Council is responding to cost-of-living pressures felt in our community with a zero percent rate increase, below the three per cent rate set by the Victorian Government.

The recent impact of cost escalations driven by high inflation has led our new Council to focus on essential services and infrastructure, investing in critical services including improving local roads, footpaths and drainage, as well as our parks and foreshore and local shopping strips.

Council is aiming to deliver on the fundamentals with efficiency and fiscal responsibility, with a focus on maintaining and building the infrastructure used by the community every day.

The budget will be largely funded by rates, with a zero-rate increase in 2025–26.

Bayside receives more than 58% of our revenue from rates. By freezing the increase in rate revenue, Council will forego $3 million in rate revenue in 2025–26, and $35 million over a ten-year period.

This means the rate freeze will impact the 10-year financial plan requiring Council to focus on identifying new revenue sources, to reschedule, rescope, and value engineer capital projects, as well as identify savings from the operational budget. Despite this, our long-term prudent financial management means we are well positioned to continue to provide the services and infrastructure that directly impacts our community.

See “Have any projects been deferred and are not funded in this year’s budget?” below for more information on project impacts.

Although Council has proposed to freeze the increase in rate revenue for general rates and the municipal charge for 2025–26, each ratepayer’s rate notice may increase or decrease compared to the prior year due to a number of contributing factors including the movement in a property’s valuation relative to others, an increase of 1.8% in the waste service charge driven by a 28% increase of the State Government Landfill Levy, and the Emergency Services and Volunteer Fund which Council collects on behalf of the State Government.

Council takes the total rate revenue to be collected and divides it by the total value of all properties in its municipality to calculate the rate in the dollar.

This ensures councils do not receive more money when property values rise.

The rate in the dollar is then multiplied by each property’s value to ensure each ratepayer contributes a fair share.

We will add the municipal charge which is also included in the rate cap. Waste charges and the Emergency Services and Volunteer Fund (which replaces the Fire Services Levy) are then added to your general rates notice to determine the total amount you will pay.

Any ratepayers who are facing financial hardship can contact our Revenue Services Team to discuss their payment options.

The $202.6 million budget will fund over 100 different services to the community and almost a third, $58.6 million will be spent on capital projects improving community infrastructure including:

• Yalukit Willam Nature Reserve Gateway Building $4.4 million
• Yalukit Willam Nature Reserve Wetlands $4.7 million
• Wangara Road Remediation $3.2 million
• Billilla Mansion and precinct restoration $1.8 million
• Hampton foreshore precinct: all access improvements $2.8 million
• Banksia Reserve Sportsground reconstruction $1.7 million
• Dendy Park athletic pavilion renewal $1.0 million

This year’s drainage investment is focused on designing flood mapping, with a significant spend on upgrades planned over the next four years to mitigate flooding risks. We are also increasing our maintenance and cleaning services, including upgrading public toilets along the foreshore.

We are also investing in our activity centres over the next four years, ensuring they remain robust and thriving precincts for employment, shopping and social connection.

Another highlight of the budget is the continued growth of our fully funded Home Care Package service, with an expected increase of 40% in the number of clients during 2025–26. We are also welcoming a $6.8 million increase in funding to support the expansion of our highly regarded aged care services.

Our warm water pool project $25.979 million is being deferred while we undertake an aquatics feasibility study to better understand the needs of our community.

The aquatics strategy will consider both the long term plans for the Sandringham Family Leisure centre and the warm water pool facility.

The money previously allocated towards the project will be distributed across our four-year capital program towards fast tracking the following projects:

• Playground strategy $2.885 million
  • Over four years, starting with Cheltenham Recreation Reserve and including playgrounds in Pennydale, Boss James Reserve, Hampton, Sue Kirkpatrick Park Playground, Beaumaris, Glen Edward Rice Reserve and Dendy Park playgrounds in Brighton.
• Middle Brighton Baths toilet and shower upgrades increase $0.5 million
• Activity Centre renewal $5 million
  • Our activity centres provide a hub for employment, shopping and social connection. We will be strengthening our centres with a $5 million investment of over the next four years to ensure they are robust and thriving.
• Dendy Beach Visitor Management Plan $5.6 million
  • With over a million visitors a year to Dendy Beach, we are spending $5.6 million on upgrading the tourist precinct at Green Point in Brighton over the next four years.
• Dendy Park irrigation $1.5 million

The following recurrent programs have also been removed from the operating budget ($1.183 million) in 2025–26 resulting in a net reduction in operating budget of $11.83 million over 10 years:

• Additional tree planting program ($0.35 million)
• Urban Forest Strategy ($0.172 million)
• Carbon offset scheme ($0.117 million)
• Green money program ($0.044 million)
• New initiative program reduction of ($0.5 million) from $1.5 million to $1 million.

Council is consulting with the Bayside community on the proposed budget between 1 – 21 May. Residents can provide their feedback on the proposed budget via Council’s Have Your Say engagement website via a survey or written statement, or by post to Council during the consultation period. Council is expected to consider community feedback and adopt the budget at its meeting on 17 June 2025.

The Budget 2025-26 is informed by community priorities articulated in the Bayside 2050 Community Vision, aspirations and priorities of Bayside’s new Council and the draft Council Plan. It funds the delivery of projects and programs that Council has committed to deliver, and more than 100 different services to our community.

The proposed Budget 2025-26 was endorsed by Council on 29 April 2029 for community consultation over a three week period from 1 May 2025. Consultation is scheduled to close at 5pm, 21 May 2025 to allow time for feedback to be collated and considered, and amendments made to the proposed Budget, if required. You can provide your feedback via a survey or written statement, or by post to Council during the consultation period.

The opportunity to provide feedback on the proposed Budget will be widely communicated to the community throughout the consultation period via Council’s website and Have Your Say engagement website, as well as digital advertising to reach community members who do not subscribe to Council communications channels. Find out more about how we’re engaging with the community on the budget.

Council will consider a report on community engagement on the Budget on 3 June 2025 and adopting a proposed Annual Budget 2025-26 at its meeting on 17 June 2025. The agenda for this meeting will be available to view on Council’s website from 11 June 2025.

Select the +Subscribe button above and we will notify you when the agenda is published.

Interested community members will also have an opportunity to request to be heard at the Council meeting on 17 June 2025 and speak to Council at the meeting or provide a written statement which will be published in the meeting agenda.

Under the Local Government Act 2020, Council must adopt an annual budget by 30 June.

This surplus represents the residual funds from all revenue sources after funding operating services. The operating surplus is required to fund the capital program.

Operating surpluses continue to decrease from 2026/27 due to increasing depreciation expenditure as major capital projects are finished and commissioned for use as well as reduced interest income as interest rates decline and Council continues to draw down on its cash reserves to fund the capital program.

If you’d like to receive updates, please click the blue ‘subscribe’ button above.