposal, general rates would increase by 7.5 per cent, with the minimum rate rising from $370 to $400. Domestic waste charges would also increase by 7.5 per cent, while the State Government landfill levy component would increase by 10.8 per cent.

The waste management service charge for non-commercial properties would increase from $497.50 to $534.80, while the landfill levy charge would rise from $41.50 to $46.00.

Council estimates the changes would increase total rates and charges revenue from approximately $3.32 million this financial year to about $3.62 million in 2026-27.

The budget report states the increases are required to help Council meet rising operational and infrastructure costs while maintaining services and facilities across the municipality.

General Manager Bryan Nicholson said the budget had been prepared with a strong focus on delivering essential council services while responding to increasing financial pressures.

The report notes that no general CPI increases have been applied to expenses unless required through contracts, industrial agreements or legislative obligations. Instead, Council has sought to reduce costs where possible while continuing to meet its responsibilities.

A key priority identified in the budget is maintaining and renewing ageing infrastructure. Council's Long Term Financial Management Plan estimates it is responsible for approximately $100 million worth of community assets, including roads, drainage, buildings, sporting facilities, public amenities and other infrastructure.

The plan notes that ideally around $2.4 million would be invested annually in asset renewal, however current funding levels allow for less than $2 million per year, creating ongoing pressure as infrastructure ages and maintenance costs increase.

The proposed budget includes a capital works program worth $2.914 million. Major items include continued investment in local roads, footpaths, community facilities and plant replacement.

Among the most significant projects is a proposed $1.37 million investment in crushed rock supplies to secure multiple years of road construction and maintenance materials. A further $290,000 has been allocated for quarry rehabilitation works.

The budget papers indicate Council will continue to rely heavily on external grants to fund major infrastructure projects while seeking to improve its operating cash position to support future capital investment.

Council's long-term financial planning also identifies several major challenges, including increasing road maintenance costs, waste management expenses, airport operations, ageing infrastructure and the need to fund asset replacement over coming decades.

Most fees and charges are also proposed to increase by around 7.5 per cent. Examples include increases to Town Hall hire charges, planning fees, cemetery fees and a range of community facility charges. The Town Hall cleaning bond would increase from $162 to $200, while the alcohol bond would increase from $378 to $405.

Mayor Marcus Blackie and Mr Nicholson state in the Annual Plan that Council's objective is to balance affordability with the need to maintain essential services, invest in infrastructure and ensure long-term financial sustainability.

Councillors are expected to consider the proposed Annual Plan, Budget Estimates, Rates and Charges and Long Term Financial Management Plan at Tuesday night's ordinary meeting.