Community facilities at risk amid city budget squeeze
MILLIONS of dollars’ worth of planned construction projects will be put on hold or altered as the City of Greater Geelong searches for savings in its under-pressure budget.
The city will release a draft of its 2023/24 budget at the council’s next meeting on Wednesday (April 26) and has warned of pain in the form of reduced capital works spending and higher rate increases.
It has confirmed it will pass on a 3.5 per cent overall rate increase – the maximum allowed under the state government cap.
Latest estimates have the city tracking towards a loss of more than $8 million in this financial year, after it had projected a breakeven budget for 2022/23 this time last year.
The city says it is now $130 million short of fulfilling its previously outlined four-year capital works program, pointing to ongoing inflation pressure and a reported 17.3 per cent jump in construction costs as primary causes.
In last year’s spending plan, the city budgeted $619 million worth of building projects through to June 2026, but appears set to significantly reduce that commitment.
Major building projects funded in the four-year plan that could now be paused include:
- Lara Early Years Library and Community Hub (approximate total cost $20.6 million)
- Armstrong Creek-Horseshoe Bend Precinct Neighbourhood Activity Centre, including early years hub and community spaces ($11.5 million)
- Armstrong Creek East Local Activity Centre, including early years and community spaces (approximate cost $9.5 million)
- Eastern Child and Community Centre at Lara West ($6.1 million)
- Landy Field refurbishment, including pavilion upgrade ($5.9 million)
- Bell Park/Bell Post Hill Enhanced Early Years and Community Hub ($5.5 million), and
- Queen’s Park golf course redevelopment ($3.1 million)
The city’s acting chief executive officer Kaarina Phyland said ahead of the budget that the financial squeeze would result in tough decisions.
“With huge cost increases in the construction sector in particular, but also right across the board, this budget needs to focus on what council can afford and protect as much as possible of the core service delivery that the community demands of local councils
“While the council will continue to invest strongly in community assets, rising costs mean our funds won’t stretch as far.
“Unfortunately, this means the draft budget will bring disappointment in the community as previously promised projects are paused and new initiatives cannot be funded.”
Geelong mayor Trent Sullivan said the council’s budget focus would shift to longer-term financial sustainability.
“Now is the time for council to position itself to be able to keep responding to population growth in the future and renewing ageing assets, and to be mindful of the upcoming requirements for Geelong’s participation in the Commonwealth Games, which will be a once-in-a-lifetime event for our region.”
The city’s April meeting is at Geelong West Town Hall on Wednesday at 6pm.