By Cam Lucadou-Wells
Greater Dandenong Council will waive interest on late rates payments in its latest Covid relief measure, despite taking a massive revenue hit due to the pandemic.
According to its annual report 2020-’21, the council lost $9.6 million revenue from parking fines, fees, interest income, facilities rent, Drum Theatre and Dandenong Market.
Low interest returns on investments would cost the council about $1 million annually. It was “one of Council’s greatest risks” to its budget and financial forecasts.
The council’s supplementary rate growth had slowed, with lost revenue from civic facilities, parking fines, fees, Drum Theatre and Dandenong Market.
More than $11 million was trimmed from its capital works program in the past two financial years, as a result.
In the meantime, it spent $664,000 in Covid business grants and $245,000 on material aid relief, as well as waiving facility rents of $822,000. This was partly offset by extra State and Federal grant funding.
“The time is approaching where Council will either have to make changes to its operational services or accept that timelines for new projects will face longer term delays in order to be affordable for Council,” the report stated.
Chief executive John Bennie stated in the report that the council remained in a “healthy financial position” but it would be “tested into the future” by rate-capping and Covid-19 impacts.
The council still returned an operating surplus of more than $16 million – described as an “accounting surplus” by Mr Bennie.
Meanwhile, councillors voted to cease penalties and legal action for rate arrears across all rating categories between 1 July and 31 December 2021.
Cr Jim Memeti, who proposed the motion on 24 October, said the late-payments waiver was a “small thing that the council can do to help our ratepayers”.
“We recognise the community is going through a very tough situation at the moment.
“People have lost jobs and businesses are starting to slowly open up.”
Further Covid relief measures would be considered in the council’s mid-year budget review in December, Cr Memeti said.
Mayor Angela Long told the council meeting that the council would now “focus on rejuvenating our community and investing in our great city.
“We look forward to welcoming everyone safely back to our facilities.”
