Draft Budget 2026/27 Puts Financial Sustainability First

Informed by over 90 community submissions, the proposed budget responds to rising cost pressures, inflation, and ongoing government cost‑shifting while continuing to invest in the services, infrastructure, and places our residents value.

"We believe this is a financially responsible and balanced budget that allows Council to support our growing community by responding quickly to global uncertainty, while continuing to care for our assets and deliver essential services for our community," Mayor Alex Makin said.

"We encourage our community to review the draft Plan and share their feedback before Council considers adopting it on 24 June" Cr Makin said.

What's proposed in the draft Budget 2026/27

$120.5 million worth of capital works and initiatives to maintain, grow and improve services and facilities including:

• $26 million on parks, open space and streetscapes including:
• continued investment in new open space including the Sandridge Recreation Precinct in Fishermans Bend ($0.53 million) and new open space in Lakeside ($0.45 million)
• further planning and development for places and precincts including the implementation of precinct planning for Balaclava, Ripponlea and Lakeside/Domain areas with streetscape and open space works, additional greening at Acland Street Plaza and place planning for Bay Street ($0.36 million)
• Elwood Foreshore Masterplan ($4.5 million)
• major upgrade of the St Kilda Adventure Playground ($2.3 million) and renewals and upgrades to keep local playgrounds safe and accessible ($2.1 million)
• design and delivery of new dog off-leash park at Fennell Reserve in Port Melbourne ($0.44 million).
• $20 million investment in essential infrastructure including:
  • road renewals and upgrades ($3.6 million)
  • kerb and gutter renewals ($0.88 million)
  • pram crossing upgrades ($0.39 million)
  • footpath renewals and expansion ($1.6 million), including footpaths expansion in Fishermans Bend to improve safety, accessibility and the public realm
  • bike infrastructure ($4.5 million) including the Inkerman Street Safe Travel Corridor
  • drainage, flood and water management ($1.6 million) including Water Urban Sensitive Design
  • Broadway Bridge upgrade ($2.4 million).
• $50 million on buildings improvements including:
  • South Melbourne Town Hall upgrade and redevelopment ($18.3 million) including contributions from tenant
  • redevelopment of six Children Centres ($9.5 million,)
  • South Melbourne Market ($2.6 million)
  • community services infrastructure at Fishermans Bend ($11 million).

The draft budget also proposes $75,000 in additional funding for Crime Prevention Through Environmental Design initiatives to go with $0.45 million for Public Place CCTV and $2.4 million in efficiency savings.

The final Community Infrastructure Plan will guide how Council plans, invests in, and delivers community infrastructure such as libraries, community centres and health services to meet the needs of its growing and changing population.

Rates, waste and financial support

Over the last five years, rates have gone up by 11.8 per cent, while CPI has risen by more than 20.3 per cent, creating an enforced efficiency measure that Council has been able to address through strong financial management.

The proposed budget 2026/27 includes an average rate rise of 2.75 per cent in line with the Victorian Government's rate cap, which is lower than forecast inflation of 4.9 per cent.

Rising costs significantly outstripping rates growth are contributing to a forecast $86 million cumulative funding gap over the next decade, without intervention. Council has a financial strategy, however, to close this gap which includes continuing efficiency savings, prioritisation of expenditure and strong financial management.

The average $49 increase for the combined residential rates and waste charge, together with a proposed three per cent increase in fees and charges, is crucial to fund services, maintenance and capital projects and help offset the heightened cost pressures driven by the conflict in the Middle East.

The Default Waste Charge is proposed to increase by $47.70 to $278 with $25.20 of the increase directly reflecting the inclusion of dumped rubbish and public litter bins (which has been removed from general rates). The other $22.50 has been driven by the renewal of the waste collection contract, a six per cent increase in the landfill levy and inflation on waste expenditure. The increase reflects the true cost recovery for a service which provides the community with:

• kerbside collections for waste, recycling, glass and cardboard
• bookable hard waste collection
• a mattress collection service
• communal waste hubs
• collection of dumped rubbish
• litter bins in streets and parks
• bin replacements
• customer service support to process waste service requests.

Port Phillip will continue to be among a small number of councils offering a pensioner rates rebate, increasing to up to $242. Support measures such as one‑off rate waivers for extreme financial hardship, rates deferment for self‑funded retirees and temporary payment plans will remain available for eligible ratepayers.

No new debt is proposed, aside from existing finance lease liabilities under Council's financing strategy.

Have your say