Geelong to splash $8m on Commonwealth Games

The City of Greater Geelong will spend nearly $8 million on the 2026 Commonwealth Games despite an $8 million budget deficit in the current financial year.

In a draft budget released on Wednesday, the city said the two-week sporting event presents both an opportunity and challenge as council grapples with mounting financial pressure.

It comes after the city's finance portfolio chair Anthony Aitken said Geelong could not afford to chip in to the Games due to a multimillion-dollar budget deficit.

The event will be held across parts of regional Victoria including Geelong, Bendigo, Ballarat and Gippsland.

The council has forecast an operating surplus of $1.28m in 2023/24 after an $8m loss in 2022/23, in its proposed 2023/24 to 2026/27 budget.

It plans to increase rates bills and put multiple community projects on hold.

The average residential rates will increase by $80 or 5.8 per cent, with an average bill of $1480 from the next financial year.

Commercial ratepayers face an average bill of $4937.

The council also plans to put at least 25 council projects on hold due to $130m in cost escalations.

Construction was set to begin on a fenced dog park at Aldershot Reserve this year, along with a range of other projects totalling more than $80m, however they have now been paused.

Council plans to spend $616m on various infrastructure projects over four years.

"It is about being financially responsible to set the City up for the future," Greater Geelong Mayor Trent Sullivan said.

"In a challenging economic climate we've worked hard to budget for an operating surplus, which is in line with our 10-year plan and will enable us to keep debt in check."

Acting chief executive Kaarina Phyland said the council was grappling with the cost of living crisis.

"Like many other governments and organisations, the City of Greater Geelong is under heavy financial pressure," Ms Phyland said.

"We will continue to deliver core services, invest strongly in new facilities, and maintain our existing assets. But to balance our books we have had to concentrate on what we can afford, and that has meant some really tough decisions for the Council."