City of Greater Geelong reveals first budget surplus in two years

City of Greater Geelong councillors have backed a draft budget, which includes a rates cap and $4m for the Northern Aquatic and Community Hub. Here’s where other funds are likely to go.

The City of Greater Geelong has unveiled a “break-even budget” as it prepares to record a surplus for the first time in two years.

The projected underlying operating surplus – of just $107,000 – comes after the city recorded a $17.8m deficit in the 2019-20 financial year, a $9.3m deficit last financial year and a forecast surplus of $9.3m in the current financial year.

Councillors on Tuesday night endorsed the Draft Proposed Budget 2022-23 for public exhibition, with the city encouraging residents to submit their feedback by May 24.

It’s proposed rates will be capped at 1.75 per cent under the state government’s rate cap.

Rate revenue makes up 46 per cent of the city’s total comprehensive incomes and 66 per cent of its operating revenue.

Under the cap, it’s expected average residential rates would rise by $60.66 or 4.5 per cent to $1397 in the 2022-23 financial year.

Geelong councillor Anthony Aitken says council is proud to have brought the budget back to a break-even position. Picture: Glenn Ferguson

Under the proposal $206.6m has been allocated to the city’s capital works program in a bid to encourage further private investment and to cater to the region’s continued population growth.

Total new borrowings for 2022-23 are expected to be $71.3m – $14.8m of which is carried over from previous years.

By the end of next financial year the city is expected to have $197.7m in loans.

Finance portfolio chairman councillor Anthony Aitken said council was proud to have brought the budget back to a break-even position.

“Continued deficits affect our borrowings, capital spend and ability to respond to community needs,” Cr Aitken said.

“Delivering a break-even budget straight after Covid-19, and in a rate-capping environment of 1.75 per cent, is a major financial achievement for council, while maintaining significant commitments and meeting the demands the continued population growth is placing on us.”

The budget also provides further funding for sustainability-led initiatives, such as a $4m allocation to power the Northern Aquatic and Community Hub with renewable energy and $3.5m to complete the bulk fit-out of LED street lighting with smart control technology.

Major capital works expenses planned for the coming financial year include $96.5m on buildings, $45.9m on road, footpaths, kerbs and drains, $30.7m on parks, open space and leisure, $8.4m on plants and equipment and $7.9m on roadside infrastructure and furniture.

The cost of services delivered to the community for the 2022-23 year is expected to increase by $25.4m on last financial year to $352.9m.

Deputy Mayor Trent Sullivan said the proposed budget struck the right balance in catering to the growth of the region and ensuring assets were upgraded in established communities.

“Council has made a strategic decision to increase the amount of funds we use on revitalising older infrastructure across Greater Geelong,” he said. “We have also honoured the commitments we unveiled last year, and added further projects that align with council’s sustainability goals.”

Facilities council is considering selling off revealed

A pair of CBD carparks would be sold off by City Hall under a budget proposal that would see up to $52m of assets sold off to drive down the city’s debt.

The plan, outlined in the City of Greater Geelong’s draft proposed 2022-23 budget, would see council sell off its multi-level Civic Car Park along Gheringhap St and the Busport Car Park along Brougham St, which contains 196 carparks and office space.

COGG assets to be sold off

The Civic Car Park consists of 503 commercial car parks and four small retail stores spread over 4062.7 square metres. Council estimates it has land acquisition and development costs of $2,602,977.

Under the plan, the sale would include a purchase condition to ensure the carparking spaces are retained for at least 10 years.

If approved, council would also sell 1.561 hectares of land at 17 Reynolds Rd in Belmont which is currently home to the private Oz Tenpin Bowling, a council operated maternal health centre and carparks.

COGG assets to be sold off

Council also intends to include a condition of purchase guaranteeing a 20-year lease for the Maternal Health Centre, so the service would not be impacted.

The budget also outlines a plan to sell land at 200 Princes Hwy in Corio, which currently contains a KFC store and carparks.

The site is commercially leased until 2029.

Council said it plans to subdivide approximately 1,570m2 from the Stead Park reserve and rezone it to a Commercial 2 Zone. If rezoned that land would be sold, enabling the commercial use to continue.

Finance Portfolio Chair, Councillor Anthony Aitken said sales were needed to secure the city’s economic future.

At Tuesday night’s council meeting Cr Aitken said the city proposed to sell assets with a current value of up to $52m.

“To repair our council budget in Geelong we have to sell a historic level of assets and we have identified some properties that don’t need to be under community ownership,” Cr Aitken said.

COGG assets to be sold off

“The program will help us tackle our debt levels and reduce the need to borrow even more money in coming years, without impacting on residents’ rates.

“We have to live within our means in Geelong.

“I encourage the community to give us feedback on the identified properties.

“If there is strong negative feedback we will review the assets identified and any other aspects of the Proposed Budget they are interested in.”

Council has raised $32 million in recent years by selling other surplus sites, such as the Old Geelong Gaol and the Old Geelong Post Office.

Submissions are open until May 24. For more information visit yoursay.geelongaustralia.com.au/CAFP.

Originally published as City of Greater Geelong reveals first budget surplus in two years