For the first time in more than two years, the City of Greater Geelong’s budget is back in the black.
At Tuesday’s meeting, the council endorsed its draft budget, which included a $107,000 operating surplus over the next 12 months.
“The last two years has seen Geelong council budget for significant annual deficits due to COVID-19,” finance portfolio chair Anthony Aitken said.
“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.”
Deputy mayor Trent Sullivan said the council had put together a “balanced” budget that managed ensuring the city was in a stable fiscal position while also providing the infrastructure and services needed by the community.
A key feature in the budget will be a 1.75 per cent rate rise.
However Cr Aitken said the way the state government’s rating system worked, combined with increasing property values in the region, meant most homeowners would see larger increases, particularly in Ocean Grove and the Bellarine.
Cr Aitken said revaluations showed properties in the Bellarine ward had increased by an average of 30 per cent, while the remaining wards saw an average of 20 to 25 per cent.
That meant residential rate revenue would rise by 4.54 per cent, which would see an extra $60 added to the average rate bill.
However with industrial and commercial property values not matching that growth, they will see their average rates bills drop by $300 to $500.
Cr Aitken said the rate differential created a better balance between the share of rates paid by residential and commercial ratepayers.
Along with the rate increase, the city intends to borrow $71.3 million, including $14.8 million carried over from previous years.
The income will help the city to provide its record capital works spend of $206.6 million, which Cr Aitken said would make sure the city was responding to the needs of its growing population.
Almost 30 per cent of the capital works budget will go towards two projects, with $50.4 million allocated to the Northern Aquatic Hub in Norlane and $10.7 million to the North Bellarine Aquatic Centre in Drysdale.
There is also significant funding for libraries, with $7 million for the Armstrong Creek Town Centre Library, $6.15 million for the Drysdale Library and $1.4 million for the Chilwell Library.
The budget also includes a $4.2 million commitment to the Lara Recreation Reserve, $2 million for Osborne House and $2.3 million for Landy Field.
In line with the council’s 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 $45.6 million has been allocated to renew existing assets in 2022-23 with the sum to rise every year – to $56.9 million in the forecast 2025-26 budget.
Cr Aitken said the council had previous been underfunding asset renewal in previous years and needed to gradually increase the amount spent ensuring the City’s $3.6 billion worth of assets were in useable condition for the community.
Cr Sullivan added the draft 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,” he said.
“We have also honoured the commitments we unveiled last year, and added further projects that align with council’s sustainability goals.”
The council has also committed $9 million to its Community Grants program.
However to try and help the council reduce its borrowings and reduce debt in future budgets, it is looking at selling four surplus properties.
The land holdings, which include the Civic Car Park, the Busport Car Park, a Reynold Roads property in Belmont and the land where Corio’s KFC is located, are not in the council’s long-term plans and are likely to attract interest, given they all host commercial activities.
“To help balance upcoming budgets, reduce our borrowing levels and invest in priority projects, we propose to sell properties that are surplus to our long-term plans,” Cr Sullivan said.
“Conditions of purchase would be imposed on two of the properties, to ensure community access can continue into the future.”
In conjunction with the proposed 2022-23 budget, the council is undertaking a community engagement process to gain feedback on the proposed sales.
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, the council is now seeking public feedback on its proposed 2022-23 budget, rating and revenue plan and potential sale of assets.
Budget documents can be found and submissions made online at yoursay.geelongaustralia.com.au/CAFP until Tuesday, May 24.
