By Cam Lucadou-Wells
Greater Dandenong councillors say they are uneasy with rate hikes and soaring debt outlined in the draft 2023-’24 budget.
The draft is open for public comment until 24 May, followed by a councillor vote in June.
Cr Tim Dark, who abstained from voting for the draft budget’s public exhibition, told Star Journal that “I couldn’t put my name to something not in the best interests of ratepayers”.
His concerns include the impact of a 1.85 per cent rates hike on “financially struggling” households.
It’s well shy of the full 3.5 per cent rates cap, but the median household rates bill – when including the waste charge – will rise from $1459 to $1504.
In total, that’s a 3.11 per cent total increase.
Cr Dark also abstained from endorsing the public exhibition of the long-term financial plan due to the council’s proposed borrowings.
According to budget papers, Greater Dandenong is set to borrow extensively to fund three major projects – the $22m Keysborough South Community Hub, the $98m Dandenong Wellness Centre (the new Oasis) and the $30m Dandenong Community Hub.
They will be funded by nearly $75 million in loans and $34 million from reserves over the next four years.
Debts are expected to peak at more than $100 million in 2027.
With escalating interest rates, the cost of paying back the loans will also rise, Cr Dark said. It is expected to outstrip the interest earned on the council’s investments.
Cr Dark said the council could instead save money with “efficiencies” in procurement, project cost blowouts, services costs and staffing levels.
Cr Rhonda Garad said the draft budget was an “ambitious” and “important” program in “difficult times” but was also concerned about debt.
She questioned the wisdom of building a new Dandenong Oasis for “an extraordinary amount of money” rather than refurbishing.
“We’re facing dangerous financial waters, with very dark economic skies ahead for the community.
“It’s very risky to be heading in that direction at all.”
On rate rises, the council’s “hand has been forced” due to a “myriad of costs” including inflation, insurance and a staff EBA deal, Cr Garad said.
In support of the budget, Cr Jim Memeti said the council’s financial position remained sound and new borrowings weren’t sought until 2024-’25.
“This council is probably one of the busiest in Victoria in doing things and getting on with the job.
“The council is still in a very good position and we want to deliver on services for the community and to continue to build new assets.
“We can have the best facilities, no matter what postcode you live in.”
Council Watch vice-president Dean Hurlston said the budget failed to put “downward pressure” on rates and fees, yet halved its spending on roads, footpaths and parks.
“There is no delivery for the thousands of households under cost of living pressure.”
The council’s finance costs – fueled by its borrowings – would almost triple in three years, Mr Hurlston said.
“I urge councillors to reject the budget and ensure it represents the pressure on community households.”
Mayor Eden Foster recently said the budget was balancing the protection of ratepayers “feeling the financial strain” with providing long-sought community projects.
She said some projects would be delayed because of the challenging financial environment afflicting “all levels of government”.
“We have to pull the financial reins a bit.
“We don’t want to stop altogether. There are certain things that the community needs.
“We have significant ageing infrastructure and a need for new community facilities.”
The proposed budget is on public exhibition until 24 May.
