A decision to revoke an exemption to Fire Service Rates for retirement homes was deferred at the Launceston City Council meeting on Monday.
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The agenda item, prepared by corporate services director Michael Tidey, stated that independent living units within retirement homes that are currently provided with a rate remission do not come under statutory exemptions.
Two members of the public spoke against the application of the rates, which would result in approximately $100,000 raised for the 2016/2017 financial year, to offset the amount recovered by other ratepayers.
Their biggest concern was the lack of community consultation, given the changes would come into effect from July 1.
Alderman Robin McKendrick agreed, asking if any contact had been made with retirement homes which could be affected.
“In many instances, whether it be road works or other things in the community, we do go out and consult,” he said.
“When do the managers of the retirement homes do their budgets and what opportunity do they have to adjust those fees.”
Alderman Janie Finlay said the current exemption meant others in the municipality were paying a higher rate.
“As the council we work to make sure that the way we rate the council is fair and equitable,” she said.
“I know that across the state, other councils apply [the Fire Service Rates] in this way, meaning some of the retirement property owners are already paying it.”
The agenda item states that 10 other councils were contacted and the proposal is the same way they apply the rate to retirement homes.
“I’m not necessarily convinced that we are going about it in the right way… so that we are being equitable and fair,” said Alderman Hugh McKenzie.
He said further consultation would be needed and asked that the motion be deferred.
The Fire Service Rate is a state government levy, administered by the councils, and Ald McKendrick asked why the council is a collector for the state government.
“What the people look at is the total of the rates, most people don’t look at the line items individually and all they are seeing is the large number,” he said.
Mr Tidey said for a $250,000 property, the cost of the levy to each ratepayer is $170 before pension remissions.