Guide to Council Plan and Budget 2023/24

Budget highlights at a glance

Thanks to everyone who provided feedback on the Council Plan and Budget 2023/24. Here are some budget highlights at a glance:

• We're rolling out our FOGO services to multi-unit dwellings. We will also have communal hubs for glass and FOGO.
• We will invest additional funds over the next 10 years in projects such as the Elwood Foreshore Facilities Project, South Melbourne Market Connect, and Fishermans Bend infrastructure.
• We will provide an extra $50,000 for Early Education Grants, totaling $206,000, to help vulnerable families access childcare.
• We are extending the Launch Housing funding agreement for two more years, providing $110,000 per year for outreach services to assist people sleeping rough. We will also allocate $40,000 for increased food relief in Port Phillip.
• The existing business support under the Economic Recovery Package will continue until June 2025, including the activation of public spaces.
• The rebate for pensioner rates will increase by five percent to $210. Port Phillip is one of the few councils offering this rebate.
• Most fees and charges will increase by 3.75 percent. Some may be higher to reflect reasonable user pays charges, while others will stay the same or be reduced to support those who need it most or encourage further use. The 3.75 percent increase is lower than the forecasted 4.5 percent inflation.
• We will provide funding to improve access for girls and women at sporting facilities, including J L Murphy and Lagoon Reserve, in accordance with our Fair Access Policy.
• We will continue to invest in implementing our sustainability strategy, Act and Adapt, and take action to address the Climate Emergency. This includes creating a Climate Emergency Plan, reducing the environmental impact of our buildings and operations, and supporting the community to take action.
• We will continue our annual Greening Port Phillip Program and develop a new Urban Forest Strategy and Street Tree Planting Program in 2023/24.
• Projects from the Public Space Strategy, such as the Moubray Street Community Park and Graham Street Overpass Skatepark, will begin construction in 2023/24.
• We have no debt, except for some finance lease liabilities that are part of our financing strategy.

What is the Council Plan and Budget?

The Council Plan 2021-2031 is our 10-year strategic roadmap that guides everything we do for our community. It provides a solid foundation for the continued rollout of community projects, services, and initiatives. Every year, in consultation with the community, we review and revise the Council Plan and we create a budget to assist us in meeting our strategic objectives.

What to expect for 2023/24

Following extensive community consultation, the proposed amendments for Year Three (2023/24) of the Council Plan and Budget were officially endorsed on 20 June 2023. Some key amendments include changes to:

• rates
• waste charges
• the Cultural Development Fund
• performance indicators
• initiatives

Thank you to everyone who contributed to the review and revision of the 2023/24 Council Plan and Budget, including the many community members who took the time to have their say. Please see our Have Your Say page for the full engagement report.

Key changes for 2023/24

Changes to your rates

In recognition of cost-of-living pressures facing our community we have decided to increase rates by 2.8 per cent which is lower than the rates cap of 3.5 per cent and well under the expected 4.5 per cent inflation rate.

This decision will provide ongoing financial relief to our residents as future rates rises will be based on the lower 2.8 per cent figure.

This is the first time we have proposed an increase below the rates cap since the Victorian Government introduced rates capping in 2016/17.

The lowered rate amount means that we will collect $900,000 less from residents in 2023/24 and an accumulated $11 million less over the next 10 years.

Council will subside this money on behalf of the community. Rather than funding this shortfall through service cuts, we will put less into our reserve fund as a buffer for known and unexpected challenges over the next decade.

Changes to waste charges

The cost of waste is increasing due to increases in the state landfill levy and in FOGO services. To meet these increasing costs, we propose to increase our default waste charge from $176.20 to $198.20.

For homes using the kerbside FOGO collection service, this cost increase will be offset by a decrease in the cost of their FOGO bin.

Single-unit dwellings

Last year, as part of the Don't Waste It! strategy, we delivered approximately 14,600 kerbside FOGO bins in from January 2023.

In last year's budget, owners of eligible single-unit dwellings were charged an additional $88.10 for the convenience of kerbside FOGO collection. To ensure that we provide fair outcomes that reflect the various levels of service and cost between single-unit and multi-unit dwellings, we propose to keep this charge, but reduce it to $66.00.

This would bring the total cost of waste charges for eligible single-unit dwellings to $264.20, which is an overall reduction of $0.10 in your waste charges.

Multi-unit dwellings

This year we're also continuing our FOGO rollout with services to be delivered to multi-unit dwellings (for example, units or apartments) starting in mid-2023.

Unlike those living in single-unit dwellings, who have the convenience of a kerbside collection, multi-unit dwellings will be provided with a shared common service which is more like a communal service. We're funding this service from the default waste charge. This means we would not introduce a separate charge for FOGO collection for multi-unit dwellings.

This demonstrates our commitment to fairness and reflects the various levels of convenience and cost between single-unit and multi-unit dwellings.

Residential car park spaces and storage areas

Previously, some apartment owners were charged a fee for their apartment, as well as an additional amount for their apartment's residential car park space or storage area.

We're removing the fee for car park spaces or storage areas that are tied to a dwelling.

Commercial car park spaces and storage areas

We're removing the waste charge for commercial car park spaces* or storage areas, and instead charge a small amount for incidental waste that may be generated through commercial activities.

* This does not apply to commercial car park operators who will incur the default waste charge.

Changes to the Cultural Development Fund

Last year, Council requested that a cost review be undertaken to identify options for ongoing cost reductions. The review was set up to provide evidence-based cost reduction options for Council to consider in the 2023/24 budget.

Following the review, it was recommended that the Cultural Development Fund be reduced from $187,000 to $100,000. After hearing your feedback, we decided to reduce it from $187,000 to $125,000 from 1 July 2023.

Changes to the Council's performance indicators

Council indicators provide a snapshot of our annual performance. They are reviewed annually to ensure targets are realistic and that descriptions are clear.

The following additional indicators have been included in the 2023/24 Council Plan and Budget to bolster our performance for the community:

• Percentage of investment in fossil-free institutions.
• Street cleaning audit compliance.
• Number of Council Plan initiatives that are on track.
• Percentage of audit actions completed on time.
• Proportion of projects on track.

We have also removed the indicator 'Council decisions made at meetings open to the public' as it has been shown to result in similar outcomes to the indicator 'Council decisions made at meetings closed to the public'.

Changes to initiatives

We have added six new initiatives to the 2023/24 Council Plan and Budget, they include:

1. Commercial Precincts Footpath Upgrades (part of the Footpath Renewal Program) - This is a $500,000 a year program of renewals and upgrades of footpaths in and around high street areas, to support trading and pedestrian foot traffic. The program's first year will include a consultation, design, and minor beautification budget of $100,000.
2. St Kilda Strategic Plan Implementation - $380,000 to be allocated over four years to implement short-term recommendations of the plan, with a focus on actions that relate to strategic planning. $100,000 has been included in 2023/24.
3. Footpath Trading Guidelines Review - $80,000 to review and update Council's Footpath Trading Guidelines (2017) in line with the endorsement of the Outdoor Trading (dining) Policy in November 2022 and the current development of a new Local Law 2023.
4. Elwood Foreshore Facilities Development Stage two and three - new stages added to ensure future funding is allocated to the works identified in the masterplan.
5. South Melbourne Market Project Connect - A $17 million investment over 10 years to futureproof the Market, ensuring it continues to provide a safe, enjoyable and accessible experience for the community. The program will connect and align with the renewal and compliance program of works already underway at the Market. This project will focus on improving public space around the Market, reduce congestion, improve visitor experience and provide increased connection with the precinct.
6. Conservation of South African War Memorial - $268,000 for the conservation treatment of the memorial in Alfred Square St Kilda, which is protected under the Heritage Victoria Act 2017. $92,000 has been included in 2023/24 for investigation and design.