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Council budget for FY21 has Bayside in strong position but rates will go up

A “zero debt” City of Bayside has decided to sting ratepayers with a bigger bill, with the mayor arguing the extra cash allows investment on a COVID-19 recovery plan. Big infrastructure spending is also on the cards.

Bayside Council has released its draft budget for FY21, showing a strong bottom line. Picture: Hamish Blair
Bayside Council has released its draft budget for FY21, showing a strong bottom line. Picture: Hamish Blair

Bayside Council will sting residents the maximum amount possible in a rate increase next financial year, despite its bottom line reflecting a strong position.

Residents will fork out an extra two per cent in rates, which is the maximum possible under the Victorian Government’s Fair Go Rates System.

Mayor Cr Clarke Martin said the increase in rates would help to support the Bayside community during the COVID-19 pandemic.

“Rates are council’s main form of income and we will use them to continue to support our vulnerable community members, traders, and businesses who are facing significant financial hardship during the COVID-19 crisis,” Cr Martin said.

He said Bayside’s COVID-19 recovery plan includes reinvigorating local shopping villages and employment hubs once social distancing requirements are relaxed.

HAVE YOUR SAY: Why are you happy or not to shoulder a rate rise this year? Tell us in the comments section below.

But despite a $6 million shortfall in revenue due to the coronavirus pandemic, the council’s bottom line is looking healthy.

It means the City of Bayside can invest a large chunk of its $138.1 million budget into capital works and infrastructure upgrades including construction of the new Thomas Street Reserve playground, reconstruction of the Sandringham Athletics Track and a refurbishment of the Sandringham Masonic Hall.

Phase one of the Elsternwick Park Nature Reserve is also on the 20/21 expenditure plan as well as new public toilets at Thomas Street Reserve and Green Point, completion of the AW Oliver Reserve pavilion, planning for the Dendy Street Beach pavilion and redevelopment of the Bayside Netball Centre and Beaumaris Arts Centre.

The investment in capital works, which is expected to be about $38 million – down from about $44 million this financial year – includes $12.9 million on parks, open space and streetscapes; $12.4 million on buildings and $3.7 million on roads.

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Cr Martin said the pandemic would affect the way the council operated in future.

“We have rapidly adapted to the new environment and continue to deliver for our community, diverting staff and resources into critical areas such as caring for elderly and vulnerable residents as well as supporting local businesses,” he said.

“Fortunately, prudent management over time has placed us in a strong financial position with zero debt which means we are well placed to weather the COVID-19 storm in the short term.”

The draft budget was released for public comment today.

james.mottershead@news.com.au

@mottersjames

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Original URL: https://www.heraldsun.com.au/leader/inner-south/council-budget-for-fy21-has-bayside-in-strong-position-but-rates-will-go-up/news-story/c3db4d1774b3953ac368a82db76166e5