May 22nd, 2025Higher rates but less services for the shire  

Ratepayers are being asked to accept a 10 per cent rate rise while receiving  12.5 per cent less service, says Cr Brian Hood.  

Cr Hood, pictured above, was the only councillor who did not support the 2025 draft budget.

He gave a prepared speech to the council meeting but was stopped by Mayor Cr Don Henderson after five minutes.  

Cr Hood sent his piece, focusing on micro, macro and consultation issues, to The  Local in order to explain his position.

The constraints of the Local Goverment Act now require him to stand by the majority decision to release the draft documents.  

His speech has been edited for space but is available in full on his Facebook page.  The council is due to adopt the budget and plans on June 24, with consultation  closing on June 5.  

“Micro level: The 25/26 budget has been prepared under the cloud of a projected  $4m pa cash shortfall. An adjusted underlying deficit of $6.8m will be incurred in  24/25 with a cash neutral result due entirely to the injection of cash from a new  $5.5m loan.  

“As elected representatives we must acknowledge that ratepayers are enduring  challenging financial times with many under mortgage stress and cashflow hardship.  

“This is evidenced by 2420 ratepayers (approximately 30 per cent of all residential  ratepayers) falling into arrears with rate instalment payments.  

“Property tax rates calculated on property CIVs do not necessarily reflect a ratepayer’s capacity to pay (and) in a shire such as Hepburn many of our ratepayers  reside in high value properties. Their capacity to pay is another matter entirely.  

“The draft 25/26 budget allocates $31m to cash operating expenses plus $13m  to capital works. The amount of cash required to complete capital works carried over  from 24/25 into 25/26 won’t be known until after year-end financial statements are  completed.

“Dependent on a wide range of assumptions the 25/26 year is forecast to  essentially break even on the income statement but cash holdings are projected to fall  by a further $1.6m.  

“To achieve that outcome rates will be increased by 10 per cent effective July 1 2025 and operating costs incurred to provide services will be cut by $2.5m.

“Costs  have already been cut by $1.5m in the current financial year. The budget document  discloses the cost savings that will be secured across a range of service areas should the changes be fully implemented as planned.

“Of the $31m allocated to fund services only 2.4 per cent will go to customer services, 1.6 per cent to early and middle years programs, 1.6 per cent to libraries and 0.6 per cent to youth services – all core  functions aimed at supporting families.  

“An amount of $375,000 is allocated to further planning and design works for  the second stage of the Daylesford Town Hall redevelopment (a $15-20m project).  

“While I appreciate the need for long term project planning the timing of incurring  such a substantial cost may be premature when the grant funding is not yet on the  horizon and the critical social license for the project is yet to be widely established.

“Consultation: As it currently stands the budget raises more questions than  it answers. The lack of detail makes it near impossible to describe what many of  the scaled-down service areas would look like should the budget be adopted.

“The  potential release of a much-awaited budget and four-year plan will, quite rightly,  attract higher than usual interest and scrutiny – especially with the confirmed  inclusion of a 10 per cent rate increase. Ratepayers are being asked to accept a 10 per  cent price rise while receiving 12.5 per cent less service.

“Macro level: The need for a 10 per cent rate increase plus a further decrease  of $2.5m in operating costs once again highlights that HSC’s ability to meet its  legislated obligations to provide services in response to community needs is seriously  compromised.  

“In their report the ESC noted that: ‘Even with the higher cap, Hepburn will still  need to do further work to reach and maintain a financially sustainable position that  will enable it to achieve sustainable outcomes in the delivery of services and critical infrastructure in the long-term interests of their communities.’  

“I am not hearing or reading anything on further stages.  

“(With) service reductions and the 10 per cent rate increase council would  still face having no surplus cash to make co-contributions to government grants  until years later; will have no cash to fund emergencies (such as floods, storms and fires – a net cash drain of $3m in recent years); and no cash to invest into the  construction of new assets.

“There would be no surplus cash to cope with any other  emerging or contingent liabilities – for example multi-million dollar remediation  works on transfer station or landfill sites.

“With only 12,000 ratepayers and multiple  service centres across the shire, Hepburn’s financial sustainability must be seriously  questioned.”