City of Melbourne wages bill to rise to $180.2m amid hiring spree

Ratepayers will be stung for the City of Melbourne’s “tone deaf” salary blowout, with its bureaucrats’ whopping paychecks revealed.

Lord Mayor Sally Capp and Deputy Lord Mayor Nicholas Reece. Picture: Jason Edwards

The City of Melbourne’s wages bill will jump by more than $18 million this year as the council insists it needs more staff to boost the CBD’s recovery.

Ratepayers will fork out about $180.2 million for employee costs in 2021-22 — up almost 11 per cent on the previous year, the council’s draft budget reveals.

As scores of businesses close their doors due to the pandemic, it’s expected the bill will blow out to nearly $194 million within three years.

Ratepayers Victoria reacted angrily to the revelations, saying the council was “tone deaf” and “out of touch”.

An extra 107 staff will be hired over the next year for a total of 1494, similar to the population of Apollo Bay.

The average annual cost per staff member will be $120,480.

City of Melbourne chief Justin Hanney is paid $500,000 a year. Picture: Aaron Francis

Lord Mayor Sally Capp receives an allowance of $200,870 plus superannuation, Deputy Lord Mayor Nicholas Reece gets $100,434 plus super, while ordinary councillors are paid $47,165 and super.

But Town Hall’s top earner is chief executive Justin Hanney with a package of about $500,000.

In 2021-22, more than a quarter of council staff will work in community and city services (up 40); 267 in city economy and activation (up 40); 233 in finance and corporate (up 10); 192 in strategy, planning and climate change (up 21); and 111 in city design (up two).

Ratepayers Victoria president Dean Hurlston said there was no reason to increase staffing levels and costs.

“At a time when this council is tone deaf over drug-injecting rooms, this budget further demonstrates how out of touch it really has become,” he said.

“Residents and ratepayers deserve value for money, not ambitious and wasteful resourcing.

“Traders and residents no longer feel heard, the City of Melbourne needs to focus firmly on the lived experience of people, not theories and woke agendas.”

Mr Hanney said the $789.9 million draft budget was the city’s biggest ever, and additional staff were required to deliver it.

“The 7.6 per cent staff increase noted in the draft budget is a direct result of lower staffing levels associated with Covid-19 in 2020, which included secondments to the Victorian government,” he said.

“It also reflects significant investments in areas including capital works, events, cleaning and city revitalisation.

“Our bold, city-shaping budget is designed to accelerate our recovery, and it will be more important than ever in light of this new lockdown.”

Staff costs are due to rise by only 1.8 per cent in 2022-23.

The budget allows for almost $5 million in rates discounts, while $12 million is expected in efficiency savings through better contract management and procurement.

But consultant costs will rise a massive 56 per cent to $17.4 million in 2021-22, in order to “support strategic initiatives execution and record-breaking infrastructure spend program”.

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