We can’t afford games without government assistance, Geelong’s deputy mayor Anthony Aitken says

Under growing financial stress, Geelong council may need to lift rates beyond a cap and borrow more to fund its share of the 2026 regional Commonwealth Games, its deputy mayor says.

Councillor Anthony Aitken with councillor Kylie Grzybek at Lara. Picture: Alan Barber

Geelong council may have to lift rates and increase its borrowing capacity to deliver what is needed for the 2026 regional Commonwealth Games, deputy mayor Anthony Aitken says.

Mr Aitken said council’s quarterly financial report, which predicted a million-dollar deficit in 2022-23, showed it could not afford to take on the added financial cost of the Commonwealth Games without significant support from the state and federal government.

Geelong is due to host hockey, swimming, diving, beach volleyball, cricket, gymnastics, the triathlon and weightlifting during the games which will be held across Geelong, Bendigo, Ballarat, Gippsland and Shepparton.

Mr Aitken, also a finance manager at a Geelong school, said pressures from cost increases to council’s infrastructure projects and a 2022-23 budget which could be in deficit placed council in an enormously difficult position.

Anthony Aitken and Trent Sullivan. Picture: Supplied

He said the Commonwealth Games was the biggest financial risk council confronted.

“The Geelong council (wholeheartedly) supports the delivery of the Commonwealth Games in regional Victoria,” Mr Aitken said at a council meeting on Tuesday night.

“This is a once in a lifetime opportunity for the council and the community - but our latest financial results do indicate, sadly, at this point in time we can’t afford it.

“Council may have to actually borrow funds to spread the costs associated with the Commonwealth Games across future generations.

“At some stage we will have to look at rate capping, councils may need to... put a proposition to the state government that we do need to seek an exemption from the rate capping to actually pay for our contributions towards the games.”

It is not clear how much the state government will ask Geelong council to contribute to the games. The state government has already committed millions to the games, and millions more will be needed.

Council’s financial report for the first two quarters of 2022-23 shows:

— Rates, fees and charges brought in $156m between July and December;

— Employee costs have hit$101m; and

— Assets owned by council are worth more than $175m butit had $132m of liabilities.

Responding to Mr Aitken’s Commonwealth Games comments, councillor Peter Murrihy said: “I don’t necessarily agree with those but it’s challenging times. The rise in infrastructure costs that the council are looking at for the next couple of years is enormous. The upcoming budget will really challenges us.”

Mr Aitken said council’s financial result between July and December reflected “wage pressures” council was “under to try and retain staff and also recruit staff”.

“This deterioration of our financial position does reflect the continuing impact that inflation has on us and the cost for us to actually do our business as a government.”

City of Greater Geelong mayor Trent Sullivan said the council was fully supportive of the games.

“The games present an opportunity to support Geelong’s long-term population growth by leaving a lasting legacy including improved facilities that will provide great community outcomes,” Mr Sullivan said.

“The event will deliver around $650 million in infrastructure investment in Geelong, which will be a hugely beneficial outcome.

“We are in discussion with the Victorian Government about how much we will be expected to invest.

“We have made it clear that we have very limited funding available, but we will consider investment where it will help the legacy facilities best meet the needs of our community.

“We have and will continue to commit significant staff resourcing and effort to help showcase Geelong through cultural and community activities, and create a memorable event for our residents as well as visitors.”

Councillor Kylie Grzybek said: “We need to... have a really close look at the things that we’re delivering and the things that we do as a council. I think we look at them in buckets about what is nice to have, what is essential and where can we really get value for money for our community.”

Council has forecast a full-year $1.4m operating deficit in 2022-23.

Originally published as We can’t afford games without government assistance, Geelong’s deputy mayor Anthony Aitken says