The start of April through to May in each financial year represents a major workload for Finance (and for Strategic Growth and Advocacy). This includes working on the following:
- 2025-26 Budget
- 10 Year Long Term Financial Plan
- Revenue and Rating Plan
- Council Plan
- Asset Plan
Firstly, I would like to thank the finance team for their exceptional work. I want to acknowledge Kirsten Geri and Maya Mendonca for their outstanding contributions to the Budget and Long-Term Financial Plan. The amount of work that goes into compiling these extensive documents never goes unnoticed and is greatly appreciated.
Councillors and Council Officers have been preparing the 2025-26 Budget which is due to go out to community consultation following the Council Meeting on Monday 12 May 2025. The Budget (along with the above strategic documents) will be on display for 28 days and will be returned to Council for final adoption at the end of June. It has been an extremely challenging Budget with costs increasing significantly, however I am very pleased a balanced budget has been achieved.
We are however confronted with significant strains on our resources to maintain our services and infrastructure at current levels while the costs of delivery continue to outpace funding. In real terms, this means it is very difficult to balance community expectations and deliver in the same way we have in the past. The cap on Council rates also continues to have significant consequences for Council.
Key 2025-26 Budget Statistics
- The Victorian State Government have set the rate cap for the 2025-26 year at 3 per cent, which we will apply to our total rates.
- 66% of Council’s income comes from rates.
- 20% of Council’s income comes from government grants.
- User fees and other income representing a small percentage of the remaining income.
- On the expenditure side – 50% of each $1 we spend on operational costs relates to employee costs – so the cost of labour is by far the biggest driver of the annual increase in costs for Council.
- $118.7 million Capital Works Program - which includes $105.6 million to renew and upgrade the city’s existing $2.6 billion community assets.
- $68.85 million in new borrowings over the next two years to partly fund the Dandenong Wellbeing Centre major project (well within prudential limits).
Dandenong Wellbeing Centre
Council has committed to a significant investment over the next two years for the replacement of the much loved but outdated Dandenong Oasis with the new Dandenong Wellbeing Centre (DWC) – at a total cost of $122.15 million. This is an exciting and significant investment in our community’s health and wellbeing.
Council has sought several funding sources beyond rates, including borrowings, grant funding, contribution income and transfers from internal reserves. To ensure the successful completion of this project, we have made strategic adjustments to our capital program for the coming years. This means funding for other projects and infrastructure will be more competitive in our current funding environment.
While the Council's financial position remains stable for 2025-26, we anticipate ongoing challenges in the coming years. However, I am confident in our ability to navigate these successfully.
Michelle Hansen, Chief Financial Officer