City back in black as it plans record building budget

THE City of Greater Geelong expects to return to surplus and deliver a record capital works program in the next financial year, after councillors approved a 2022-23 draft budget this week.

COGG predicts a $100,000 positive result for the next financial period, which will ramp up to more than $3 million within four years as the city anticipates Geelong will leave COVID restrictions behind and return to the black.

The city will pass on the maximum allowed average rate increase and investigate property sales worth more than $50 million as part of the fiscal plan, which it said is themed on bringing the budget back to balance after two years of severe pandemic impacts.

Councillors endorsed the draft budget for public exhibition on Tuesday night, which finance portfolio chair Anthony Aitken praised as an important milestone following recent challenges.

“Delivering a break-even budget straight after COVID-19, and in a rate capping environment of 1.75 per cent, is a major financial achievement for council, while maintaining significant commitments and meeting the demands the continued population growth is placing on us,” Cr Aitken said.

Most resident rate bills will rise by more than the 1.75 per cent rate due to city strategies to deliver a more equitable rating system that lowers costs for businesses, which lowers rates for commercial and industrial-zoned properties.

But the bottom-line rate bill increase is still well below the jump in property values across the municipality since last year, with some areas recording 30 per cent growth since last year’s valuations.

The mammoth infrastructure budget is headlined by $50.4 million in the next financial year for the Northern Aquatic and Community Hub, $10 million for the North Bellarine Aquatic and Leisure Centre, and early works for Armstrong Creek and Lara learning hubs.

The city will add $4 million to bill of the Northern Aquatic and Community Hub as part of the budget, to convert the facility from electricity to renewable electricity.

The $206.6 million capital works bill would be the largest infrastructure spend ever by COGG – it had predicted $209 million in 2021-22 but revised that figure to $182 million in the next year’s draft.

Forward estimates also project an increase in asset renewal spend, from $45.6 million to $56.9 million by 2025-26, to address a maintenance funding shortfall.

“Council has made a strategic decision to increase the amount of funds we use on revitalising older infrastructure across Greater Geelong,” deputy mayor Trent Sullivan said.

“We have also honoured the commitments we unveiled last year and added further projects that align with council’s sustainability goals.”

Meanwhile, the city will seek community feedback on a plan to sell four council-owned commercial properties worth $52 million to boost future budgets.

The council said it would add conditions to potential sales of a Gheringhap Street car park and Belmont maternal health centre to preserve the facilities for future community use under the proposal.

Submissions on the budget and the land sale plan are open until May 24.