Greater Geelong council has released its draft budget for 2023-24, which would see a number of works and projects scaled back or shelved indefinitely.
Twenty-five capital works projects have been cut in the draft while a number of community programs and events sponsorships have not been renewed.
The Geelong Major Events budget has been reduced by $300,000 to $930,000 and the free second-hour parking trial has been discontinued.
Council plans to introduce a number of new fees around planning and permit applications and city services.
The tone of Wednesday night’s council meeting was heavy as councillors cited inflation and rising costs as the main causes behind what Geelong deputy mayor Anthony Aitken called a necessary “tighten(ing) of the belt”.
“This is the toughest and most challenging budget I’ve ever seen,” Cr Aiken said.
“This budget’s been developed at a period of time where we’re witnessing economic and financial volatility not experienced since the 1991-92 recession.
“We are dealing with inflation, which has just been announced today, of seven per cent, unprecedented cost escalations in our capital program and rate-capping, which is restricting Council’s capacity to raise revenue to match the escalating costs we are facing.
“What we’re dealing with is we don’t have enough money for the services and the projects we would like to deliver.”
While Council had forecast a budget surplus this year, it now faces a deficit of $8 million, which Cr Aitken called a “wake-up call for the administration, the councillors and now… the community”.
“Council has been presented with the forecast recently that…if we just continued in the operating environment that we have at the City of Geelong, we would face a $20 million deficit,” Cr Aitken said.
“Our four-year capital works program needed an additional $135 million just to deliver the same amount of projects we announced last year.
“The reality is, we cannot afford that additional money. To try and do (so) would be irresponsible of the Council, and would (have) a significant impact on the long-term financial sustainability of the Geelong council.
“The budget will be received with disappointment by some members of our community.
“But the pain is trying to be spread across the board, with no section of Council immune to the belt-tightening.”
Cr Aitken said Council had requested a rolling six-month review of its financial position, with an intention to bring back paused projects when possible.
“This procedural mechanism has been established to provide hope to the community and also hope to the Council group to fulfil our responsibilities to the community,” Cr Aitken said.
“I call this ‘the hope clause’ of the 2023-24 budget.”
The proposed budget is available for community feedback until 5pm on Wednesday, May 24 at yoursay.geelongaustralia.com.au/2023-24-BRRP.
All submissions will be considered before the final budget is presented to Council for consideration at its June 27 meeting.
