City of Melbourne residents can expect to pay increased rates for the first time since the COVID-19 pandemic, helping to fund the council's proposed redevelopment of the northern bank of the Yarra River, graffiti cleaning and new parklands.
It's the first major increase in rates after two years of relief during the COVID-19 pandemic.
The draft budget, released today, passes on a 1.75 per cent rate increase, in line with the Victorian government's rate cap.
"Rates are fundamental to keep our city running and operational," said Cr Philip Le Liu, who heads up the council's finance portfolio.
He said rates discounts of up to $247 would be available for seniors and pensioners.
The draft budget also introduces a new annual waste charge for ratepayers, something that the council said was just a new way of reporting waste charges, which were previously included in rates and not an extra cost.
The bottom line for the $838 million budget is still in the red because the council is forecasting a deficit of $11.3 million, with the budget expected to return to surplus in 2023-24.
Big spend on Yarra vision
Melbourne Lord Mayor Sally Capp said $40 million would be invested in the council's flagship 'Greenline' project.
The project aims to transform the northern bank of the Yarra River and eventually create a continuous pathway from Birrarung Marr to the Bolte Bridge.
Ms Capp said the first-year works would improve more than 500 metres along the river's edge, including the development of floating wetlands.
"This will bring amazing biodiversity to our river and our riverbank, including insects and birds," she said.
Graffiti cleaning, safety and increased parking revenue
Elsewhere, the council continues to invest in the Queen Victoria Market renewal project, with an extra $50 million for its next stage.
Nearly $30 million will also be spent on graffiti cleaning and city safety, including extra lighting.
Ms Capp said police data showed Melbourne was safer than ever but that making sure everyone feels it was a council priority.
"Feedback that we have from visitors, residents and students is that we have got to keep it a top priority and keep our city safe," she said.
The city will spend a further $50 million on maintaining public parks and gardens, and creating extra green space in North Melbourne and Southbank.
It is hoping to recoup some of its spending through $47 million in extra revenue from parking fines and fees, as visitor numbers to the city increase.
"We anticipate people coming back and, actually, we want people to come back to the city, because the city is so much better when there are more people in it," Cr Le Liu said.
Residents and businesses will have one month to provide feedback on the draft budget before it goes to a council vote in late June.
