Greater Dandenong Council’s “responsible” 2024-’25 budget has been criticized by a minority of councillors for lacking “compassion”.
Under the budget endorsed on 24 June, households’ rates and council waste charges will rise to a median $1534.82 – up by 2.53 per cent or $37.87.
It helps to cover a $93 million capital works program including $35 million for the Dandenong Wellbeing Centre aquatic facility, $19.74 million for the Keysborough South Community Hub and $4.99 million for widening Perry Road between Greens Road and Pacific Drive.
Mayor Lana Formoso said it was a responsible, balanced budget, in line with the State Government’s 2.75 per cent rate cap.
“It prioritises service sustainability while recognising economic pressures of both Council and ratepayers.
“It strikes a balance between ensuring Council continues to provide services to support the community, and a capital spending program to provide much needed local infrastructure.”
In opposition, Cr Bob Milkovic said the budget “may be responsible but it’s anything but compassionate”.
He was particularly critical of the fees and charges hikes – up on average by 3.25 per cent.
“Many of our residents … are struggling. To have a budget that only adds fees and charges to every single possible and known council service is not compassionate.”
Also opposing was Cr Tim Dark, who warned that the budget hikes “hurt” residents, with landlords passing on the rises to tenants.
“(Rates) arrears are getting higher and higher and higher. That’s a key sign that residents are struggling to make the council rates.”
He called for an external review of the council to look for cost savings.
Cr Sean O’Reilly said every councillor empathized with residents “doing it tough”.
Under rate capping, the council was collecting less money than its costs, he said.
“Any real reduction in fees, charges, rates would mean we need to cut services.”
Under the council’s hardship policy, ratepayers can apply for a $500 reduction in their rate bill.
The council is set to borrow a projected $75 million to build three major facilities Dandenong Wellbeing Centre (DWC), Keysborough South Community Hub (KSCH) and Dandenong Community Hub (DCH) in the next four years.
The council’s borrowings – to peak at $105 million in three years – and the $60 million cost to service the debts over 10 years have been nominated by the council as among its ongoing financial challenges.
Its indebtedness to rates ratio would remain within “prudential limits”, the council stated in a long-term financial report.
