Melbourne Councils cop financial hit post COVID-19

Melbourne councils hit by COVID-19 revenue losses have called for a funding boost to kick start local infrastructure projects and create jobs.

Melbourne councils say infrastructure spending is needed to create jobs and kickstart local economies. Picture: iStock.

Councils in Melbourne’s west are calling for government spending to help build their communities out of debt.

Brimbank Mayor Ranka Rasic said developments such as her council’s $60 million St Albans Health and Wellbeing Hub were shovel ready, all that was needed was for state and federal politicians to dig deep.

“Council has helped successfully advocate and welcome over $104.8 million in Federal Government, State Government, and non-government investments,” Cr Rasic said.

“Whilst (the) council acknowledges these investments, significantly more will be required as part of the upcoming 2021-22 federal and state budgets … to support our community to respond, recover and rebuild.”

To date, the State Government has agreed to pay just $2 million of the project’s cost, while the council has been left to foot the remainder of the bill.

Construction is expected to create about 100 jobs as well as 120 ongoing roles once opened, and Cr Rasic said help was needed to pay for projects that would help the community get back on its feet.

Hundreds of thousands of Victorians lost their jobs or had their hours cut after the pandemic struck in March.

About 3500 jobs were lost a day across the country according to a report by the Institute of Public Affairs.

Brimbank took a hit to its bottom line due to lost rates revenue in 2020, with at least 477 applications for rate help in the form of waivers, deferments and payment arrangements approved by the council.

Wyndham Council chief executive Kelly Grigsby said Covid’s full financial impact was yet to be known, but like other councils Wyndham had suffered revenue losses due to forced venue closures.

With Melbourne returning to a “covid-normal”, she said the council would work to advocate for more investment in the area to boost jobs and help families and businesses get back on their feet.

“Council has been and continues to work on a range of strategies to ensure all our residents and businesses are supported,” she said.

“This includes actively pursuing investment opportunities to bring more jobs to our city, as well as creating healthy, vibrant town centres that add to our liveability.”

Both councils confirmed councillors continued to receive their full salaries last year, though Wyndham Council’s senior staff had their wages frozen at the start of the pandemic.

Maribyrnong Council chief executive Stephen Wall said his council had earmarked $11 million since April to help households and businesses affected by the pandemic.

The council was also working on a budget and a four year plan to ensure it met the communities needs as it recovered from the impact of COVID-19, he said.

Maribyrnong Council would not say if staff or councillors took a pay cut last year.

“Council also lost approximately $7 million in revenue as a result of service closures and due to the redirection of resources into areas of high community need,” Mr Wall said.

“We continue to work diligently to gradually reopen our services in line with advice from the State Government.”

The State Government has been contacted for comment.