In a further Covid-19 blow to its coffers, Greater Dandenong Council has announced a $1 million drop in supplementary rates revenue in 2020-‘21.
It comes on top of a grim midyear budget review in December in which remaining 2020-‘21 capital works were shelved to overcome a $4 million deficit.
Corporate services director Mick Jaensch said the final supplementary rates tally would be likely half of the $2 million usually collected annually.
“You’re looking at a drop-off of roughly $1 million in supplementary rates that this council won’t be receiving due to the impacts of Covid.”
Supplementary rates – which aren’t subject to rate-capping – had been “critical” to the council’s budget in previous years, Mr Jaensch told a council meeting on 8 February.
“It means rate capping is going to cause us more financial difficulties in the year to come.
“We will budget fairly conservatively in 2021-’22 – in the hope that we are wrong.”
Councillor Jim Memeti said the supplementary rates drop showed “no development is happening”.
According to the mid-year budget, the main contributor to the council’s first cash deficit was $5.57million of “known Covid financial losses”.
But Cr Memeti said the total revenue hit was about $17 million, including the council’s continuing Covid material aid program, rates and sports club fee relief and parking fee waiver.
The council would still “find a way” to deliver on the $60 million Dandenong Oasis aquatic centre redevelopment.
The timeframe for the pledged Dandenong Community Hub project was to be discussed at a council strategic weekend in March.
