Launceston residents to pay around $2 more a week in rates

While Launceston’s mayor called out ‘council antics’ during a seven-hour long meeting, the budget did pass. What is in it for Launceston residents.

Launceston Mayor Matthew Garwood calls out councillors during budget debate. Picture: Stephanie Dalton

While the Launceston council passed the yearly budget on Thursday, after another long meeting, the rate increase will not be as hefty as once proposed.

The rate increase, which was in the first draft 6.7m, dropped to 5.7 in the official budget.

The feedback from the community over cost-of-living increases was a factor in the council lowering the rate jump.

The increase is still higher than the last financial year’s increase which was 4.5 per cent.

The bottom line average increase will be 5.2 per cent, around $2 a week for those living in the largest municipality in Tasmania.

This means the council will not have a “break even budget” but a deficit budget.

Out of the $150 million budget, more than $34 million will go to capital works.

The two largest projects are $6.4 million for Princess Theatre and Earl Arts Centre upgrades and QVMAG Futures Plan and $5.5 million for Launceston City Heart Place Plan and CBD improvements.

Princess Theatre render. Launceston Princess Theatre and Earl Arts Centre $30m refurbishment. Picture: Development Application

One of the major increases and highest costs for council is staff costs, which had a 5 per cent increase.

Councillor Susie Cai, with words from absent Tim Walker, argued for a 4.9 per cent increase in order to keep “financial pain to a minimum.”

It was argued council would be able to recover a higher deficit, however, this move for a lower rate increase failed to be supported by other councillors, only supported by councillors Joe Pentridge and Susie Cai.

This sparked annoyance from Mayor Matthew Garwood, stating it had been a “tough day”.

“We had three weeks with this meeting coming forward, to be dealing from an email from someone who’s not here is incredibly disrespectful to the staff … the to table … and to the community,” he said.

Mr Garwood said a community member had said the councils antics were a waste of time.
“This is frustrating,” he said.

Launceston Mayor Matthew Garwood. The Mercury Bush Summit in Launceston. Picture: Rob Burnett

“I feel like today has been really embarrassing.”

Mr Garwood said the budget had been in the works for months and there had been other times where proposals could be put forth and staff given adequate time to work on councillors feedback.

“We talk about efficiencies and we’re sitting here quietly with nothing to do while we put our officers through the ringer to make changes in works they’ve spent week on,” he said.

Mr Garwood told councillors to reflect as they “waited for a moment.”

Deputy mayor Hugh McKenzie said council had a better 2025, so the community could get a flow on effect from that.

City of Launceston Deputy Mayor Hugh McKenzie. Picture: Facebook/ Hugh McKenzie Councillor Launceston City Council

“My sense was let’s give ourselves a challenge and let’s reduce the amount we are going to charge from 6.7 to 5.7, run a deficit budget which according to the books is about $700,000,” he said.

“When then put onus on management so somewhere along the line we reduce that $700,000 closer to zero through efficiencies and things we can do during the year.”

There were three absent councillors, Alex Britton, Tim Walker and Lindi McMahon.

Originally published as Launceston residents to pay around $2 more a week in rates