Coronavirus Stonnington: Council to lose millions of dollars from pandemic

An inner city council is predicting a brutal hit to its savings, and has had to provide rate relief to more than 500 residents due to the COVID-19 pandemic.

Stonnington Council is tipped to post a $25 million loss in the 2020-21 financial year. Picture: Norm Oorloff.

An inner city council is set to lose tens of millions of dollars due to the coronavirus pandemic, and could slug ratepayers to help them recover.

But Stonnington Council has assured residents none of its services will be cut despite a forecasted almost $25 million loss from its pre-COVID coffers.

The council’s savings are set to take a $5.2 million hit — with its comfy surplus predicted to drop to $14.7 million.

At the end of the 2018-19 financial year, it had a $38.3 million surplus.

Stonnington has also had to provide 560 residents with rate relief this financial year, equating to a $840,000 temporary black hole.

The council did not answer questions concerning any possible pay cuts taken by the chief executive, other senior staff, or councillors.

Chief executive Jacqui Weatherill said the pandemic had “a significant impact on the city’s finances” and predicted more pain to come.

“Looking forward, we face a continued significant reduction in revenue sources that will impact our surplus, and result in having to rely more on rates to fund our services and capital works program,” she said.

“At this stage, through continued responsible financial management, we anticipate we will continue to offer a full range of services to the Stonnington community.”

Ms Weatherill said the council was yet to make a decision on rates for the next financial year.

It forecasted a $19.95 million surplus when it approved its 2020-21 budget at the end of August, and effectively froze rates following huge pressure from traders and ratepayers.

The council also decided to put off two of its pet capital works projects — the Prahran Town Hall restoration and the Percy Treyvaud Memorial Park masterplan.

Ratepayers Stonnington president and park stadium campaigner Dean Hurlston called on the council to defer both projects for another 12 months and not include them in its 2021-22 budget.
“Stonnington Council needs to recognise the reality of the times we are in,” he said.

”Discretionary spending on Prahran Town Hall, and an almost $50 million stadium, couldn’t be more inappropriate at a time when every resident and business in Stonnington is still struggling.

“They should suspend all non-urgent spending for another 12 months, and find a way to provide real hardship relief to those doing it tough.”