City of Melbourne Puts Forward Deficit Budget

The City of Melbourne will potentially go into a deficit for consecutive financial years with its 2023-2024 Budget.

With a total expenditure of $850.7 million, the council has focused on key areas: infrastructure, events and festivals, and cleaning, safety and fairness for its draft Budget. 

But this will also put it in a deficit of $17.1 million with a return to surplus expected in the 2025-26 financial year.

A total of $247.5 million is earmarked for infrastructure spending with an estimate that up to 1000 jobs will be supported by the this.

This includes a boost of $60 million for upgrading infrastructure at the Queen Victoria Market Precinct.

It is hoped that this will help speed up work on the Trader Shed and its new trader and customer facilities, and the Franklin Street streetscape.

The council plans to put $17 million aside for the first stage of the Greenline Project with an expanded riverside promenade at Birrarung Marr park.

A masterplan for the Greenline Project is also due in the 2023-24 financial year.

The council has allocated $28 million to the new Kensington Community Aquatic and Recreation Centre, which will have a newly refurbished pool area, multi-purpose courts, health and wellness areas and a wrap-around cafe.

It is scheduled to open in early 2025.

The Munro library and hub will get $3 million to create the 3100sq m library, family services and community spaces. 

▲ A render of part of the City of Melbourne's Greenline project along the Yarra River.

The council will also put more than $12 million into renewing and maintaining roads and footpaths in almost 80 locations across the city.

This will include $4.2 million to fix and improve road surfaces and $6 million for the Transport Amenity Program to start on the Hawke Street Linear Park. 

The community will be invited to consult on bike lane projects in the coming financial year on Arden Street, Macaulay Road, Royal Parade and Flinders Street. 

“This draft Budget is big on delivery—and we’re looking forward to completing a number of major infrastructure projects during the next 12 months, including an improved Southbank Promenade, a new Brens Pavilion in Royal Park and footpath works on Hardware Lane,” Cr Davydd Griffiths said.

Events scheduled for the coming year include Moomba 70th anniversary and the new Now or Never Festival with $28.2 million allocated. 

More than $50 million has been set aside to maintain parks and green spaces, cut emissions and underpin the Power Melbourne project. 

Melbourne is the fastest-growing capital city in the country. 

The council said the Budget was designed to create growth in Melbourne’s economy to $150 billion gross local product by 2031. 

“This draft Budget is about getting the basics right and doing what matters most to our community—whether it’s fixing our roads, improving safety for all road users or building better facilities,” City of Melbourne’s lord mayor, Sally Capp, said.     

“We’re investing in what matters most to our traders, residents, workers and visitors—making our city cleaner and safer, building better facilities and providing vital services, and boosting business with events and support.”  

Deputy lord mayor Nicholas Reece said spending on services and infrastructure now put the city in a good position to attract and support necessary development as the city kept growing.

“We’re capitalising on our city’s growth—investing in the infrastructure, facilities and services we need to attract even more investment and development into the future, with forecasts showing we’ll assess close to $1 billion of new developments in 2023,” Reece said. 

“As Melbourne continues to grow, these projects will meet the future higher demands for services from locals, while boosting visitor activity for the benefit of our traders.”  

External stakeholders can provide feedback on the draft Budget 2023-24 via the Participate Melbourne website. The deadline for feedback is midnight on June 8, 2023.

Once the Future Melbourne Committee has met to consider community feedback on June 20, the council is due to discuss and adopt the final Budget on June 27, 2023.