Budget 2026/27 is adopted

This is the second budget of our four-year Plan for Port Phillip, which guides everything we do as a council.

Mayor Alex Makin said careful financial management allowed Council to rollout initiatives including a significant capital works program to maintain, grow and improve services and facilities - despite rising costs and continuing high inflation, on-going rate capping challenges and government cost-shifting.

“This budget was informed by several rounds of community consultation, including before the draft budget was prepared. The result is a financially responsible, sustainable budget, embedding $2.4 million in efficiency savings, which allows us to continue to care for our assets and community,” Cr Makin said.

“From parks and infrastructure to community facilities and safety, this budget supports a liveable and connected Port Phillip.”

Budget 2026/27 includes an average rate rise of 2.75 per cent in line with the Victorian Government’s rate cap, which is lower than forecast inflation of 4.9 per cent. The budget is debt-free apart from existing leases which are part of the financing strategy. 

The $123.1 million in capital works and initiatives include:

• $26 million on parks, open space and streetscapes, including $530,000 towards the Sandridge Recreation Precinct in Fishermans Bend and new open space in Lakeside ($450,000)
• fencing for the off-leash dog park at Fennell Reserve in Port Melbourne ($440,000) and planning for further off-leash dog parks in Fishermans Bend
• footpath constructions in Fishermans Bend to improve walkability and sustainable transport
• further planning and development for places and precincts including precinct planning for Balaclava, Ripponlea and Lakeside/Domain areas with streetscape and open space works, additional greening at Acland Street Plaza, and place planning for Bay Street ($360,000)
• $20 million investment in essential infrastructure including road renewals and upgrades ($3.6 million) and footpath renewals and expansion ($1.6 million)
• drainage, flood and water management ($1.6 million) including Water Urban Sensitive Design
• building improvements totalling $50 million for projects such as the South Melbourne Town Hall restoration and redevelopment of six Children’s Centres ($9.5 million).

Further developing the Community Infrastructure Plan, with a particular emphasis on Domain, Lakeside and Fishermans Bend, will guide how Council plans, invests in and delivers community infrastructure such as libraries, community centres and health services to meet the needs of its growing and changing population.

Items included after the draft Budget was released:

• $70,000 for the National Theatre to unlock an additional $50,000 in funding from other sources to support the façade restoration and restroom upgrade 
• $60,000 for the St Kilda Police and Citizens Youth Club’s youth program
• Up to $15,000 to trial expanding our Accessible Beaches program to operate year-round in 2026/27 at Port Melbourne Beach and a report on the cost and further work that may be required to extend the program to South Melbourne and Sandridge Beaches. 

Continuation of funding initiated over 2025/26 from the Community Panel, Community Safety Roundtable and Community Safety Plan for activities including:

• addressing loneliness and isolation and promoting social connection
• combatting discrimination, racism and antisemitism
• additional funding for Crime Prevention Through Environmental Design ($75,000)
• more local laws patrols and $450,000 for additional public place CCTV
• greater investment in local arts and events (funded through a reprioritisation of St Kilda Festival funds).

Fees and charges

Due to financial pressures such as rising costs significantly outstripping rates growth and the continuing uncertain economic climate, additional revenue is needed to supplement rates income. This includes a general three per cent increase in fees and charges, unless it makes sense to vary.

Targeted support includes:

Continuing the council-funded pensioner rates rebate up to $242, or a maximum of 50 per cent, when combined with the Victorian Government rebate.

There’s continued funding to support both affordable housing and local organisations assisting vulnerable members of our diverse community. This includes up to $60,000 to support local food security responses, with a focus on strengthening food coordination and improved integration between local food relief providers.

Waste and recycling

The default waste charge will rise $47.70 to $278, with $25.20 of this reflecting the inclusion of dumped rubbish and public litter bins (which have been removed from general rates). The other $22.50 has been driven by the renewal of the waste collection contract, a six per cent increase in the Victorian Government’s landfill levy and inflation driving up waste expenditure.

The increase reflects the true cost recovery for a service which provides the community with:
•    kerbside collections for waste, recycling, glass and cardboard
•    bookable hard waste collection and a mattress collection service
•    communal waste hubs
•    collection of dumped rubbish
•    litter bins in streets and parks
•    bin replacements
•    customer service support to process waste service requests. 

To learn more about the budget go to: Council meeting catchup - 29 June 2026 - City of Port Phillip