Council Approves $35.67m Borrowing

Wyndham City Council has approved plans to borrow more than $35 million, authorising one of the largest single-year borrowing programs in the municipality’s history to fund major infrastructure projects.

Councillors have endorsed borrowings of up to $35.67 million as part of the adopted 2025–26 Annual Budget, clearing the final legal hurdle required before loans can be accessed.

The money is earmarked to support the capital works program, covering major assets such as roads, sporting facilities, community infrastructure, drainage and public open space.

Borrowing for capital works is standard practice in local government, particularly in fast-growing cities where infrastructure demand outpaces available cash.

Councils typically fund long-life assets through a mix of cash reserves, developer contributions, government grants and debt, spreading the cost over the life of the asset.

In Wyndham’s case, loans are expected to be sourced through Treasury Corporation Victoria and repaid over time under the council’s long-term financial plan.

The endorsement does not require the full amount to be borrowed immediately but authorises the Chief Executive Officer to enter into borrowing agreements as projects progress.

While borrowing itself is not unusual, the scale of the approval has drawn close attention as it coincides with a series of controversial budget decisions and growing concern about financial assumptions.

Council has faced criticism for allocating $372,000 to a private security patrol trial limited to Truganina and for using spare Point Cook legacy developer contributions to fund projects outside the suburb such as The Big Shed.

The spotlight has also been on committing to a new aquatic and leisure centre in Tarneit with an estimated cost of around $120 million while continuing to refuse Sunday opening hours at Manor Lakes Library.

The borrowing decision also comes as early financial reporting shows pressure building within the operating budget. Council’s first-quarter figures indicate it is tracking toward an $8.3 million operating deficit, compared with the $1 million deficit forecast when the budget was adopted in June.

The deterioration has been driven largely by higher-than-expected staffing costs after anticipated vacancy savings failed to materialise, along with increased depreciation expenses, higher waste volumes leading to larger EPA levies, and lower-than-expected interest income and early capital contributions.

Under local government rules, responsibility for preparing budgets and financial forecasts sits with the administration, overseen by the Chief Executive Officer, with directors, managers and finance staff providing the assumptions that underpin the final numbers.

The borrowing program has also sharpened debate about how money is distributed across Wyndham. Rates are collected citywide based on property values, but capital works spending is not evenly distributed across suburbs in any single year.

Some areas receive major investment while others see limited direct benefit, despite contributing comparable rates. The adopted budget does not include a suburb-by-suburb breakdown comparing rates collected with spending delivered.

Public confidence in the budget process has also been tested. Council spent $14,130 on an outsourced Budget Forum in August designed to engage up to 150 residents, but only 32 people attended, resulting in a cost of about $441 per attendee.

Council later released responses to questions raised and committed to reviewing its engagement approach, with a report on improving the 2026–27 budget process due by October.

With borrowing of more than $35 million now authorised, scrutiny is expected to remain on how quickly debt is taken on, where it is spent, and whether the financial assumptions supporting the budget continue to hold.