City of Melbourne to sting ratepayers for infrastructure projects, boost revenue

Melbourne residents will cough up millions more dollars in rates and fees as the council raises charges to fund infrastructure projects and increase revenue.

The City of Melbourne announced its $850.7m draft budget on Tuesday. Picture: Jake Nowakowski

Melbourne residents will fork out millions more in rates and user fees as the council hikes up charges to fund landmark infrastructure projects and increase revenue.

The City of Melbourne announced its $850.7m draft budget on Tuesday, which will see it collect an extra $30.1m in rates and charges next financial year.

General rates will increase by 3.5 per cent – drawing in a projected $314.6m for the council, while public waste charges will go up by 21.8 per cent, costing residents and businesses a combined $10m.

The council temporarily paused rate rises during the pandemic “to support residents and businesses”, costing it $17m.

The council will “modestly” increase more than 60 per cent of its fees and charges, drawing in $134m next financial year.

With new Sunday and after hours parking charges expected to be enforced from July, the council hopes to rake in more $50m in parking fees and nearly $40m in parking fines.

The City of Melbourne plans to spend $13.4m on ‘footpaths and cycleways’.

The City of Melbourne plans to splash $247.5m on infrastructure, including $60m for the Queen Victoria Market Precinct renewal, $17m for its Greenline Project and $13.4m on “footpaths and cycleways”.

This includes new protected bike lane projects at Flinders St, Royal Parade, Arden St and Macaulay Rd.

It has pledged $12m to “renew roads, footpaths and boost safety”, including $4.2m to fix potholes and improve road surfaces, and will spend $28m for the Kensington Community Aquatic and Recreation Centre redevelopment.

The council will also splash $60.9m on cleaning and safety, $28.2m on events and festivals, $13.4m on libraries and $26.5m on parks, gardens and tree maintenance.

The City of Melbourne will spend $206m on staff and labor costs, with full time wages to increase by 2.8 per cent.

Despite increased spending, the council has plunged further into debt, borrowing $234.8m and recording an underlying deficit of $17.1m, compared to $11.7m last year.

But the council remains confident it will return to surplus in 2025-2026, with the budget forecasting its total operating expenditure to increase by 5.8 per cent to $583.3m.

The 2023/24 budget will undergo community consultation before being considered by council in June.