by Cam Lucadou-Wells
Greater Dandenong Council has put the brakes on an aquatic centre project as its finances have taken a hit, according to its revised 2024-’25 mid-year budget.
In a report tabled on 28 January, the increasingly cash-strapped council announced a $789,000 “unfavourable” result fueled by rising costs.
This was softened by deferring $28 million of spending and borrowings on the future $100-million-plus Dandenong Wellbeing Centre “based on a recent review of future cash flow projections”.
Greater Dandenong also deferred $650,000 of spending on its CCTV renewal program until 2025-’26.
This was used to fund a “high priority” resurfacing of Dandenong Stadium courts after a player’s leg went through floorboards.
Spending on the Dandenong Community Hub project was also transferred to develop the Dandenong Market Precinct Master Plan.
According to the report, rising cost pressures were “placing immediate pressure on Council’s financial sustainability”.
Contract costs for tree pruning, cleaning, security and animal pound services had blown out by more than $3.4 million, the report stated.
Another unbudgeted impost was $359,165 on legal expenses during the Sandown Racecourse Advisory Committee Hearing last year.
Chief executive Jacqui Weatherill told the 28 January meeting that all local governments were “grappling with cost escalations” in what was a “statewide problem”.
The council voted to transfer $2.5 million from its major projects reserve to fund the unexpected demolition of the Precinct Energy Plant building in Dandenong.
The PEP, which was planned to be a future community arts hub, was found structurally defective and unable to withstand a significant earthquake.
Over the past six months, the council also transferred major project reserves to the long-delayed $12 million-plus Dandenong New Art gallery project ($1.82 million) as well as to acquire and demolish 9A Blissington Street Springvale for open space ($1.01 million).
The report recommended maximizing the use of surplus funds from the reserve, with concerns over the council’s “significant future borrowings” at expectedly high interest rates.
On the positive side of the ledger for 2024-’25 were higher-than-expected state grants, parking fines, infringements, interest on rate arrears and supplementary rates.
