Port Phillip councillors will meet on Monday night to consider adopting a $317.4 million budget that lifts rates by 2.75 per cent, sharply increases waste charges and funds a $123.1 million project portfolio across the municipality.
Council is set to rake in a record-smashing $317.4 million next year — and deliver a $37.5 million operating surplus.
The 2026/27 budget shows revenue leaping $20.9 million, or 7.1 per cent, while spending crawls up just 1.8 per cent to $279.9 million.
The windfall is powered by $165.6 million in rates and charges, including a 2.75 per cent average rate rise, plus $27.7 million in statutory fees and fines — with parking fines alone tipped to haul in $23.1 million.
User fees add another $47.2 million, including $24.3 million from parking meters and permits, while rentals, interest and other income pump in $30.5 million.
Council says the books leave a modest $750,000 cash buffer, but the headline is impossible to miss: record income, rising rates, parking revenue pouring in — and Port Phillip milking it in while tightening the purse strings.
Waste charges up more than 20%
The default waste charge will rise 20.7 per cent from $230.30 to $278, reflecting a new waste contract, landfill levy increases and the transfer of dumped rubbish and litter bin collection costs from general rates to the waste charge. Net waste service charges are budgeted at $20.65 million, compared with $16.99 million in 2025/26 and $15.07 million in 2024/25.
Port Phillip is also proposing a 3 per cent general increase in fees and charges, while retaining targeted assistance. The Council-funded pensioner rebate would increase by $12 to $242, and hardship waivers would rise to a maximum of $800.
The budget papers point to a tougher operating environment, citing rate capping, high inflation, cost shifting from other levels of government, higher construction costs and reduced open space contributions from build-to-rent developments. Council estimates it has absorbed an 8.6 per cent gap between inflation and rate caps over five budgets, while the 10-year financial plan identifies an $88 million funding gap before savings and other measures.
About $120M in project portfolio
The capital program rises again after a lower 2025/26 year, with $109.4 million proposed for capital projects and $13.7 million for operating projects. Major items include South Melbourne Town Hall, South Melbourne Market, St Kilda Pier landside works, the Elwood Masterplan, childcare centre upgrades, St Kilda Adventure Playground, Fishermans Bend community infrastructure, public toilets, road renewals, bike and pedestrian works, foreshore assets and the St Kilda Marina transition.
Community feedback has also changed the final package. Officers recommend adding $135,000 after consultation: $70,000 for the National Theatre facade and restroom project, $60,000 for St Kilda Police and Citizens Youth Club transitional youth programs, and $5,000 to examine year-round accessible beaches.
Earlier allocations include $75,000 for reactive crime prevention through environmental design, $40,000 for the Fishermans Bend Business Forum, $75,000 for transport safety at Barak Road and Howe Parade, and $10,000 for the 2026 Special Olympics National Games.
Consultation was smaller than the previous year’s community panel work. Ninety-two people contributed early budget ideas between November and February, and 45 people or groups responded to the draft budget in May. Key themes included safety, maintenance, public spaces, local business vitality, community facilities, environment, arts, access, housing and governance.
If adopted, the budget will take effect from 1 July, with rate notices to follow in August.
