Residents across Port Phillip are feeling the pressure of rising living costs, yet our council continues to increase rates and expand spending well beyond inflation. The Residents of Port Phillip (RoPP) has reviewed the City of Port Phillip’s financial position and the draft 2026–27 Budget — and the conclusion is clear: a rates freeze is not only possible, but also responsible.

A Strong Financial Position

Council’s own reports currently show a $16.2 million operating surplus and a forecast $12.1 million cash surplus by June 2026. Delivering a rates freeze would require just $4.4 million in savings — less than 2% of annual expenditure. For an organisation with a $274 million budget, this is entirely achievable.

Port Phillip Residents Pay Far More Than Their Neighbours

A comparison with nearby councils shows Port Phillip ratepayers are paying 24% to 58% more for similar properties. The average home in Port Phillip now attracts $3,306 in rates — hundreds more than Bayside, Glen Eira or Stonnington. At a time when families are tightening their belts, council should be doing the same. Compare your rates and charges here https://ropp.org.au/property-rates-calculator-2/

Spending Growth Outpacing Inflation

Over the past three years, both revenue and expenditure have grown significantly faster than CPI. This reflects a “tax and spend” approach that is out of step with community expectations and the financial realities facing households.

A Top‑Heavy and Expensive Staffing Structure

Port Phillip has the highest staff‑to‑population ratio among neighbouring councils and an unusually large proportion of senior, highly paid staff. 42% of employees are in Grade 7/8 or above — far higher than Stonnington, Bayside or Glen Eira. Employee costs now make up 55% of the entire budget.

A staffing freeze, natural attrition, and a long‑overdue organisational restructure could deliver meaningful savings without reducing frontline services.

Time for Structural Reform

Other councils are already taking action. Mornington Peninsula Shire recently removed 48 senior roles, saving more than $10 million per year. Port Phillip could achieve similar efficiencies by modernising its structure, embracing technology, and focusing on core services.

Putting Residents First

RoPP is calling on councillors to:

• Freeze rates and charges for 2026–27
• Review staffing levels and organisational structure
• Benchmark spending against neighbouring councils
• Reduce non‑core expenditure
• Use technology, including AI, to improve efficiency

Residents deserve a council that manages money responsibly, prioritises essential services, and recognises the financial pressures facing households.

A rates freeze is not a luxury — it’s a fair and achievable step toward restoring balance and rebuilding trust.

If you are interested in reading our full Submission on the budget, please see RoPP 2026-27 Council Plan and Budget Submission.