In a period of “great uncertainty”, residents face a $46 average rise in their rates and waste charges under Greater Dandenong Council’s draft 2020-’21 budget.
Greater Dandenong will not be repeating its recent $4 million Covid-19 relief package, which included rates rebates and rent waivers up to 30 June.
But it has set aside a $5.3 million contingency fund and slashed its capital works investment by $8 million to manage the pandemic’s “enormous disruption” into 2020-’21.
“The 2020-21 Budget has been developed during a time of great uncertainty with short and long-term effects of COVID-19 across our community very much unknown at this point,” a council report tabled on 27 April stated.
“This Budget is well positioned for recovery when restrictions relax, and that Council can quickly support the return of a strong long economy.”
With the challenges, the current year’s budget is on track for a $2.1 million deficit.
This would be improved to a “breakeven” result after discretionary spending is deferred and savings identified, the budget report states.
Some of the unanticipated costs included $50,000 more legal costs in the “health department”, security measures against rising anti-social behaviour in council car parks, increased utility and cleaning costs at Dandenong Civic Centre and a downturn in fees and fines.
As the Covid-19’s impact unfolds, the draft 2020-’21 budget may also undergo “necessary” changes prior to its adoption on 22 June.
“It is anticipated that some financial impacts may very well flow onto the first quarter of 2020-’21 and beyond.”
One unknown is whether rental returns from Dandenong Market will continue to be hit. The council waived $1.45 million in rents at the market as part of April’s stimulus package.
The $42.7 million capital works program – down from $69 million in 2019-’20 – includes widening Abbotts Road in the Dandenong South industrial area, stage 1 of the Keysborough South Community Hub and an access road between the hub and Springers Leisure centre.
Other proposed works are a new pavilion and all-abilities playground in Ross Reserve, Noble Park, the final stage of Greater Dandenong Gallery of Art and Parkfield Reserve oval, Noble Park.
Dandenong Park’s reconstruction will continue, with a concept design for Riverend Park and a detailed design of the new Dandenong Oasis also proposed.
New projects are also planned at Dandenong Market, as well as the completion of Springvale’s new community precinct.
The latter precinct is predicted to cost the council an extra $1.6 million a year to operate.
Upcoming capital works also includes $20.5 million on renewing ageing roads, drains and buildings – much of which was built in the 1960’s and 1970’s, according to the council.
The median residential rates and waste charges bill is expected to rise from $1390 to $1436 – a rise of 3.3 per cent.
The hike includes a proposed $42 rise in the waste charge.
The charge was marginally reduced from $48 due to the State Government deferring its landfill levy rise from July to January 2021.
Under the 2 per cent rates cap, the rates component rose an average of 0.4 per cent – or $4 – for residents, depending on property valuations. The commercial rates rise was 0.03 per cent, industry and farms 4.1 per cent and vacant residential 6.4 per cent.
Public submissions on the council’s proposed budget close at 5pm on Tuesday 26 May. Copies of the budget are at greaterdandenong.com/document/34/council-plan-and-annual-budget
