Increases to standard burial fees at Carr Villa Memorial Park will continue until 2021/22 to help the cemetery return to financial viability and reduce the burden on ratepayers, the City of Launceston says.
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The price rises - which have seen single depth burial prices more than double in six years, and reach $3280 from July 1 - were planned in 2014 after a council review found the fees were "well below the market rate".
Carr Villa burial fees are lower than other larger Tasmanian cemeteries, but higher than those in Burnie and Devonport, and fees offered in other smaller councils.
City of Launceston general manager Michael Stretton said the goal was to "align" the fee structure with the costs associated with running the cemetery.
"For many years, Launceston ratepayers have subsidised fees associated with burial costs at Carr Villa, keeping fees artificially low, and at a level which did not recover associated costs," he said.
More on fee changes at Carr Villa:
"The council decided a staged fee increase would be necessary over several years to ensure costs were distributed fairly, to reduce any price shocks, and ultimately to reduce the burden on City of Launceston ratepayers.
"A fair pricing model for the costs associated with running a facility like Carr Villa Memorial Park allows us to undertake other works to care for and improve it into the future."
About 200 burials take place at the 50-hectare Carr Villa per year, and 300 cremations. The cost of cremations will decrease from $810 to $595 on July 1.
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More non-traditional burials like burials at sea and on private property were still uncommon given regulations surrounding them.
Philip Lethborg, of Lethborg Family Funerals, said cremation was the "most cost-effective" method and competition was strong in the area.
He said he understood the council's push to make Carr Villa "cost neutral", but it was likely to make people seek alternatives as it becomes increasingly unaffordable.
"I understand the council's predicament. We give our customers the options and are up-front with the costings," Mr Lethborg said.
"It's difficult for people who want to be buried at Carr Villa - especially if they have loved ones at Carr Villa - but then there's other ratepayers who don't want to be subsidising those who choose to be buried.
"They'll either go to other cemeteries or get cremated."
In 2015, Carr Villa operated at an annual deficit of $350,000, including $120,000 in capital funding per year.
A further $345,000 in capital works will occur at Carr Villa in 2019/20, including a new ash placement area and the refurbishment of the cremation plant.