Have Your Say - Draft Budget 2025/26
Published on 16 May 2025
The Draft Council Budget, presented to Councillors on 14 May, was formulated based on Council's strategic priorities as detailed in key Council documents.
Chief Executive Officer, Tammy Smith outlined that “The Draft Budget for 2025/2026 indicates that 44% of our revenue is obtained from grant funding. Only 50% of our funding is generated from rates and associated charges. This dependence on grant funding increases pressure on the Council to maintain service levels as well as to undertake the renewal and upgrade of assets”.
“We have limited ability to raise revenue via other means, with only 2% of revenue being generated from user fees and fines” continued Mrs Smith.
“Other sources of revenue come from community contributions for grant funding applications. Primary examples included in our Budget are the co-contribution from the Murtoa community for the Murtoa Tennis and Netball Courts construction, the Hopetoun community's entire contribution for the new netball lighting project, and their significant contribution to the Hopetoun Swimming Pool and Changeroom redevelopment. Partnerships like these enable the Council to support essential redevelopments and improvements of community assets across our Shire”, stated Mrs Smith.
The Council’s expenditure includes a capital works program of $8.5 million, which is a decrease compared to previous years due to the conclusion of the Local Roads and Community Infrastructure Funding program after 30 June 2025.
Council has increased the overall funding by 3% from the prior year for swimming pools, progress associations administration (or equivalent), recreation reserves, specified town halls and weir pools allocations. "We appreciate the volunteers across the Shire who maintain these important assets that provide both passive and active recreation opportunities and support tourism and economic development," stated Mrs Smith.
Mrs Smith stated, "The proposed allocation distribution for clubs and groups concerning pools and recreation reserves, developed via community consultation and aligned with the revised Sport and Recreation Strategy, will be presented to Councillors on 28 May 2025 during the Ordinary Meeting of Council. Consultation will follow before adoption in late June or July."
The Draft Budget provides an increase in general rate revenue of 3% for the 2025-26 year. The rate cap has been set at 3% by the Minister for Local Government.
Council plans to raise $15.5 million in rates and charges for the 2025-26 financial year. As of March 31, 2025, there were $2.723 million in rates arrears: $1.16 million from prior years and $1.564 million from the current year. In 2024-25, Council raised $15.0334 million but had an 18% arrears balance by March 31, 2025. The estimated outstanding rates for June 30, 2025, is around 8%, higher than the Victorian Council average.
Mrs. Smith stated, "While we have a higher-than-average rates arrears balance, we actively pursue this through debt collection, and where possible, sell properties via the Section 181 provisions within the Local Government Act 1989." Rates arrears impact Council's cash flow and result in missed opportunities for community development, infrastructure improvements, and essential services. When residents' ability to pay is limited, our Council encounters difficulties in maintaining public amenities, supporting education, and promoting economic growth and development”.
Mrs Smith continued that, “the differential rate is recommended to be maintained for the financial year at 42% less of the rate in the dollar and that the municipal charge is proposed to be increase from $84.08 to $86.60 per rateable assessment for the 2025-26 year”.
“Yarriambiack Shire faces ongoing challenges with waste and recycling costs. To achieve full cost recovery, charges would need to increase by 31%. However, recognizing the burden this would place on ratepayers, the Council will raise annual service charges by 10%. Despite this increase, the Council will operate at a $315,000 deficit for waste and recycling, requiring cost shifting across services to offset the shortfall”, stated Mrs Smith.
The Council is addressing the issue of waste and recycling costs by proposing a fee of $60 per cubic metre for commercial quantities of cardboard received at the transfer station. The Council spends approximately $50,000 annually to provide a cardboard disposal service mainly for businesses. Currently, residential ratepayers cover the cost of this service through their waste and recycling charge. Disposal of domestic quantities of cardboard and newspapers will remain free. Additionally, the Council offered free green waste disposal in the 2024-25 financial year for residents, with a load limit of 6 x 4 trailer size. This offer was not available to businesses or commercial entities. This initiative will continue into the 2025-26 financial year.
The Budget for 2025-26 is particularly constrained compared to previous years. As the Council's dependence on grant funding increases and funds remain limited, it is imperative to exercise stringent oversight over expenditure commitments and manage cash flow both presently and in the future.
Feedback is open for 28 days, which aligns with Council’s Community Engagement Policy and will close at 12.01am, 11 June 2025.
In addition to seeking community feedback on the draft document, the Budget Road Show is currently underway throughout the Shire, with the initial session beginning on 05 May 2025.
Mrs Smith confirmed that, “over the next six months, our primary focus will be to thoroughly examine the Council’s long-term financial plan. We aim to evaluate how we can achieve a balance between financial sustainability, effective governance, and maintaining service levels for the future. Given the limited funding and revenue-generating activities available to small rural Councils, it is indeed a challenging environment to navigate”.
THE END
Tammy Smith
Chief Executive Officer