The Reece Police: Council budget delivers green wins and financial reset

The City of Melbourne’s 2025–26 draft budget has handed down a welcome result for residents of North and West Melbourne and Kensington, with significant investments in parks and community infrastructure – and a clear shift towards tighter fiscal management under the new-look council.

The headline act for the city’s north-west is a $40 million commitment over four years to redevelop the North Melbourne Community Centre, which will become a state-of-the-art facility at the heart of the growing Macaulay precinct.

Further west, the council has earmarked funds to deliver two new pocket parks – one currently under way on Roden St in West Melbourne and the other on Chapman St in North Melbourne – under its Pocket Park Program. In Kensington, construction will soon begin on Chelmsford Street Park, transforming more than 3600sqm into a new green space for the community.

The green wins are part of a broader $44.3 million investment in open space and greening initiatives across the municipality.

“This budget delivers on our promise of a better Melbourne,” Lord Mayor Nick Reece said. “We’re continuing to invest in the services and infrastructure our community deserves, including new parks and gardens, and cost-of-living relief.”

The community infrastructure program is accompanied by a newfound emphasis on financial stability, led by Cr Owen Guest, a recent addition to the council and head of the Finance, Governance and Risk portfolio. Cr Guest – who holds a doctorate in economics and finance – has been credited with spearheading a financial turnaround.

“For the first time in five years, we’re delivering back-to-back surpluses,” Cr Guest said. “We’ve found savings of $15 million from last year’s deficit and are on track to return to a debt-free position within seven years. That’s a big shift from where we were.”

The council’s debt had previously been projected to peak at $275 million in 2025–26. That figure has now been revised down to $212 million, with further reductions forecast over the coming years. Cr Guest described this shift as “the start of unwinding unsustainable COVID-era expenditures” and a step towards restoring trust and transparency in city finances.

Cr Reece backed the approach, noting that “while we’re making every dollar count, we continue to deliver the services and infrastructure our community needs.”

The $732.4 million budget includes a $154 million capital works program, with $18 million allocated to finish stage one of Greenline along the Yarra, as well as upgrades to the Queen Victoria Market precinct ($35 million), and the opening of a new library in Southbank ($5.3 million).

Public safety also received a major funding boost, with the city announcing a record $4.5 million investment. This includes $2.1 million to expand the Safe City Camera Program with support from the state government and $2 million for additional on-street security patrols, with around 10 new safety guards expected to be deployed.

“This is about making Melbourne cleaner, safer and more welcoming – 24 hours a day,” Cr Reece said.

The Lord Mayor’s pledge to expand the city’s private security presence reflects one of the more contentious features of the draft budget – even before the review of its current trial has concluded.

The existing program, which pairs two security guards with city local laws officers, remains under evaluation. But with a further $2 million allocated in the budget, Cr Reece has confirmed the council will press ahead with recruiting additional security personnel.

Exactly how this expanded safety presence will operate remains unclear. Cr Reece was left scrambling for clarity when questioned on the powers that these new guards would hold.

“They will have the power to make a citizen’s arrest,” he said, adding that they would be “well trained in managing hostile situations” and would offer “a very visible safety presence.”

Pressed on what distinguished these guards from any other citizen – since the power to make a citizen’s arrest is not unique – Cr Reece acknowledged they would not have any special legal authority.

He emphasised that it marked the first time in the city’s 180-year history that Melbourne would deploy such a program. “This is a major new safety presence on our streets and I’m confident it will make a big difference,” he said.

Cr Reece said the initiative would be implemented in close collaboration with Victoria Police and social service agencies as part of an integrated approach.

In practical terms, the new guards will likely mirror the responsibilities of local laws officers – dealing with issues such as illegal public drinking, drug use, and begging. But with ambiguity surrounding their role, critics are concerned about oversight, legal clarity, and the potential for duplication of police functions.

For households, the budget also delivers some cost-of-living relief. Ratepayers will receive a full rebate on the state government’s three per cent rate rise, along with reduced waste charges. On-street parking fees remain frozen for the eighth consecutive year, and residents can look forward to $2 pool entry, free fitness classes, and 600 free swimming lessons this summer. Free pet registration will also be offered to owners of Melbourne’s 12,000 furry companions.

But perhaps the biggest test for this budget will be whether its legacy matches its ambition – especially when it comes to how carefully the City of Melbourne can balance investment in neighbourhood infrastructure with its new fiscal discipline.

Cr Guest was cautious but clear during the May 13 press conference.

“We’re not starting from scratch. But we are building a better foundation. That means no more ‘overpromising’ or assuming external funding that doesn’t exist. We want to move forward with honesty, accountability and a realistic plan.”

Public consultation on the draft budget is open until June 2. •