The Neighbourhood Street Party Kit states that a $100 road closure fee will off-set council's costs of having a worker come to the street to set up road block signs and to remove them.

The kit also informs residents that they will have to pay a $220 fee for private liability insurance and extra fees if they wish to consume alcohol at their street party.

The $100 road closure fee will be included in the council's fees and charges and $5000 has be allocated in the council's 2014-15 budget to cover the subsidised fee of street closures.

The subsidised fee will only be given once per street.

Deputy Mayor Jeremy Ball and Alderman Danny Gibson agreed that the kit was a great idea to get people thinking about having street parties, which would allow residents to get to know one another and create a sense of community.

Alderman Robin McKendrick and Ted Sands were the only two alderman to vote against the new initiative at yesterday's council meeting.

Alderman McKendrick said the idea that people had to contact council and pay a cost to have a street party was over the top.

"I just think people in suburban Launceston should be able to do it," he said.