About 30 headstones are thought to be in breach of the Longford Cemetery's height rules and may need to be amended.
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The height issue was discovered by the Northern Midlands Council during its day-early audit of the cemetery on Monday.
The council's policy, which was last amended in July 2017 and is due for review in 2021, states:
The maximum allowable dimensions for a headstone in a limited monumental lawn cemetery are 900mm wide, 400mm high and 150mm deep - no structures are to encroach on to the area that is maintained by council.
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"Council wish to negotiate with the stonemason that has installed the headstones and acted on behalf of families," the council's general manager Des Jennings said.
"Council may consider changing the policy slightly and will ensure that stonemasons abide by the policy in future."
The council is yet to make a decision on what to do moving forward with the headstones above 400mm.
Councillor Matthew Brooks said he was disappointed and embarrassed that headstones may have to be altered.
"To make the families reduce the height [would] be absolutely absurd," he said.
He said the headstone manufacturers should have known the rules.
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