About $1.3 million in redundancies has been paid out by the City of Launceston council as part of its restructure.
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The Organisational Alignment Project was announced earlier this year in the first restructure since 1985.
Under the review, 56 new roles were created, 40 positions were made redundant and 22 redundancies resulted in internal redeployment.
General manager Michael Stretton said there would initially be a higher cost directly attributable to the restructure.
"However, this cost is expected to be balanced out by an underspend in labour costs in the 2019/20 financial year," he said.
"Ongoing employee costs will increase by approximately $900,000 due to an increase in FTEs in key areas, but the trade-off will be an improvement in services to the community."
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With the reform, the OAP will deliver recurrent savings of between $2.4 and $5.2million a year to the council, including the additional employee costs, Mr Stretton said.
"The City of Launceston will still be a lean organisation in terms of staffing costs," he said.
"Under the new structure, the council's employee costs will account for 37.7 per cent of total operational expenditure which compares favourably with other councils."
Under the reform, the council is also looking at how to transition the Queen Victoria Museum and Art Gallery and UTAS Stadium to a more contemporary and appropriate governance model.
The council will move away from directorates and departments to become three network teams. This will see Mr Stretton's title change to chief executive, with three general managers leading the teams.
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