Yarra spends more on staff costs compared to rival councils but still wants to sting residents with bin tax

The City of Yarra spends more of its rates revenue on staff costs than any other inner-city council, while residents prepare to be hit with a bin tax.

The City of Yarra spends more rates revenue on its staff than any other inner-city council. Picture: NCA NewsWire

The bloated administration at the City of Yarra spends more of its rates revenue on staff costs than any other inner-city Melbourne council.

The wage bill for the council’s 828 employees sucks up 83 per cent of rates revenue, while neighbouring Boroondara’s staff costs account for 52 per cent, Merri-bek 58 and Stonnington 61 per cent.

The financial revelations come as mayor Cr Claudia Nguyen made her first public comment on the proposed waste levy – or bin tax – for households.

The bin tax issue will be a test for Yarra Mayor Claudia Nguyen.

“This is just a proposal at this stage and no decision has been made,’’ Cr Nguyen told the Herald Sun.

Financial analysis of council accounts also revealed Yarra’s management costs have blown out to $10.6m a year, higher than eight other comparable councils such the $7.4m bill at Darebin next door.

Businessman and Yarra resident Paul Jackson said the council had seen an excessive growth in employee costs.

“They are not addressing the underlying issue which is financial mismanagement and they’re asking ratepayers to bail them out,’’ he said.

A big turnout of residents is expected at Richmond Town Hall for the ‘bin tax’ meeting.

The cost excess is despite Yarra crying poor and asking ratepayers to pay an annual bin tax, a plan aimed to rake in tens of millions of dollars a year.

The waste levy is set to be up to $115 in the first year, but residents fear once the charge is introduced it will be used to gouge ratepayers in years to come.

Yarra has in the past embedded waste costs into household rates but now wants to separate and create a new levy, one not limited by the rate cap.

The City of Yarra has said waste collection and disposal costs have soared.

The council report said the move was needed otherwise vital services could be cut.

“Separating the waste charge from general rates is a critical component to ensuring council’s future financial sustainability is not eroded further,’’ the report said.

“Long-term financial sustainability is important if council is to continue to deliver the services and programs expected by the community.’’

But another council report revealed that its bottom line improved sharply in the first half of the current financial year.

“Council has achieved a year-to-date operating surplus of $81.2m, which is $15.1m ahead of the year-to-date budget,’’ it said.

Bringing in paid security guards for a council meeting? Why on earth would a council hire security for a bin tax meeting? It is more likely that the public need protecting from the council than the other way around.
Are we going to suffer a security guard tax next?@IanRoyallpic.twitter.com/dwSvcvzg2h

— Yarra Residents Collective (@yarraresidents) March 8, 2023

The waste levy will be discussed at a meeting on Tuesday night at Richmond Town Hall where private security guards will be on duty.

Three councillors – Stephen Jolly, Bridgid O’Brien and Michael Glynatsis – will seek to defer the bin tax proposal.

Monitor Yehudi Blacher was sent in during 2022 to performance manage the Yarra administration and identified financial instability.