Supporting a raft of capital works projects and progressively increasing spending on existing assets are key features of the Council’s Proposed 2022-23 Budget.
Council tonight released the Proposed Budget, which prioritises strongly investing in community-focused initiatives and delivering a sustainable financial position.
After more than two years of running annual deficits to support a range of targeted COVID-19 recovery packages, the Council has unveiled a Proposed Budget that is back in the black.
The $0.1 million surplus has been achieved while meeting four-year budget commitments, introducing a long-term asset renewal plan, and continuing to deliver 130-plus services.
Council is proposing a $206.6 million capital works program in 2022-23, to encourage further private investment and to cater to the region’s continued population growth.
The program maintains all of the commitments outlined in the 2021-22 to 2024-25 Budget and aligns with the strategic directions contained in our four-year Our Community Plan.
It also provides further funding for sustainability-led initiatives, such as a $4m allocation to power the Northern Aquatic and Community Hub with renewable energy and $3.5m to complete the bulk fit out of LED street lighting with smart control technology.
In line with a new 10-year Asset Plan, a greater share of funding will be used to improve the condition of ageing assets across Greater Geelong.
A total of $45.6m has been allocated to renew existing assets in 2022-23, with that overall sum rising every year to $56.9m in the forecast 2025-26 budget.
Deputy Mayor Trent Sullivan said the Proposed Budget struck the right balance in catering to the growth of the region and ensuring assets were upgraded in established communities.
“Council has made a strategic decision to increase the amount of funds we use on revitalising older infrastructure across Greater Geelong.
“We have also honoured the commitments we unveiled last year, and added further projects that align with Council’s sustainability goals.”
Council has maintained an extensive array of funding opportunities through the $9 million Community Grants program.
Following the development of the Sustainability Framework, the Council is providing $100,000 for the Community Climate Change Action fund, which will help us become a zero emission, climate-ready region.
The next round of funding will be fast-tracked, with applications to open in June.
RATING & REVENUE PLAN
General rates are proposed to increase by an average of 1.75 per cent.
The figure is in line with the Victorian Government rates cap for councils, with the City continuing its record of meeting the cap every year.
Finance Portfolio Chair, Councillor Anthony Aitken, said Council was proud to have brought the budget back to a break-even position.
The last 2 years has seen Geelong council budget for significant annual deficits due to COVID-19. Such deficits are not sustainable, and we have worked hard to deliver a break-even budget for 2022-23. Continued deficits affect our borrowings, capital spend and ability to respond to community needs.
Delivering a break-even budget straight after COVID-19, and in a rate capping environment of 1.75 per cent, is a major financial achievement for Council, while maintaining significant commitments and meeting the demands the continued population growth is placing on us.
Through the Rating & Revenue Plan, Council proposes to set out its system of how rates are sourced from the community.
Under the plan, which has been shaped by community and business sector feedback, the Commercial and Industrial rate classes will be aligned, and their rate in the dollar brought closer to the residential rate over the next four years.
This means that in 2022-23:
- Residential rates will increase by an average of 4.54 per cent, rising by $60.66 to $1397 per year
- Commercial rates will decrease by an average of 7 per cent, falling by $387.74 to $5152 per annum; and
- Industrial rates will fall by an average of 9.7 per cent, falling by $514.14 to $4789.
The Rating and Revenue Plan we have developed is responding to the new Local Government Act and recent community feedback to try and make our rating system fairer and simpler. The proposed plan attempts to reduce the number of different rate types in Geelong, be an average rating council and provide some relief to local businesses to encourage new jobs.
PROPOSED ASSET SALES
To help ensure that the needs of the community are met in coming budgets and reduce debt levels, Council is seeking submissions on the potential sale of four surplus properties.
The land holdings are not in the Council’s long-term plans and are likely to attract interest, given they all host commercial activities.
The Council has raised $32 million in recent years by selling other surplus sites, such as the Old Geelong Gaol and the Old Geelong Post Office.
Having released its financial plans, Council is now seeking public feedback on the Proposed 2022-23 Budget, Rating and Revenue Plan and potential sale of assets.
Further information can be viewed here
Submissions are encouraged and will be received until Tuesday 24 May.
