Council Freezes Property Taxes but Cuts Kensington Market Library Hours

The Kensington Market Council yesterday passed a modified budget for the 2026-27 financial year that postpones a planned rates rise for householders but will shrink library opening hours, reduce street maintenance frequency, and delay upgrades to three community halls across the precinct.

The decision came after sustained pushback from residents' groups and small business owners who argued that a 4.2 percent rates increase would squeeze already stretched household budgets. Instead, the council froze the residential property tax at current levels through June 2027, absorbing the shortfall by cutting operational spending across multiple departments. The move affects roughly 8,400 ratepaying households in Kensington Market and 340 registered commercial properties.

Councillors described the budget as a "holding pattern" that protects household finances while the council negotiates with the state government over funding for aging water and sewerage infrastructure. Deputy Mayor Sandra Chen said at yesterday's council meeting that the authority faced a gap of $2.3 million between committed services and available revenue, with no new grants expected before the next state budget in October 2026.

Who Benefits, Who Loses

Property owners will pocket the rates freeze immediately. A household paying the median $1,847 annual rates bill will see no increase this financial year, a saving of roughly $78 compared to what a 4.2 percent rise would have cost. That puts money back into the pockets of pensioners, renters whose landlords might otherwise pass costs on, and businesses operating from leased premises.

But the trade-offs are stark for other residents. Kensington Market Library will drop from six days a week to five, closing Mondays from August 4 onwards. The cuts affect peak-use hours; evening sessions after 6 p.m. will operate only Wednesday through Friday, cutting 12 hours of weekly access. The council says the branch serves 34,200 visits per year, many from school-aged children and shift workers who rely on evening opening.

Street and park maintenance will shift from a six-week to an eight-week cycle for routine works. Graffiti removal and minor pothole repair will face longer delays. The Kensington Gardens playground upgrade, budgeted at $180,000, has been pushed from 2026-27 to 2027-28. The same freeze applies to renovations at Prahran Hall, Brunswick Community Centre, and the Market Street sports pavilion.

The Numbers Behind the Cuts

The council's operating budget for the year is $47.6 million, up 2.1 percent from the prior year due to utility and wage cost inflation. Rates revenue accounts for $29.4 million of that total. By freezing rates, the council forgoes $1.23 million in new revenue, forcing cuts to discretionary spending across parks, libraries, planning, and community services.

The state government's latest local government assistance grant to Kensington Market will total $4.1 million, unchanged from the previous year. State funding covers only specific programs like maternal health screening and waste education, leaving core maintenance and community assets dependent on rates revenue.

Council officers flagged that a continued freeze without state support would force larger cuts in 2027-28. If water and sewerage funding remains inadequate, the council may face a choice between substantial rates increases or permanent service reductions. The state government is expected to announce updated local government grants in October 2026, which could ease pressure for the following year's budget.

Residents can expect further council meetings on this issue at the August 14 full council session, where advocacy groups have requested time to comment. The library cuts take effect August 4, with notices posted at the branch and on the council website as of today.