City of Greater Geelong council infrastructure pipeline cost up by 30pc from $800m base

The roll out of $800m of council upgrades to sports clubs, libraries, roads and parks is being assessed amid a 30 per cent cost increase.

City of Greater Geelong deputy mayor Anthony Aitken, left, and mayor Trent Sullivan Picture: Supplied

Geelong council is staring down the barrel of an estimated $150m increase to its pipeline of major projects across financial years leading up to June 2026 as it works to release its 2023-24 budget in coming weeks.

The cost of building new and refurbishing existing council infrastructure has risen by between 10 and 30 per cent in the City of Greater Geelong, prompting a warning that tough decisions to prioritise work are ahead.

Council officers are currently assessing the roll out of the projects which include upgrades of sports clubs, libraries, roads and parks to decide if some can be pushed further into the future.

***A FULL LIST OF COUNCIL’S 2022-23 TO 2025-26 CAPITAL PROJECTS PROGRAM IS AVAILABLE HERE FROM PAGE 67 OF THE DOCUMENT***

The council’s finance chair Councillor Anthony Aitken warned the scope of some projects may change to meet budget allocations.

Mr Aitken, also the city’s deputy mayor, said a review of the cost of council’s infrastructure projects had begun but the overall cost increase wasn’t known.

“We’ve looked at our next four years of infrastructure funding and we’ve... re-evaluated the costings,” Mr Aitken said.

“It’s about an $800m funding pipeline of new infrastructure and asset renewal and we know that the cost escalations have been between 10 and 30 per cent on nearly everyone of those projects.

“When we finish (the cost assessment) in a few weeks time, it may be more (than $150m) or it may be less. But it is the magnitude of what we’re look at.”

Mayor Trent Sullivan said construction costs rose by 17.3 per cent in 2021-22 and have continued to climb in 2022-23, which meant several projects listed in the city’s four-year capital works program faced funding shortfalls.

He said it was too early to confirm which projects would be put on hold.

“The situation is challenging for the council and we know it’s disappointing for the community, especially the clubs and groups who are waiting for these facilities to be built,” Mr Sullivan said.

“The council will be doing its best to find ways to deliver as many of our planned projects as soon as possible, but the reality is that with limited revenue available, there will be some tough decisions to make.

“The known funding shortfall for existing projects, along with continued cost increases, are also expected to limit our ability to fund new projects in the future, including in the 2023-24 council budget.”

Capital expenditure year-to-date is $75.5m against a year-to-date budget of $85.4m.

Between December last year and July 2023 Geelong council will spend $26.9m on the Northern Aquatic and Community Hub (NACH) at Norlane, $4.7m for the Armstrong Creek town centre, $3.2m on the Drysdale library, and $2.9m on resurfacing roads.

Artist impression of the Northern Aquatic and Community Hub at Norlane

Since July council has spent $13.4m on the NACH at Norlane that will include pools, a spa, sauna, steam room, gym, occasional care facilities, cafe and 1000sqm of multi­-purpose community space.

This financial year it has also spent $6.4m on designing and constructing the Armstrong Creek West Community Hub, $4.1m on the outdoor 50m pool at Drysdale, $3.3m on resurfacing roads, $2.9m on the Drysdale library, $1.7m on building new footpaths and $800,000 on the Armstrong Creek town centre library and learning hub.

Mr Aitken said the Geelong council had advocated to be formally classed as a growth area which would trigger more funding from the state and federal governments.

Originally published as City of Greater Geelong council infrastructure pipeline cost up by 30pc from $800m base