City of Launceston's proposed 2019/20 budget

Published on 21 March 2019

A capital works programme totalling more than $22 million headlines the City of Launceston's proposed 2019/20 budget.

City of Launceston Mayor Albert van Zetten said Councillors agreed to send the proposed budget out to the public for a four-week consultation period.

Capital projects proposed in the budget include $5.2 million in road upgrades (including $1.5 million for an upgrade at the Invermay-Lindsay Street intersection), $1 million for parks and playground upgrades, $250,000 for stage one of the QVMAG collection audit and digitisation, $2.8 million for the resurfacing of University of Tasmania Stadium, $1.5 million for upgrades to Churchill Park and $250,000 for an upgrade of the parenting room at the Paterson Street West car park.

Mayor van Zetten said the proposed general rate increase of 2.8 per cent was well under local government CPI of 3.3% and the same increase as the 2018/19 financial year. 

The Council is in a good financial position and is budgeting for a comprehensive surplus of $662,000 in 2019/20. However, this belies the fact that the Council is budgeting for a $1.3 million operating deficit in 2019/20.

"While it's never ideal to have an operating deficit, the reality is that Council has had a number of operational challenges in the past two years,," Mayor van Zetten said.

"These challenges include a $1.36 million reduction in the TasWater dividend and combined stormwater/sewer costs together with increasing service costs.  It's important to remember that as a Council, we're not spending more money than we receive in 2019/20.

"As a local government authority, it's important that we always seek to balance the competing needs of maintaining facilities and services, while supporting important residential growth, economic development and social inclusion programmes".

"That's the role of any Council. There's an expectation out there in the public sphere that the Council plays a significant role in addressing any and all challenges as they present themselves, and realises the potential benefits that these opportunities present.

"As the largest local government in Tasmania, we're a really diverse organisation. We run a world-class sporting stadium, we operate a museum and art gallery and a world-class aquatic centre. We own and manage more than 260 parks, reserves and conservation areas; maintain more than 740 kilometres of road and 88 bridges.

"No other council in this state has such a diverse range of regional facilities under its management and the reality is, these facilities provide a service for the entire Northern community of some 110,000 people, not just the City of Launceston's 67,000 residents. From my perspective, I would like to see more acknowledgement of the cost of regional service provision by the City of Launceston from the State Government. In particular I'd like to see a focus on the State grants system but also on local government reform."

Mayor van Zetten said the Council forecast a number of future challenges over the next 12 months, including the increase in waste fees and kerbside collection costs due to significant cost increases associated with changes in the way the recycling market now operates. The market is driving a focus on reducing contamination levels in kerbside recycling and a need for us to look locally for a market for recyclable material Mayor van Zetten said.

Whilst Council has been able to maintain a general rate increase at less than CPI ratepayers will note a higher increase related to waste charges due to these global market influences.  A 140 litre bin in 2018/2019 cost $105 and in 2019/2020 will cost approximately $148. 

The median general residential rate in the Launceston municipality for 2019/2020 would be $1225 - that excludes the Fire Service Levy and Waste Charge.

Mayor van Zetten said the rate increase for the general rate was kept as low as possible - which in real terms is a rise of $33 for the average residential ratepayer plus the increase in waste charge.

"I encourage all ratepayers to read over the budget proposal and make a submission to our engagement process. It's important that, as a Council, we understand what matters to the community," Mayor van Zetten said.

Submissions on the proposed budget can be made in writing until 5pm on Thursday 18 April 2019 by email to: ProposedBudget2020@launceston.tas.gov.au  or in writing addressed to the General Manager, City of Launceston, PO Box 396 Launceston, 7250.

Download the proposed 2019/20 Budget Overview here.(PDF, 147KB)