Council endorses budget following community feedback

The Greater Geelong Council has endorsed a final 2024-25 to 2027-28 Budget, featuring a number of changes made in response to community feedback.

The budget will see the Council deliver facilities and services to meet the community’s needs, while remaining financially sustainable in a difficult economic environment.

Reflecting the strength of the community’s submissions on the draft budget, the Council’s capital projects program has been updated to include $650,000 for a netball facilities upgrade at Richmond Reserve, home of East Geelong Football Netball Club.

In addition, an extra $1.5 million has been included for a female friendly change facilities upgrade at Hamlyn Park, home of the Bell Park Dragons.

The increase takes the total allocation for the project to $1.7 million, ensuring it will go ahead regardless of the outcome of Council’s application for $1.5 million through the Australian Government's 2024-25 Play Our Way program.

The following extra funding has been added to the Council’s operational budget:

• North Bellarine Aquatic Centre – $423,000 in extra operating costs to keep the pool open during Winter, in line with a decision made by the Council last month;
• Geelong Gallery – additional $30,000, taking total increase on 2023-24 funding to $65,000 (total funding is $1,365,339);
• Neighbourhood Houses - $50,000
• Barwon Sports Academy – $3,000 to cover an increase in the organisation’s lease costs;
• Active Geelong - $50,000 for a 12-month membership.

As a result of these changes, the final budget forecasts an operating surplus of $1.514 million, down from $2.07 million in the draft budget.

Mayor Trent Sullivan:

Thank-you to the community for your valuable input on our draft budget.

The Council considered all of the feedback carefully and despite a very tight operating environment, we’re happy we’ve been able to meet a number of the community’s requests.

On the flipside, we know there will be disappointment that funding hasn’t been found for particular projects – unfortunately when putting together a large budget such as ours, it is impossible to fit everything in.

On the whole, this is a well-balanced and responsible budget that will deliver an exciting list of projects, services and facilities for the community right across our region.

Discussions on this budget began last year and there have been multiple meetings, community engagement sessions and opportunities for the community to provide feedback, which the Council has heard and taken on board.

It has culminated in a budget that has been designed to deliver an array of infrastructure projects and more than 120 services to the community.

BUDGET SNAPSHOT – KEY FACTS AND FIGURES

Community feedback

The proposed budget was open for community feedback between 24 April and 22 May 2024, generating 345 submissions on a range of topics.

A budget submissions panel hearing took place on Monday 3 June for those wishing to present their feedback in person.

All feedback was considered prior to the endorsement of the final budget.

Changes in response to feedback

Additions to capital works budget:

• $650,000 for a netball facilities upgrade at Richmond Reserve, home of East Geelong Football Netball Club;
• Extra $1.5 million for female change facilities upgrade at Hamlyn Park, home of the Bell Park Dragons, taking total allocation for the project to $1.7 million.

Additions to operating budget:

• North Bellarine Aquatic Centre – $423,000 in extra operating costs to keep the pool open during Winter, in line with a decision made by the Council last month;
• Geelong Gallery – additional $30,000, taking total increase on 2023-24 funding to $65,000;
• Neighbourhood Houses - $50,000
• Barwon Sports Academy – $3,000 to cover an increase in the organisation’s lease costs;
• Active Geelong - $50,000 for a 12-month membership.

Total additional operating expenditure: $556,000.

Operating result

The Council is budgeting for an operating surplus of $1.514 million in FY2024-25 (down from $2.07 million in draft budget).

Rates

Total average rate rises meet the Victorian Government rate cap of 2.75 per cent.

As part of the Revenue and Rating Plan put in place in 2021, the Council is simplifying the ratings system by reducing the variation between different rating types.

This includes reducing the variation between commercial/industrial rates and residential rates (progressively bringing the rate in the dollar for commercial/industrial properties down, in order to encourage commercial investment in our region).

Residential:

• Average capital improved property value: $768,093
• Average rates payable: $1,544.78 (up $66.53)

Commercial/Industrial:

• Average capital improved property value: $1,189,525
• Average rates payable: $4,657.59 (down $245.14)

Recycling and waste collection service charge

This charge does not sit within the rate cap.

The recycling and waste collection service charge is calculated to cover the rising costs of collection, recycling and landfill disposal. These include direct, indirect and overhead costs.

The charge for 2024-25 will increase from $457.25 to $473.25 (3.5 per cent).

Income

Total budgeted income is just under $673 million.

This includes $104.7 million in non-monetary contributions such as assets handed over by developers, which become the Council’s responsibility to maintain.

Rates and charges are budgeted to make up 48.2 per cent of total income at $324.1 million, while $73.9 million (11 per cent) will come from operating grants and $69.4 million (10.3 per cent) from user fees.

Expenditure

Total expenditure in 2024-25 is budgeted to be $492.4 million.

Where the money goes (top 10 sources of expenditure):

• Capital projects delivery – $207.7 million (35.1 per cent)
• Waste management – $63.6 million (10.7 per cent)
• Services and internal services - $55.4 million (9.4 per cent)
• Asset management and maintenance – $46.4 million (7.8 per cent)
• Family services - $34.7 million (5.9 per cent)
• Parks and reserve management – $33.8 million (5.7 per cent)
• Recreation and sport – $32.7 million (5.5 per cent)
• Community programs and venues – $25.7 million (4.4 per cent)
• Statutory and strategic planning – $24.2 million (4.1 per cent)
• Community care – $21 million (3.5 per cent)

Services

The cost of services we deliver to the community during the 2024-25 financial year is budgeted to be $387.7 million, which is an increase of $28.3 million on the 2023-24 forecast result.

This increase reflects the rising price of materials and service delivery, and our region’s growth.

The four-year budget forecasts our service delivery costs will pass $400 million in 2025-26 and hit nearly $430 million by 2027-28.

Capital Projects investment

Four-year capital projects forecast:

• 2024-25 – $203.9 million
• 2025-26 – $203.9 million
• 2026-27 – $203 million
• 2027-28 – $137.2 million
• Four-year total – $748 million

Capital expenditure by category – 2024-25

• Roads, paths, kerb and channel and drains – $50.8 million
• Land acquisitions – $46.4 million
• Parks, open space and leisure – $37 million
• Buildings – $28.7 million
• Waste management – $10.1 million

Highlights of capital projects added or reinstated since 2023-24 budget:

• Landy Field pavilion and facilities upgrade
• Ocean Grove bike track
• Shared trails masterplan Bellarine implementation (design of one of three major shared trail routes)
• Wallington Reserve pavilion upgrade
• Richmond Oval reserve, Geelong, netball upgrade
• Aldershot Reserve, St Albans Park upgrades
• Thomson Recreation Reserve upgrade
• Grinter Reserve, Newcomb lighting and safety netting upgrades
• Chilwell Library redevelopment
• Elderslie Reserve, Newtown female friendly change facilities upgrade
• Hamlyn Park, Hamlyn Heights female friendly change facilities upgrade
• Queens Park female friendly change facilities upgrade
• Winter Reserve, Belmont netball facilities upgrade
• Kyema Drive, Lara drainage improvements
• Myers Reserve, Bell Post Hill upgrades
• Moorpanyl Park, North Shore upgrade
• Norlane Community Centre redevelopment
• Windsor Park, Norlane, change facilities, pavilion and other facilities upgrades

Environmental protection initiatives

Funding for projects that will help protect the environment include:

• significant capital investment to enable the rollout of Food Organics Garden Organics (FOGO) and glass kerbside bin collection services in the coming years;
• $300,000 in 2024-25 to start planning for a new regional waste hub, with money allocated for construction in the following years;
• electrification of the Kardinia Aquatic Centre boiler;
• continued development of the Sparrovale Wetlands nature reserve in Armstrong Creek;
• $2.38 million over the next four years for the annual environment reserves improvement program; and
• completion of the region-wide rollout of LED smart controlled street lighting.

Borrowings

We are budgeting for $15 million in new borrowings in 2024-25, taking our total borrowings by the end of the FY to $189.4 million.

These new borrowings will help us fund the delivery of community facilities and infrastructure.

Fees and charges

All fees and charges were listed in the draft budget for the community’s review.

Increases to fees and charges have been minimised where possible, but there are increases to reflect the current economic climate.

Hospitality industry support

Aiming to help support and stimulate our local hospitality industry, all al fresco dining and busking fees have been reduced by 50 per cent on 2023-24 levels.

Community Grants

The total Community Grants budget is $4,478,500 (up $431,000 from $4,047,500 in 2023-24).

Within this, the budget for our major Community Infrastructure Grants has risen $300,000 to $3 million.

Recognising the importance of community-led environmental projects, our climate change grants budget is up $50,000 to $180,000.

Arts and Culture funding agreements

In total there is $17,500,321 allocated to support the operation of arts and culture venues, which includes libraries.

Geelong Gallery, Platform Arts and the Geelong Regional Library Corporation (GRLC) will all receive increased funding contributions.

The contribution to Geelong Gallery has increased by $30,000 on the draft budget, taking the total funding agreement to $1,365,339.

Aquatic centre funding

Kardinia Aquatic Centre and North Bellarine Aquatic Centre have both been budgeted to operate year-round.

Geelong Major Events

The Geelong Major Events budget is $2.19 million, up from $1.17 million in 2023-24.

This figure includes $630,000 for the Australian International Airshow, which was not required in 2023-24 because the event runs every two years.

The GME budget includes the Council’s existing commitment for Pako Festa and an increased contribution toward the Cadel Evans Great Ocean Road Race of $260,200 (up from $140,000).

The total budget includes a further allocation for attraction/retention of additional major events of $1.2 million (up $270,000 from $930,000).

Commonwealth Games

A $5 million contribution towards Commonwealth Games venues has been removed from the 2025-26 capital works budget, replaced by a $118,660 contribution towards Commonwealth Games legacy asset delivery (split between 2025-26 and 2026-27).