We have adjusted the 2024–25 surplus result by $6.17 million as this relates to capital grants and open space contributions.

We have adjusted the 2023–24 surplus result by $15.19 million as this relates to capital grants and open space contributions.

Our 2024–25 Budget focuses on investing in high-quality, sustainable and inclusive community services and facilities.  

This includes:

• $29.47 million over the next 4 years for the Glenferrie Oval and Michael Tuck Stand redevelopment
• $21.81 million over the next 3 years for the Kew Library redevelopment
• $2.98 million to finalise our Tree Canopy Strategy and implement the actions
• $439,773 to upgrade the Columbia Street laneway and progress the Glenferrie Road streetscape concept designs.

Investments into preserving and increasing green space

We are investing in our sportsgrounds, which includes:

• $3 million for sportsground reconstruction program
• $197,000 for minor sportsground improvements
• $673,000 for the Sportsground Infrastructure Renewal Program

We understand there is limited open space in our community for recreation. We will invest $800,000 each year into our Open Space Acquisition Fund, which allows us to purchase additional open space when there is an opportunity.

Investments into sustainability

We have committed $1 million to continue delivering a range of initiatives to reduce Council's emissions and meet other climate-related targets in our Climate Action Plan.

Investments into maintaining our infrastructure

We will invest:

• $6.6 million for drainage renewal
• $2.4 million for footpath and cycleway renewal
• $14.1 million for road renewal
• $14 million for 8 other community building renewal works and minor works across many other properties under Council stewardship.

Investments into services 

We will invest:

• $10.7 million to provide library services 7 days a week
• $9.9 million on health and wellbeing services, including immunisation, youth and recreation services
• $23.6 million for parks and gardens, biodiversity and street trees maintenance
• $3.9 million on arts and cultural services and events
• $13 million for planning, development and building controls
• $13.8 million for maintenance of the city’s infrastructure, including buildings, drainage, footpaths, roads and shopping centres.

External influences

Victorian Government

The Victorian Government influence on our budget includes: 

• the Victorian Government’s rate cap increase of 2.75%.
• the Victorian Government waste levy is expected to increase from $129.27 to $132.76 per tonne in 2024–25. The waste levy changes are part of the Victorian Government’s Recycling Victoria package. This is a 10-year action plan to encourage more recycling and reduce waste going to landfill.
• the Fire Services Property Levy that we collect for the Victorian Government.
• ongoing cost shifting. This happens when a local government provides a service to the community on behalf of the Victorian or Australian Government. Over time, the cost for providing the service goes up, but the funding a local government receives doesn’t match it.

Grant funding

We’ve received capital works grant funding of $1.22 million, with the most significant being $1.05 million from the Australian Government for the Roads to Recovery Program funding covering roads pavement renewal works.

Internal influences

Internal influences on our budget include projects that aren’t finished or haven’t started yet. This can be because of planning issues, weather delays or a longer consultation with the community. 

Employee costs are another internal influence. These are mostly driven by Council’s Enterprise Agreement. We have included an annual increase of 2.75% for all costs related to employees, such as wages, Work Cover and superannuation. In 2024–25 the compulsory Superannuation Guarantee Scheme (SGC) will also increase from 11% to 11.50%.

Waste collection costs will also increase in 2023–24 by roughly 9.4%. This is linked directly to the cost of providing the waste services.

In this section, we list the 7 themes of the Boroondara Community Plan and the services that fall under each of these themes. We detail the amount that each service costs, the amount we will make in revenue and the total net cost of that service.

Theme 1 – Community, Services and Facilities

Theme 2 – Parks and Green Spaces

Theme 3 – The Environment

Waste and Recycling

Expenditure: $29,434,000

Revenue: $1,441,000

Net cost: $27,993,000

Theme 4 – Neighbourhood Character and Heritage

Theme 5 – Moving Around

Theme 6 – Local Economy

Theme 7 – Governance and Leadership

Summary of our financial position

This summary provides important information about our:

• rate increase
• operating result
• service levels
• cash and investments
• capital works
• financial sustainability.

The following graphs show the 2023–24 forecast actual, which is marked with an F before the date.

The graphs also show the budget for 2024–25, 2025–26, 2026–27 and 2027–28. These are marked with a B before the date. 

Rate percentage increases

In 2024–25, rates will increase by 2.75%.

Total rates and charges (including waste and interest) increased to $220.40 million (4.40%), including $900,000 generated from supplementary rates on new and redeveloped properties. Special rates and charges levied through special rate schemes will total $1.55 million.

The Victorian Government introduced a cap on rate increases from 2016–17. The cap for 2024–25 has been set at 2.75% by the Minister for Local Government. Future years are estimated using Department of Treasury and Finance forecasts of the consumer price index.

In 2024–25 waste service charges will increase on average by 9.4%. The Victorian Government waste levy is expected to increase from $129.27 to $132.76 per tonne in 2024–25.

You can find out more on our Rates 2024–25 page.

Our financial statements include projections for the 4 years ending 30 June 2028. 

They are prepared in line with the Local Government Act 2020 and the Local Government (Planning and Reporting) Regulations 2020. 

Find out about our current and projected performance for services and finance. 

We are required to report on our performance against a common set of indicators. These indicators are in Schedule 4 of the Local Government (Planning and Reporting) Regulations 2020. They give a useful analysis of our financial position and performance. 

For example, we looked at the satisfaction level of our community with how Council makes and implements decisions. We measured this satisfaction level by asking our community for a rating out of 100 for our consultation and engagement efforts.

We also looked at performance against other indicators, such as:

• decision making
• participation
• waste diversion
• health and safety
• loans and borrowings
• level of debt
• population
• disadvantage
• workforce turnover.

We will report results against these indicators in the Performance Statement of our Annual Report.

We provide a range of services to the Boroondara community. To pay for these services, we either charge a fee to use them or we apply a levy.

Our Pricing Policy makes sure that we set fees in line with activities to support community objectives. These are activities that we wouldn't normally do, however, the Victorian or Australian Government has requested and funded them to meet a certain objective. 

When we set fees and charges, we think about: 

• people’s ability to pay
• equity in how services are subsidised
• community service obligations
• legal or service agreement limitations, such as building permits or statutory planning fees
• results from benchmarking of similar services.

Our fees and charges also might change throughout the 2024–25 year. However, if fees are set by the Victorian Government, we aren’t able to change them. 

Waste management fees

We charge waste management fees to pay for:

• the waste to landfill service
• the food organics and green organics waste service 
• the recycling service
• hard-waste collection
• operating the Riversdale Road Transfer Station
• post closure management of the Clayton Landfill
• delivering street sweeping services
• public place waste and recycling services
• bin renewal 
• disposing of electronic waste.

We also charge waste management fees to pay for waste collection at:

• public parks
• gardens
• sportsgrounds
• community buildings. 

In our 2024–25 Budget, we are proposing an average increase of 8.4% for waste charges in Boroondara, which factors in the Victorian Government waste levy. This levy is part of the Victorian Government's Recycling Victoria package, which is a 10-year action plan to encourage more recycling and reduce waste to landfill.

The Victorian Government waste levy is $129.27 per tonne in 2024–25. 

Waste bin charges for 2024–25

Rate percentage increases

The Local Government Act 2020 requires us to have a Revenue and Rating Plan. This is a plan for how we will generate income to deliver the Council Plan, programs and services, and capital works commitments for the next 4 years.

Our rates and charges are an important source of revenue. They make up 79% of the total revenue we receive each year. 

The Minister for Local Government announced that the average property rate cap for 2024–25 will rise by 2.75%. We won’t be asking for any changes to this rate cap. 

Future years are estimated using the Department of Treasury and Finance forecasts of the consumer price index. However, we are taking a conservative approach to the rate cap and set this at 2.5% for future years.

Forecast of our rates and charges

The table below is an overview of our rates and charges. It shows what we forecast in 2023–24 compared to the actual 2024–25 budget. 

Rates and property value

The Valuer General of Victoria took over the rateable property general valuation process on 1 July 2018. It also changed this process to happen every year instead of every 2 years. 

Under the Local Government Act 1989, local governments can increase rate revenue through valuations of properties. The Valuer General of Victoria works out and certifies the Capital Improved Value (CIV) of properties. We then use the CIV to work out the rates. 

The way rates are charged is the same for residential and business properties.

There will be an increase in the rate in the dollar paid by ratepayers. This will be an increase from 0.12864561 cents in the dollar to 0.12826249 cents in the dollar. 

A property in Boroondara at the median residential valuation in 2023 was valued at $1,600,000 with a general rate of $2,058.33. The new median valuation for 2023, according to the Valuer General of Victoria, is $1,650,000 and now attracts a general rate of $2,116.33. This is an increase in 2023–24 of $58 per year or $1.12 per week. 

It’s important to note that when a revaluation is carried out, the total rate revenue that we receive doesn’t change. We don’t make any extra revenue. 

A revaluation can change how the rates between properties are allocated. If the value of a property is higher than the average value for other properties, that property receives a higher rate increase compared to the general rate increase for other properties. 

However, if the value of a property changes to become less than average, that property receives a lower rate increase compared to the general rate increase for other properties. 

The following tables summarise the valuation changes between the 2023 and 2024 general revaluations for all property types including analysis by suburb.

All property types

Analysis by suburbs – all property types 

Operating grants

Operating grants from the Victorian and Australian Government help us deliver services to ratepayers. Operating grants can be either:

• recurrent, meaning they are received each year
• non-recurrent, meaning they are once-off or short term. 

For 2024–25, we have budgeted a decrease of 28.6% or $2.65 million, compared to the 2023–24 forecast.

There is a $84,000 decrease in recurrent operating grants. This is because of a reduction in:

• Family and Children related grant funding associated with Maternal and Child Health services.
• Building Support funding for cladding enforcement.

This is offset by the Victorian Local Government Grants Commission (VLGGC) bringing forward 100% or $5.35 million of the 2023–24 allocation to the 2022–23 financial year, compared to a 50% allocation in 2024–25 brought forward to 2023–24.

There is a $2.57 million decrease of non-recurrent operating grants. This is because of a reduction in:

• Streetscapes and transport grants associated with the North East Link and removal of the Union road level crossing.
• Family and Children related grant funding associated with kindergartens throughout the municipality.
• Digitalisation related grant funding to digitalise planning files.
• Graffiti Prevention and Removal related grant funding.
• COVID-19 related grant funding to distribute Rapid Antigen Tests (RAT) throughout the municipality.

After adjusting for the Victorian Local Government Grants Commission, the total for operating grants is expected to decrease by 20.5%. The decrease in operating grants and subsidies shows that the trend of grant income is not keeping up with the spending required to deliver services to the community. As a result, there is an increasing financial burden on Council and our ratepayers.

Capital grants

Capital grants from the Victorian and Australian Government and community sources help us fund the Capital Works Program. 
The amount of capital grants we receive each year can change a lot depending on the type of works in the Capital Works Program.

Capital grants can be either:

• recurrent, meaning they are received each year
• non-recurrent, meaning they are once off or short term. 

For 2024–25, we have budgeted $1.22 million for capital grants funding. This is a decrease in capital grant funding of $8.5 million compared to 2023–24.

 The most significant grants include:

• $1.05 million from the Australian Government for the Roads to Recovery Program covering roads pavement renewal works.
• $125,000 for Electronic Scoreboard and Portable Player Shelters at Ashburton Park from Department of Jobs, Skills, Industry and Regions.
• $50,000 for Ashburton Bowls Club Shade upgrades from Department of Jobs, Skills, Industry and Regions.
   

Our Priority Projects program provides funding for short-term projects or pilot initiatives. This allows us to deliver on important issues for the community, while making sure that project funding doesn’t become part of the recurrent operating budget. It is another example of our commitment to financial sustainability, transparency and accountability.

In 2024–25, we have planned Priority Projects for the coming year and provided details for projects over the next 3 years. 

The Priority Projects budget for 2024–25 includes projects that support all of our strategic objectives.

Borrowings history

During the 2012–13 financial year, we borrowed $29 million to fund major building works. The borrowings were at a fixed interest rate for 10 years and we were due to repay this in full in 2022–23. However, during the 2022–23 financial year, we reviewed our existing loan portfolio and refinanced the rest of this loan for another 10 years. 

We expect to repay all existing borrowings by 2033.

Existing borrowings

During the 2023–24 year, we made $8.12 million in principal repayments on existing borrowings. This means that on 30 June 2024, our total borrowings will be $77.22 million. The projected cost of servicing these borrowings is $8.46 million during 2024–25.

Future borrowing strategy

Our borrowing strategy is to pay off existing debt over time so that we can look at new borrowings for significant infrastructure projects for the community. This strategy allows us to invest in new infrastructure while paying off our debts.

We will look at different borrowing strategies for each area of planned borrowings as they become due.

Future proposed borrowings 

The following table sets out our future proposed borrowings, based on our forecast position on 30 June 2024.

Statement of borrowings 

Lease of land

Under section 115 of the Local Government Act 2020, we have the power to lease any land to any person for a term of 50 years or less. However, this is still subject to any other act and where section 116 of the Local Government Act 2020 applies. If we lease any land to any person subject to any exceptions, reservations, covenants and conditions, it must comply with this section.

We must include any proposal to lease land in a financial year in the budget, where the lease is for one year or more and:

• the rent for any period of the lease is $100,000 or more a year
• the current market rental value of the land is $100,000 or more a year
• for 10 years or more.

If we propose to lease land (subject to the 3 criteria noted above) and that was not included as a proposal in the budget, we must complete a community engagement process in line with our community engagement policy before entering into the lease.

The proposed community leases set out in the table are in line with our Council Assets – Leasing and Licensing Policy 2017 and our Boroondara Community Plan 2021–31.

Our in-house Senior Valuer provides us with market rental valuations. All rentals proposed to be charged are in line with our Council Assets – Leasing and Licensing Policy.