Launceston council expects budget to be in the red, but back in black soon

The City of Launceston council budget for the 2024-25 financial year has been finalised - but not yet endorsed - after public consultation, with rates set to rise by 4.5 per cent for the second year in a row.

This amounts to a $59.80 annual increase for the average ratepayer, however the actual result will vary by individual properties.

The most recent figures by the ABS show inflation over the 12 months to March 2024 was 3.1 per cent in Hobart.

However at the same point in the lead-up to the 2023-24 budget, which also included a 4.5 per cent rise, inflation was 6.9 per cent.

A total of $26.9 million has been set aside for capital works projects, with road resealing ($4.8 million), restoration work on the Alexandra Suspension Bridge ($1.4 million) and improvements to the city's parks and recreation spaces ($1.9 million) ranking among the big-ticket items.

There is also $40,000 set aside to scope the works required to refurbish the Lilydale Pool - something included after the community consultation.

The council also expects to pay down a $6 million debt by June 30, 2025 after spending $20 million on loan repayments in 2023-24.

If achieved, this will wipe the council's ledger clear and make the organisation debt free, however the budget will still be slightly short, with a $621,000 underlying deficit predicted.

This is about 0.4 per cent of the overall predicted revenue, and the council expects a surplus in the 2025-26 financial year.

Budget documents say the council aims to "strike a balance between providing quality services and managing the financial challenges posed by increasing costs" and reach financial sustainability through "gradual rate increases and conducting service reviews".

Waste management charges are set to remain the same, as the documents say an increase to disposal and collection costs are increasing but recycling processing costs have fallen by a similar amount.

Wages are also set to add to these increased costs, as the council has budgeted for salary increases as part of contract negotiations and more staff.

In a statement released ahead of deliberations on the budget, mayor Matthew Garwood said the council's financial plans were sensitive to the financial stresses experienced by many Launceston residents.

"We've worked the numbers really hard this year to shield our community where possible," Cr Garwood said.

"For example, we've been able to ensure there is no increase to the waste management component of people's rates this year, thanks to some savings we've made in other areas.

"We're trying to deliver a budget that is fair and community-minded, and allows our Council to continue to provide a very high standard of services and facilities to our community."

Cr Garwood said anybody experiencing financial stress should contact the council's customer service team to arrange hardship assistance or flexible payment plans.

The 2024-25 City of Launceston council budget and associated annual plan are set to be formally endorsed by councillors on Thursday, June 27.