Ratepayers fork out for $600k Town Hall staff budget increase

The huge wages budget for City of Melbourne fat cat executives has been revealed, as the number of ratepayers skipping meals to save money has skyrocketed.

Town Hall fat cats secured a multimillion-dollar ratepayer-funded bonanza last financial year.

The City of Melbourne’s annual report shows that the money paid to “key management personnel” ballooned from $3.8 million to $4.4 million in the 2023-24 financial year, compared to the previous year. The number of top level bureaucrats also increased to 20, from 19, in the same period.

One Town Hall fat cat was paid between $580,000 and $589,999 but the Herald Sun understands that figure includes a financial settlement for someone who left the council.

It comes as the council’s annual report shows Melburnians are doing it increasingly tough, with a huge jump in the percentage of people skipping mealsand feeling insecure about where their next meal would come from.

The annual report shows that in 2023-24, the number of people skipping meals increased to 31 per cent, up from 19 per cent the previous financial year, and almost half of residents were reporting food insecurity – 48 per cent.

Melburnians are feeling the cost of living crunch, with the amount of people experiencing food insecurity increasing. Picture: Daniel Pockett

Council Watch president Dean Hurlston said the City of Melbourne, and all Victorian councils, needed to do more to reduce the cost of living pressures felt by residents.

“To have 20 or more execs as key management personnel, that begs the question, what is the demonstrated public benefit here?

“We would say that right now that all councils should be rationalising upper management and executive positions and driving cost savings.

They must put downward pressure on rates bills to help with the cost of living – especially at a time when people are reporting such shocking figures about food insecurity.”

Mr Hurlston said most ratepayers would raise an eyebrow at paying an individual executive close to $600,000.

Melbourne Town Hall staff budget ballooned from $3.8 million to $4.4 million in the 2023-24 financial year. Picture: Ian Currie

“That is an extraordinary amount of money,” he said.

“Of course we want capable, effective, executives but there also needs to be a balance with ensuring ratepayers get value for money.”

“Council says several senior execs left council, the question is why and why do we pay for their controversies or departures?”

A City of Melbourne spokeswoman said: “like any standard workplace, when an employee leaves their role, they are paid out their entitlements.”

“Several executives transitioned out of Council in 2023–24.

“Since then, both the number of executive staff and total executive salaries have decreased.

However, the 2023-24 annual report does not show there to be any decrease in executive staff numbers or overall remuneration.

City of Melbourne’s CEO Alison Leighton is paid $535,000 annually – which includes both salary and superannuation.

Originally published as Ratepayers fork out for $600k Town Hall staff budget increase