The City of Greater Geelong has released its draft budget as it prepares to host the Commonwealth Games in three years' time ©City of Greater Geelong

The City of Greater Geelong has revealed plans to spend almost AUD $8 million (£4.2 million/$5.3 million/€4.8 million) for the 2026 Commonwealth Games despite facing "enormous" financial challenges.

Geelong is expected to stage a series of sports during Victoria 2026 as well as the Closing Ceremony after being named as one of the Games’ regional hubs.

Last month, Geelong’s Deputy Mayor Anthony Aiken warned that the Australian city "cannot afford" to fund the staging of the event after revealing that the Council had "blown out a multi-million-dollar deficit".

The City of Greater Geelong recently announced a series of redundancies as part of cost-cutting measures, with 19 staff reportedly expected to lose their jobs.

Geelong’s Mayor Trent Sullivan said inflation and rising costs had put the Council under
Geelong’s Mayor Trent Sullivan said inflation and rising costs had put the Council under "enormous financial pressure" ©City of Greater Geelong

A draft budget for 2023 through to 2027 has now been released revealing that the Council faces a AUD $8 million deficit in the current financial year.

A statement signed by Geelong’s Mayor Trent Sullivan and acting chief executive Kaarina Phyland in the document said that the Council was under "enormous financial pressure", citing the impacts of inflation and rising costs.

"We’ve had to focus, first and foremost, on being financially responsible," Sullivan and Phyland wrote.

"To set ourselves up for long-term financial sustainability, it is vital we balance our books and concentrate on affordability.

"We have examined all parts of our organisation to find savings and free up funds to invest back into the community.

Kardinia Park in Geelong has been chosen as the venue for the Closing Ceremony of Victoria 2026 and is due to undergo a revamp in time for the Games ©Getty Images
Kardinia Park in Geelong has been chosen as the venue for the Closing Ceremony of Victoria 2026 and is due to undergo a revamp in time for the Games ©Getty Images

"However, we have had to make a number of difficult decisions we understand will cause disappointment."

Despite the financial struggles, the City of Greater Geelong forecasts to spend AUD $7.624 million (£4.043 million/$5.293 million/€4.58 million) on the Games.

The funds are being budgeted for the "contribution to the development of the major competition venues for the Commonwealth Games 2026 to achieve the best legacy outcomes for the community".

The City of Greater Geelong said that the Games presented "an opportunity and a challenge".

Geelong is set to host swimming, Para swimming, diving, triathlon, Para triathlon, weightlifting, Para powerlifting, beach volleyball, coastal rowing, cricket, golf, artistic gymnastics and hockey events at Victoria 2026.

Kardinia Park has also been chosen as the venue for the Closing Ceremony and is undergoing a major revamp for the Games.