Currently our community is experiencing financial hardship due to the ongoing cost of living crisis that is hurting families and single people. The genesis of this crisis includes higher energy prices, food costs, rentals, insurance premiums and rates imposed by councils. Compounding this, there is a slew of unfriendly investment taxes imposed by the state government to manage prolific spending.

From a budgetary perspective, every dollar spent by the City of Port Phillip is a dollar taken from the community. Is our money better spent by the City of Port Phillip or alternatively by us within the community on food, electricity, gas, petrol, interest rates, insurance, medical bills, and health? As the late Kerry Packer famously stated “as a government I can tell you you’re not spending it that well that we should be donating extra”- While this was a reference to federal spending it can equally apply to our council as well.

Port Phillip Budget Revenue Grab

The 2025/26 budget poses questions about the ongoing prolificacy of the council to continue their practice of tax and spend and whether we are getting value for money. While the budgeted CoPP rate increase met the 3% cap as mandated by the State Government, this is only part of the revenue story.

Council rates represent approximately 55% of total council revenue. Other revenue like parking fines and waste charges are budgeted to be well in excess of inflation and the rates cap. Parking fines are budgeted to increase by 7.7% and waste charges by 13.0%.

	24/25	25/26	%
Revenue	$000	$000
Rates & Charges	151,351	158,625	4.8%
Parking Fees	20,878	20,920	0.2%
Other Fees	4,185	4,326	3.4%
Parking Fines	21,740	23,422	7.7%
Other User Fees	22,312	24,387	9.3%
Waste Charge	14,917	16,860	13.0%
Other	36,001	38,103	5.8%
Total Revenue	271,384	286,643	5.6%

 

Thus, while inflation was 3% during the year 2024/2025, the rate and fee increase combined have risen to 5.6% – nearly double the inflation rate.

It should also be remembered that Port Phillip rates and charges remain excessive compared to Stonington, Bayside and Glen Eira for a property of the same value (https://ropp.org.au/property-rates-calculator-2). Similarly, staff ratios are considerable higher, along with average staff costs.

Previous attempts to seek expense reductions have been stymied by a cohort of ’tax and spend’ councillors who are reluctant to make inroads into the budget expense or revenue take by council.  To put this in perspective, the council has had a mandated efficiency dividend of a very small 1% of expenditure and even that has been jettisoned in the 2025/2026 budget to an even lesser figure, an extraordinary 0.1%. Let’s rework this last sentence. Out of a budget of $172 million from Rates & Charges and Parking fees, the Council could not even find $200K in efficiencies!

Mornington Shire Sets a Responsible Pathway to Follow

The Mornington Peninsula Shire Council announced earlier this year a $10 million reduction in expenses comprising $5 million in employee costs and $5 million in service efficiencies. In its press release the Mornington Shires stated:

“A comprehensive review was undertaken with input from staff to arrive at a structure that not only ensures financial stability but looks at how Council can improve what we do, and how we do it to be more effective, efficient and customer centred.”

“The realignment significantly streamlines structure with the aim to ensure that leaders are leading and further that leaders are managing an appropriate level of staff.”

Is the City of Port Phillip Failing the Leadership Test?

The current executive team at the CoPP seems to be unable to deliver on anything substantial in terms of expense reduction and with that, rate relief for rate payers and lower fees for residents. The CEO could abrogate his responsibility by throwing these issues back to the councillors (as it appears to be the case) to identify savings and setting of the annual rate increase.  A strong proactive executive however would present council with areas for substantive cost savings and structural efficiency. In effect the CEO would be demonstrably in the driver’s seat and with the executive team be for ever restructuring internally to drive on going efficiency and cost minimisation. Yet we see little change internally and if anything, a fierce protection of the status quo within council.

This Port Phillip executive team from an outsider’s perspective has lost its mojo – Arguably it hasn’t had one for many years. The team appears reactive instead of proactive and held captive by their staff, the public sector union and ‘tax and spend’ Councillors. Worrying is the suggestion of political strings leading to Spring Street, which goes to the very question of the independence of the Council itself. Ultimately the buck stops with the CEO. Is he delivering or just marking time?

Question?

Now ask yourself this question. Would you rather a council like the Shire of Mornington that is delivering costs savings of 3.6% of total budget for 2025/26 or our council with a miniscule 0.1 of 1%? – It does not take a lot to know who out there is doing the job and meeting community expectations, and we also can conclude who is lagging behind.