News / Council

Council on guard for budget risks from fuel crisis 

Mark Phillips

Wednesday, April 22, 2026

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Merri-bek Council is “alert but not alarmed” about the potential impact of the global fuel crisis on next year’s budget.  

The council will monitor the volatile economic conditions over coming months but has not altered its plans since the beginning of the crisis caused by the US-Israel war on Iran almost two months ago. 

The one concession has been to set aside more than $326,000 in next year’s budget as a contingency against rising fuel prices and other economic uncertainty.  

Comprising just 0.13% of total council expenditure, the funds will be on standby as a buffer should costs rise more than expected.  

Councillors approved the draft budget at a special meeting last week but it has been overshadowed by the economic anxiety created by the war and the blockade of oil from the Strait of Hormuz. 

Mayor Nat Abboud said at this stage there was no reason for panic. 

“What we’re doing even if it’s only in our heads is remembering to stay nimble,” she said. 

“But at the moment it’s like alert but not alarmed and we think probably first or second quarter [next financial year] that’s when we might need to say is there something we need to respond to here or are we good? … It feels a bit uncertain but it doesn’t feel like we’re in the middle of a cost of living crisis, it feels like we’re at the beginning of one so we just have to be wait and see.” 

In her introduction to the 2026-27 budget, acting Merri-bek chief executive officer Sue Vujcevic said the council was closely monitoring the economic environment. 

“Any sustained volatility in fuel prices will place pressure on the cost to deliver services to the community,” she said. 

“Due to these factors, the assumptions underpinning the draft and the adopted budget may lead to further changes.  

“Council will respond as required through the budget: ensuring ongoing financial stability, while maintaining essential service delivery to support the community.” 

Abboud said the contingency of $326,517 could be used to cover unforseen cost increases but was not the only option. 

“Some of the things that are in that budget are related to design and they could be deferred for a year if the rubber really hits the road in that space,” she said. 

“We’re watching what is happening with our tenders, whether they’re coming in on budget or under budget or over budget and making sure that we consider that things might cost more money than we expect.” 

The council is forecasting it will finish this financial year with an underlying operating surplus (which excludes capital and developer contributions) of $18.2 million, falling to $12.6 million next year. 

Revenue is forecast to grow in 2026-27 by 5.9% to $301.9 million while expenditure will increase by 3.6% to $259.6 million. Rates and charges will make up 70.8% of revenue. 

Income from rates (including property revaluations) will grow by 4.7% to $181.5 million, notwithstanding the state government cap on general rates of 2.75% next year.  

That means the average residential property owner will pay about $1961 next year, almost unchanged from this year. 

Spending on capital works will increase by 33% to $91.6 million next year, of which $53.3 million is new funding. 

Key capital projects include the start of construction of the $12.6 million Brunswick Early Years Hub in Albert Street due for completion in 2028; detailed design of the $60 million Coburg library and piazza so construction can begin in 2028 for delivery by 2030; $10.6 million for roads and car park renewal and maintenance; and $5.8 million for transport infrastructure including footpaths and bicycle paths. 

The five-year capital works program anticipates $8.8 million being spent on expanding the gym at the Brunswick Baths; $1.2 million redeveloping a building on the north-west corner of Balam Balam Place; and $1.7 million on a “refresh” and new meeting rooms at the Brunswick Library.  

An operating projects program of $3.2 million will include $900,000 over three years for solar or thermal grants for low-income earners, $600,000 over three years for a homelessness outreach program, and an extra $175,000 in grants to local artists next year. 

Standard kerbside waste service charges will increase in 2026-27 by 9.2% or $33.70 to a total annual cost of $367.43. The actual cost to the council of collecting household waste will rise by 12.6% due mainly to a state government levy and higher fuel costs. 

Revenue from fines and fees will rise by 0.6% to $20 million, while the council is forecasting its total employee costs will increase by 4.4% to $124.1 million. The latter is well short of the 10% increase being sought in the current industrial dispute by members of the Australian Services Union to catch up on inflation. 

The council will set aside $23.7 million in its Significant Projects Reserve to fund future projects, including the Coburg library and piazza project.  

The budget includes grants totalling $267,394 for CERES  in Brunswick East which includes a capital grant, in the first of a five-year grant agreement with the environment park which struck financial difficulties last year. 

The council has also allocated $400,000 to six community projects including $80,000 for sunshades over playgrounds and $60,000 to subsidise rehearsal and art production spaces around the city. 

Community feedback on the proposed budget is open until May 21. 

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