Launceston councillors have defended their decision to approve a 3.75 per cent rates rise, by saying that it is in line with the council's long-term financial strategy and is not as big an increase as in other municipal areas.
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During yesterday's City of Launceston council meeting, the proposed rates rise, along with a number of increased charges such as a new fee for FOGO collection, was passed unanimously by the council.
Councillor Alan Harris, who moved the motion, said in his introduction that the rise would help provide the council with the income it needs to deliver provision and services to the region.
"It's interesting to note that inflation is sitting at 5.8 per cent in Hobart, but we've been able to keep it down [to 3.75 per cent]," Cr Harris said.
That tone was kept by deputy mayor Danny Gibson, who said while Launceston did not like to compare itself to other councils, the rate rise was a lot lower than others were considering.
"While it is not realistic to compare ourselves to other councils it's important to note that others are looking at between 7 to 10 per cent rate increase," he said.
The Burnie City Council was discussing a 10 per cent rate increase, as it scrambled to balance its budget in the wake of increasing financial pressures. Other municipalities are looking in the vicinity of 4 per cent.
The council's report, tabled for the meeting noted that "despite the significant upward trend in the council's cost, the council has opted not to pass on all these increases in 2022-23".
A revision of the long-term financial plan is expected to address the rising cost issue with gradual rate increases along with level of service reviews over the next few years.
Councillor Krista Preece said in her first year as a councillor she'd seen first-hand just how much work goes into the budget and annual plan and wanted to reassure the community.
However, she said she wished Launceston's residents would engage with the council's operations, such as budgets and potential rates rises more, rather than using social media to air their grievances.
The annual budget includes a capital works program totalling $18 million and includes upgrades to the QVMAG's Phenomena Factory, $8.5 million for road, footpath and trail upgrades and $1.3 million for parks and playground upgrades.
Launceston's waste management charges will also increase by $22.20 for an 85 litre bin, $22.45 for a 140 litre bin, and $27.55 for a 240 litre bin. The previously free FOGO collection service, which costs the council about $780,000 a year will this year incur a $25 collection fee per household.
Cr Gibson said he understood that an "increase was an increase" despite the council attempting to keep the increase relatively low, in comparison with other areas.
However, he reiterated that the council did have hardship services and could work with people who were disadvantaged to help them pay their rates, through things like payment plans.
During the same council meeting, councillors approved the City of Launceston's annual plan, which was described by councillor Alan Harris as "how we will spend the money" recouped through the rates hike.
The annual plan sets out seven priority areas for Launceston for the next financial year and includes existing commitments such as the Tamar Estuary River Health Action Plan.
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