Council rates frozen as COVID-19 sends city budget into red for the first time in 30 years
The city council’s budget has revealed Town Hall is facing a $101 million hit from the coronavirus pandemic, sliding into the red for the first time in thirty years. But there’s welcome news for residents whose rates will be frozen next year.
VIC News
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A freeze on rates announced by City of Melbourne will put pressure on other councils to also keep their bills at current levels.
Melbourne Lord Mayor Sally Capp signalled the freeze as the city reeled from the impact of the coronavirus which is sending the city’s annual budget $57 million into the red, the first deficit in 30 years.
The state government is unlikely to offer direct financial support even for rural councils which have less revenue to fall back on.
Victoria’s councils will announce their draft budgets in coming weeks but inner-city Yarra, Moreland and Port Phillip have already flagged that residents will pay 2 per cent more.
Municipal Association of Victoria president Coral Ross said not every Victorian council would be able to offer a rates freeze to their residents.
“Council activities and income streams have been directly impacted by COVID-19 and they do not have the same revenue raising capacity as state or federal governments,’’ Cr Ross said.
Local Government Minister Adem Somyurek said councils had the power to provide discounts, exemptions and waivers for hardship on rates and charges for ratepayers and businesses to support their communities.
Opposition spokesman Tim Smith called on the state government to ensure other councils also froze their rates.
“It’s terrific that the City of Melbourne is leading the way,’’ he said.
The pandemic was delivering a $101 million hit to Melbourne’s bottom line.
Residential and commercial ratepayers will have their bills frozen at this year’s levels as will other fees including parking charges.
Cr Capp described the plan as a “recovery budget”.
Melbourne’s budget for 2020-2021 includes:
— $168.5 million in infrastructure spending, including $45 million for the first phase of the Queen Victoria Market redevelopment and $12.8 million towards the revamp of Southbank Boulevard.
— No increases to charges at recreational centres, child care facilities and libraries.
— Residential rates revenue will spike by almost 6 per cent to a record $128.5 million, mostly off the back of new apartments.
— The budget deficit is forecast to be wiped out in two years.
“We are making a record $50 million investment in rate relief and stimulus packages to ensure our economy recovers as quickly as possible,’’ Cr Capp said.
Pedestrian numbers in the CBD slumped in recent months as workers, shoppers and tourists stayed away because of the pandemic.
Cr Capp said the infrastructure spending was to help kickstart the city economy.
“When the city does well, the state does well,’’ she said.
Deputy Lord Mayor Arron Wood said no redundancies were expected because of the COVID-19 impact and that teams had adapted to changes taking on different roles such as cleaning and maintenance.
“No services will be compromised by this pandemic,’’ he said.
The main project being deferred is the revamp of the CH1 building, formerly a Commonwealth Bank branch, on Bourke St.
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