Stonnington's 2025/26 Budget sets out a $235 million operating program focused on delivering the things that matter to our community. It has been developed to address growing financial pressures while continuing to deliver high-quality services, maintain key infrastructure and plan for the future.
Adopted on Monday 30 June, this Budget takes a forward-looking approach as we navigate the particular economic challenges faced by Council in 2025 and beyond, including increasing operational costs and insurance challenges, rate capping and the impact of decisions from other levels of government.
The State government's recent amendment to the Congestion Levy catchment area will result in Stonnington being required to pay a new annual levy of $4.09 million to the State, commencing 1 January 2026. This has had a very significant impact on the Budget and future financial planning.
As a result, things are tight, but with stringent financial management and some tough decisions we've managed to make it work, achieving a $7.04 million operating surplus for 2025-26. We've also taken a close look at our spending to find ways to save money while trying to minimise the impact on our community. This includes $2.8 million in savings by putting some community events on hold including Glow, reducing community grants, and making changes to our organisational structure.
Our capital works program of $46 million, has a strong focus on asset renewal and investment in community priorities. Of this, $27.7 million is allocated to renewing existing infrastructure, such as roads, footpaths, bridges, buildings and drainage systems.
There is $4 million of new borrowings in this years Budget, and Council will continue to responsibly manage its existing debt and maintain a strong financial position through the strategic use of reserves. A total of $15.54 million will be transferred into reserves, including $6 million into Council's Future Fund, which ensures we have capacity to fund future infrastructure needs and community priorities.
A modest rate increase, in line with the approved 3% rate cap set by State government, has been approved to meet the ongoing financial sustainability objectives of Stonnington. When combined with Council's new 2025-26 waste charges, this reflects just a 1.85% (excluding Emergency Services and Volunteers Fund) increase for average property rates and charges. That's 75 cents increase per property per week including the waste charge.
Mayor of Stonnington, Cr Melina Sehr, said the budget was developed with a clear focus on protecting essential services while planning for the city's future.
"This budget reflects difficult but necessary choices, shaped by financial realities and guided by community priorities. It strikes a careful balance between living within our means and continuing to deliver the high-quality services and outcomes our community expects."
Delivering on what matters most: The highlights
Through early engagement, feedback on the draft budget, and the work of our People's Panel, we heard what matters most: clean and safe streets, reliable services, sustainable transport, open space, and smart investment in our local infrastructure.
Further feedback from the recent Draft Budget consultation focussed on the need for family friendly events, and in response to this the final Budget has recommended that Christmas carols at Central Park is reinstated, funded through a reduction to Sunset Sounds.
Keeping Stonnington Moving
- continued investment in core infrastructure such as roads, footpaths, bridges and drainage works ($13.91 million)
- improvement to our drainage network by installing new infrastructure in flood-prone areas ($0.90 million)
- installation of emergency back-up generator at Malvern Town Hall to support essential services and Emergency Relief Centre operations ($0.65 million)
Investing in Parks and Open Spaces
- ·open space improvements to the Gardiners Creek trail - shared user path including the construction of Talbot Habitat Park with raingardens ($3.00 million)
- completion of the masterplan implementation at Percy Treyvaud Memorial Park including oval reconstruction and upgraded lighting ($2.50 million)
- expansion of our open space footprint in Prahran with the creation of a pedestrian connection through to Izett Street Pocket Park ($0.30 million)
- refresh of playground equipment at McArthur playground and Connell Park ($0.36 million)
A Safe, Welcoming and Vibrant City
- Of the $4.38 million allocated to the Chapel Street Precinct Improvement Plan, over $3.00 million comes from continued operational investment, with a further $1.10 million of 2024/25 Chapel Street Special Rate Scheme funding reallocated to deliver the plan.
Highlights from our operating budget include:
- implementation of a Community Safety and Chapel Street Taskforce ($0.10 million)
- continued funding in the Stonnington Zero partnership to reduce rough sleeping homelessness and support people to find long-term housing ($0.127 million)
- continued funding for the Salvation Army Street Team to support vulnerable people in the Chapel Street precinct on Friday and Saturday nights ($0.09 million)
- a new outreach program delivered in partnership with community agency partners to support vulnerable individuals during the day in the Chapel Street Precinct ($0.05 million)
Renewing Our Historical Facilities and Assets
- critical infrastructure renewal at Council aquatic centres including spa upgrades at Harold Holt Swim Centre ($0.37 million)
- renewal of floodlights at sportsgrounds in Malvern ($0.50 million)
- renewal of Malvern Valley Golf Course assets including irrigation and pathways ($0.40 million)
- essential roof works and remediation of stormwater for the Prahran Market ($3.50 million)
- commencement of redevelopment activity including tenancy conversion works for the Prahran Market ($0.55 million)
- air conditioning upgrades at key community facilities ($0.75 million)
- accessibility upgrades and clubroom refurbishment at East Malvern Tennis Centre ($0.50 million)
Climate Smart City
- implementation of our Climate Emergency Action Plan to reduce Council and community emissions (twenty-four activities totalling $3.31 million)
- expansion of our Food and Organic (FOGO) recycling service ($0.31 million)
Tech for Tomorrow
- completion of a multi-year initiative to modernise Council's core digital infrastructure ($1.65 million capital, $3.20 million expense)
Funding Stonnington Tomorrow
Looking beyond this year's Budget, there is a bigger conversation to be had. Like many Councils across Victoria, Stonnington is facing growing financial pressures due to the challenges outlined above. Our rates are also some of the lowest in the state, as they have been for a long time. Stonnington's average rate is lower than 71 of the 79 Councils in Victoria.
Year by year, pressure has been building, and we've had to make some difficult choices including cutting costs, increasing fees and scaling back services where we can.
The reduction of our events calendar for this Budget is an example this. However, continuing to cut back is not a sustainable plan if we want to maintain the high-quality services and facilities that make Stonnington a great place to live, work and play.
This brings us to a critical point in time. The conversation about key aspects of our financial roadmap, Funding Stonnington Tomorrow, has begun.
This isn't just about how we generate revenue. It's also about how:
- We deliver services in smarter and more efficient ways
- We manage and use Council-owned assets to better serve the community
- We prioritise funding to meet evolving needs and challenges
- We advocate to other levels of government for increased financial flexibility + autonomy
