Funding our facilities and services

Rates in Bayside are relatively high due to:

  • Low density (14 homes per hectare)
  • No major industry (only 3% land zoned for commercial use)
  • Less government funding due to relatively high socioeconomic status

A highly regarded aspect of Bayside’s character is its open spaces, tree lined streets and large residential allotments with relatively low housing density.

The density of rateable properties is the largest single determinant of a local government’s financial viability.

In response to strong community sentiment to maintain the character of our residential neighbourhoods, last year Council achieved the strictest planning controls available in Victoria for 83% of Bayside.

Lower density means Bayside has fewer people paying rates to fund infrastructure such as roads, parks, community buildings and drains. The impact of our low density planning controls will continue to keep average household rate levels high compared to municipalities with higher density.

On average our rates are higher than our neighbours but our revenue is less overall and we spend less per resident and per property than our neighbours.

With only 14 homes per hectare we have the lowest housing density of our immediate neighbours.

Our vast tracts of foreshore and open space contribute nothing to Council revenue but cost a lot to maintain.

Bayside’s largely residential neighbourhoods means only three per cent of Bayside is zoned commercial so there is no major industry helping to pay.

Overall our community has higher socio economic advantage than many others. This means we attract less grant funding from other levels of government.

And the funding we do get doesn't keep up with the cost of providing important community services like aged care, maternal and child health, school crossing monitors and libraries.

It's the price we pay for living in one of the most liveable parts of the most liveable city in the world.
Council has a deliberate financial strategy to increase spending on community facilities, pay off debt and maintain the same level of service while keeping pressure off rates by finding savings and looking for other sources of revenue.

More information
Service performance highlights
Strategy for managing rates
How your rates are spent
Housing and population density


Page last updated: 27 Nov 2015