We have long advocated for rates relief, but it is only possible if five Councillors vote for rates relief.  Council is set to increase rates and charges yet again in 2025.

Council is seeking your feedback about the draft Plan for Port Phillip and budget 2025-35. You can provide comment in two ways

• You have until 18 May 2025 to submit online in the link: https://haveyoursay.portphillip.vic.gov.au/planforportphillip
• Speak at a Special Council Meeting on Tuesday 13 May see Agenda: https://portphillip.infocouncil.biz/Open/2025/05/ORD_13052025_AGN_AT_EXTRA.PDF

 

Our thoughts on the Council Plan and Budget

Community Doing it Tough – Our community is experiencing financial hardship due to the ongoing cost of living crisis that is hurting all families and single people.

Calls for a rates freeze for the last four years have been falling on deaf ears.  Bayside Council have announced a rates freeze for their budget. Why can’t the City of Port Phillip?

Council revenues are projected to increase by 5.6%, which is nearly double the rate of inflation or the Consumer Price Index of 3.0%.

Port Phillip rates and charges remain excessive compared to Stonington, Bayside and Glen Eira for a property of the same value. Source: https://ropp.org.au/property-rates-calculator/

Waste Charge increase of 13% is not justified when the cost of living has increased by only 3%. The waste charge should be capped at 3.0%

Rate cap has protected ratepayers – The Budget papers reveal that Council would have taken an additional $137 million over 9 years from ratepayers and businesses if it was not constrained by the Victorian Government’s rate capping in 2016/17.  The council’s goal do not appear to be aligned with residents.

Expenditure is excessive – The proposed expenditure for the coming year is budgeted to climb (5.2%) is excessive when compared with the anticipated inflation level (3.0%). Port Phillip spends significantly more than its neighbouring local government areas while providing similar services. Port Phillip has forecasted in 2024-25 to spend approximately:

• $100M more than Bayside.
• $50M more than Glen Eira
• $40M more than Stonnington

Employment costs represent 55% of budgeted expenses and an additional 22 staff are earmarked in this budget bringing total staff numbers to 842. A headcount freeze would save an estimated $2.5 million and provide for a rates and charges freeze based on an average cost of $110,000 per employee.

We reject rate rises when community satisfaction is declining – The results of the Community Satisfaction survey commissioned by the City of Port Phillip all point to a council with a performance and confidence deficit.  We are not getting value for money. Our community have seen declines in the following metrics:

• Overall Performance
• Community consultation
• Value for money
• Waste Management
• Council Direction and
• Customer Service.

The City of Port Phillip’s performance KPIs have declined over the past 10 years, and the Council Plan contains no measures to reverse the trend. Refer to image of the Councils declining metrics since 2015.

Source: https://www.portphillip.vic.gov.au/about-the-council/governance-performance-and-advocacy/performance-reporting/community-satisfaction-survey

 

Community dissatisfaction – Council does not appear to be interested nor motivated to improve its declining community satisfaction. It is concerning that the Council Plan ignores the results of the Council’s own survey and does not seem to prioritise improving its declining service delivery.

Conclusion

We call for rates and charges to be increased by no more than 2.0%, which represents the CPI increase of 3.0% less an efficiency dividend of 1% of total expenditure.

Council should as a priority aim to improve its performance and efficiency.

Council should stop duplicating federal and state government responsibilities such as affordable housing and homelessness which are a State and Federal responsibility.

Council should instigate a staffing freeze and through natural attrition re-engineer departments to reflect real efficiency gain.