Greater Dandenong mayor Jim Memeti says the council’s draft 2025-’26 budget recognises residents are “doing it tough”.
The proposed budget – along with a suite of council plans – were approved by councillors to go out to community consultation over coming weeks.
The council proposes a 0.79 per cent hike in rates and waste charges – on average $12 per household. The median bill will be about $1550 – including a $516 waste charge.
The rise for households is well below the State Government’s 3 per cent rate cap.
“We recognise many residents in our community are doing it tough financially and we’re here to support you,” Cr Memeti said.
In opposition, Cr Bob Milkovic said the council was still reaping the full 3 per cent cap – by imposing steeper rates for commercial (up 1.1 per cent) and industrial (up 5.85 per cent) properties,
“While we look like the do-gooders for residential rates, the industrial-commercial – which is really the backbone of Dandenong – is getting slaughtered at the other end.”
He said out of “50 pages” of fees and charges, only two had been reduced. Many had gone up “substantially”, he said.
In defence of the proposed budget, Cr Sean O’Reilly said rates and fees were up, just as “everything else” including “all of Council’s input costs”.
“They only way to resolve rationally what Cr Milkovich is suggesting is if we decrease council revenue in real terms.
“We either have to cut services or take on more debt.”
Thanks to a “strong manufacturing sector”, the council was able to set the state’s lowest residential rates, Cr O’Reilly said.
Meanwhile, Greater Dandenong expects to go into underlying deficit for the first time in 2025-’26 as it commits to its most expensive-ever project the $122.2 million Dandenong Wellbeing Centre (DWC).
On average, $3.5 million deficits per year are projected to continue for three years.
The council expects to take on significant debt and draw down on reserves for the DWC next financial year, borrowing $68 million in the next two years and spending $16.6 million from reserves next year.
It will be spending up to $7.2 million a year to service the loans.
A council report warns that it will need to assess the future of its current services, and to consider asset sales.
Construction materials, fuel and other costs are rising significantly faster than the rate cap, it stated.
Next year, Greater Dandenong’s proposed capital works program totals $119 million – half of which is allocated to DWC ($65.2 million).
Other projects include stage 3 of the Perry Road upgrade ($6.7 million), Dandenong New Art ($4.3 million) and the South East Leisure Building Renewal Program ($2 million).
Community consultation on the proposed budget and council plans closes on 11 June.
The final budget is expected to be considered by councillors on 23 June.
