Christmas elves, gingerbread men and teddy bears also feature in the sprawling and flashy sideshow.
However, Hume City Council chief executive Sheena Frost said the streetside spectacle posed multiple dangers.
“The display poses a risk to essential telecommunications infrastructure and presents a potential fire hazard.
“Decorations must be contained within property boundaries to avoid hazards.”
The council have demanded the offending parts of the display be taken down within 21 days, a deadline that expires two days before Christmas.
Jacobs, who spent many hours putting up the display, said he had “taped everything down”.
Neighbours have said they love the display and don’t want to see it go.
“They’re going to be gone in a couple of weeks, so what’s the difference?” one neighbour asked.
“We like it so much, and he spent so much time doing that all. We’re so proud of our neighbour,” another resident said.
The couple have said the potential fine will present a strain on their already limited finances.
Jacobs is unable to work because of illness, and his wife works multiple jobs so the family can get by.
Commenters on social media have overwhelmingly sided with the Jacobses.
“Tell the good-for-nothing council that the potholes all over our roads are also a hazard, but you don’t see us complaining now, do you?” said an Instagram user.
“Is it illegal now to have fun?” another asked.
