June 3rd, 2026‘Disciplined, responsible’ budget up for comment

If state and federal governments continue to ignore the needs and wants of Hepburn Shire, council and the local government sector would have no choice but to cut additional services and operations in future budgets.

This is the warning from Hepburn Shire Council’s Mayor Cr Tony Clark after the draft budget was put on public exhibition last week.
Cr Clark said the draft budget was disciplined, financially responsible and responded to external cost pressures, and had been developed in a particularly constrained financial environment.
A media release said the draft budget had been developed in line with council’s Financial Vision 2024–2027 and long-term Financial Plan 2025–2035.
“These plans underpin the direction council needs to take to ensure financial sustainability, while safeguarding the services the community relies upon. The Victorian Government rate cap of 2.75 per cent has been applied,” the release said.
“Council has budgeted a minor operating surplus ($511,000), with a positive unrestricted cash position. This is a positive trend and an improvement on prior financial years. Importantly, this operating surplus reflects council’s position of ensuring all our financial reserves are ‘cash backed’ which is positive financial management, and not something that is legislatively required.
“A $10.5 million capital works program is planned, funded by council cash, reserves and grants, with no new borrowings. The program prioritises asset renewal and current project completion over new assets, with $4.83 million allocated to roads. Funding includes $2.8 million from grants and contributions.”
Cr Clark said the budget reflected a careful balance of maintaining financial discipline, responding to rising costs, and continuing to deliver strong outcomes for the community but raised the possibility of further funding cuts.
“Many households are making difficult financial decisions, and we recognise the importance of balancing our financial responsibilities with empathy and understanding.
“If state and federal governments continue to ignore the needs and wants of Hepburn Shire, council and the local government sector will have no choice but to cut additional services and operations in future budgets.
“Staying the course may require difficult choices at times, but it remains the only way for us to ensure a viable and resilient organisation. Despite significant constraints, I am proud of what we continue to achieve. Council consistently delivers high-quality services and meaningful outcomes for our customers, even in a tight financial environment. This is a testament to the dedication, innovation, and commitment of our people, who work hard to provide important services to our community.”
Cr Brian Hood said at the meeting it was important to consider the budget’s historical context.

“The draft budget has been prepared with the backdrop of an ambitious and expansive capex program costing $80m over the past seven years. Over that period cash reserves have declined by $10m and an additional $16m of new borrowings have been taken out. The projections indicate such investment in capex cannot continue.
“Through the 2024 planning work five conclusions were reached: there would be no cash to construct new assets; no cash to make co-contributions to grants; no surplus cash to fund disaster recovery works; cuts to services would be necessary; and a 10 per cent rate variation was needed. That work also identified the need for advocacy to the state government to address matters outside council’s control and the ESC called for more changes when they approved the rate variation.
“These factors each in their own right place serious questions against HSC’s viability. With only 12,000 ratepayers spread across multiple population centres the factors combine to present an extremely challenging position.
“This budget reveals a fresh challenge that again points to risk and unsustainability in the long run. Put simply, cash projections now indicate the amount of cash available for renewal capex works on existing assets cannot keep pace with depreciation. This draft budget should be released tonight. The sooner that genuine consultation and informed discussion takes place the better.”
An online survey is open until Sunday, June 14 at Participate Hepburn and a public hearing will be held Wednesday, June 24. Register via Participate Hepburn.
The council will consider the adoption of the draft 2026/27 Budget at a Special Council Meeting on Tuesday, June 30. Words: Donna Kelly