Yarra budget absorbs rising costs, delivering major $40m capital works program

Yarra City Council’s 2026–27 budget delivers a major capital works program of $40.3 million while keeping rates within the rate cap of 2.75%.

Yarra City Council Mayor, Cr Stephen Jolly, said the budget focused on the basics, while also helping buffer residents and businesses from the rising costs of living.

“This is a considered budget that allows us to respond to immediate pressures, support the community, and continue investing in Yarra’s future.”

He added that Council was proud that this is achieved with no cuts to services.

“From day one, this Council said we would get back to delivering on the basics – roads, rates and rubbish,” he said.

“This budget puts more than $6.7 million into road renewals, footpaths, kerb and laneway works, more than $1.6 million into cycle infrastructure, and close to $1.3 million into road safety.”

Cr Jolly said the budget also responds to real cost-of-living pressures in the community.

“We know many people are doing it tough, and Council is doing what it can to help,” he said.

“We are capping waste charge increases, despite copping a significant increase in their cost. This is a practical measure that will hopefully help buffer some of the cost pressures facing our community.”

Cr Jolly said residents will also notice improvements in everyday amenity.

“We’re investing in cleaner streets, better-maintained parks and public spaces, and more responsive customer service,” he said.  

Cr Jolly said a budget that delivered for the community and spared them further cost pressures had been made possible by years of disciplined financial management.

“Council’s financial position is stronger today because of the work done under our Financial Sustainability Strategy,” he said.  

“Without those improvements, we would not be able to absorb major cost pressures, including around $3.4 million in additional waste costs, while still investing in the services and infrastructure our community relies on.”

Cr Jolly also said Yarra’s budget process remained hindered by increased State Government cost shifting.

“The reality is, we start every budget around $10 million behind the eight-ball – picking up the State Government’s tab on libraries and crossing supervisors, as well as getting cut off from developer levies.”

Cr Jolly added that all this is happening while Council plans for around 44,000 new dwellings by 2050.

“That means making room for tens of thousands more people while protecting what people love about Yarra,” he said.

“We will not be giving up a square metre of open space. In fact, this budget invests $9.3 million into open space – creating new inclusive open space and improving accessibility to parks, sports fields and playgrounds.

“This is sensible, planned investment that keeps Yarra moving, helps our community through a difficult period, and puts Council on a sound footing for the future.”

Highlights of the 2026-27 budget

• $9.3 million for new and improved open space
• $6.7 million on road, footpath, kerb and laneway renewal
• $1.6 million for bicycle infrastructure
•  $1.2 million for road safety upgrades
•  $4.2 million for stormwater and drainage improvements.
• Continuing the electrification and upgrade of Collingwood Leisure Centre
• Progressing the Richmond Library redevelopment planning
• Renewing equipment across our leisure centres; and
• Designing upgrades for the Alphington Bowls Club and other key facilities.