City splashes cash in budget to support community’s recovery

SUPPORTING the community’s recovery from the coronavirus pandemic – to the tune of $562 million over 12 months – is the focus behind the City of Greater Geelong council’s proposed 2020/21 budget.
The draft budget unveiled on April 28 will see heavy investment in capital works, infrastructure and programs designed to reboot the region’s economy.
Geelong mayor Stephanie Asher said despite the option to delay the budget’s release, budget deliberations were “well advanced” prior to restrictions, meaning council could release the draft and “provide some certainty in a difficult time”.
“This budget demonstrates the council’s commitment to directing investment toward the programs and services which will help our region to recover in the aftermath of this global emergency.”
“It reaffirms that our biggest priority is our community’s long-term health and assisting those in need.
“A key focus is also on maintaining our commitment to a significant capital works program ($161.2 million on infrastructure investment and support programs).
“This will be crucial in helping to keep people employed, allow services and activities to best return to normal and improve access to essential services for our community.”
To fund the capital program, the city plans to borrow $66.9 million (including $7.3 million deferred borrowings from prior years), with $138.6 million the total amount in borrowings as of June 30, 2021.
Projects that started during 2019/20 with further funding proposed in the draft budget include: civic accommodation $51.4 million, digital modernisation project $6.6 million, Elcho drain construction $3 million, the redevelopment of Western Oval Pavilion $4.3 million and the LED street lighting program.
A $4 million community grants program, in conjunction with council’s initial $4.9 million COVID-19 support package, will seek to provide further direct assistance to those in need.
The economic impacts of the coronavirus are forecast to cost the city a total of $15.3 million in support packages, associated costs and lost revenue by the end of 2020/21.
The city’s finance portfolio chair Cr Anthony Aitken said while the council originally planned to deliver a break-even budget in 2020/21, there would now be an $8 million deficit.
“None of us anticipated the unexpected challenges that the COVID-19 pandemic has imposed on us, our council budget included.
“The proposed 2020/21 council budget is fair and financially sustainable; it is mindful of those who need assistance and focuses on recovery measures to support our economy in Geelong when other businesses cannot.”
The council has removed the flat municipal charge on all properties, and included an average residential rate rise of 1.9 per cent – under the state government’s 2 per cent cap.
An increase of $24.59 on average rate bills (bringing the average rates spend to $1,310.21) will absorb the charge, with ratepayers of higher value properties to pay more than those who with lower value properties, according to the report.
A significant financial hardship policy has been created to provide residents experiencing financial difficulties as a result of the pandemic, the ability to waiver on fees, charges and interest on all debts and/or put their rates payments on hold.
The city announced on April 29 that as part of the city’s 2019/20 budget, businesses will receive a $556,000 boost during the pandemic and council rates will be waived from April 1 to June 20 of this year for the estimated 130 Greater Geelong businesses which have been required by state government restrictions to close.
The council has also endorsed a total of $283,907 in financial support to the 1,482 local businesses who pay the Central Geelong Special Rate, which will cover a quarter of the annual special rate.
In the report, city chief executive Martin Cutter and mayor Stephanie Asher reiterated this was a “baseline budget” which may be updated as the “full extent” of the impacts of the pandemic became clearer.
The proposed budget can be viewed online at yoursay.geelongaustralia.com.au, a hard copy is available upon request and submissions are invited and will be received until May 26.