At a Special Council Meeting last week the Hepburn Shire Council endorsed its draft 2025/26 Budget and 10-Year Financial Plan to go out for public exhibition and community feedback.

Mayor, Cr Don Henderson, said that the draft Budget is grounded in improving financial sustainability and a commitment to core services.

“To face the challenges ahead, we must build strong financial foundations. Like many of the 79 councils across Victoria, we are experiencing financial pressures that will inevitably impact how we deliver services,” Cr Henderson said.

“The Budget has strong ties to the Council Plan, ensuring that any strategic objectives set out in the plan can be delivered.

“Input from the adopted Financial Vision, our Deliberative Engagement Panel, Shire-wide survey, and insights from Officers and Councillors has shaped the Council Plan and this associated budget,” Cr Henderson said.

“The 2025/26 Budget reflects our focus on essential services and makes difficult but responsible choices to safeguard both our short and long-term future.”

Key draft Budget outcomes:

• Budgeted an operating surplus and an adjusted underlying surplus for the 2025/2026 year, and forecast a positive unrestricted cash position at June 2026, these are positive trends and improvements on previous financial years. 

• A $13.07 million capital works program is proposed, focused on renewing existing assets and fulfilling previously committed projects with nearly $4 million (30%) in state and federal funding.
• Within the capital budget, $6.59 million is allocated to road upgrades, more than double the five-year average of $3.03 million, enabled by $3.64 million in state and federal funding.
• Operational funding of $11.08 million for roads, facilities, asset maintenance, parks and open spaces, and waste operations.
• Over $1 million invested in strategic planning, including further progressing the Township Structure Plans, the Rural Strategy, and the Integrated Transport Strategy, and including funding to complete the Environmental Effects Statement to oppose the Western Renewable Link.
• No new borrowings.

Organisational changes and service delivery:

• Council has conducted an intensive internal review to identify $2.54 million in operational savings, including a reduction in executive and management roles.
• The $2.54 million (7.2%) is in addition to the $1.5 million in permanent savings in 2024/25, meaning the organisation is investing $4.04 million or 11.4% less in operational costs than two years ago as we continue our financial position recovery. 
• All service areas have had a form of budget reduction.

“We are focusing resources on delivering core services and streamlining our organisation to be more efficient,” Cr Henderson said.

Revenue and rates:

• Council expects to collect $43.9 million from rates, charges, grants, and other sources.
• Council has secured $11.42 million in grants and external funding.
• Rates will increase by 10%, including the State Government’s 3 per cent rate cap, with an additional 7 per cent one-off uplift approved by the Essential Services Commission to support long-term financial viability. This will generate an additional $1.36 million.
• Annual waste service charges and kerbside collections have no increase to cost for ratepayers, and residents using food and garden organics services, who will see a $40 annual reduction. 

“The ability to hold kerbside collection rates at no increase and provide a reduction for FOGO is a great example of delivering better value for money where possible,” Cr Henderson said.

“We know not every decision in this budget will be popular, but they are necessary. We have a legal and moral duty to ensure Council’s long-term viability and to act in the best interest of our community, now and in the years to come.”

Community feedback on the draft Budget and 10-year Financial Plan is open until Thursday 5 June.

Those keen to view the documents and provide input are being invited to visit https://participate.hepburn.vic.gov.au/hepburn-together-2025-2029.

Hard copy surveys will be available in libraries and customer service hubs throughout the shire.

The Macedon Ranges Shire is inviting public feedback in response to its new Draft Budget 2025-26.

Feedback submissions are being accepted for a two-week period which opened April 24 and will run through to May 8.

The council says it is a valuable opportunity for the community to provide feedback on key proposals and initiatives within the budget, which will be considered alongside any submissions received at the June 2025 Council Meeting.

“We’re proposing a balanced budget that sees an increased focus on ‘back to basics’,” Macedon Ranges Shire Mayor Cr Dom Bonanno said.

“I encourage everyone to have a look at what we’re proposing in this concise version of the Draft Budget 2025-26 and tell us what you think.”

Submissions can be made via yoursay.mrsc.vic.gov.au/budget-2025-26

Hepburn Shire Council is in such dire financial straits that Mayor Cr Brian Hood and two other councillors voted to defer the release of its draft budget until September.

At a special meeting of council on May 28, Cr Lesley Hewitt moved a motion which acknowledged the challenging financial environment that is confronting councils across Victoria and requested the CEO and Mayor write to the Local Government Minister to seek an extension of time to the September 2024 council meeting to adopt the budget, to allow the council to undertake further work including extensive community consultation.

The motion also requested that the CEO work with councillors to undertake additional councillor workshops, engage with the community during July and prepare an updated Financial Plan (10 years) for consideration at the September 2024 council meeting that addresses the long-term financial sustainability of the council.

It was voted for by Cr Hewitt, Cr Don Henderson and Cr Hood. Those against were Cr Jen Bray, Cr Juliet Simpson, Cr Tessa Halliday and Cr Tim Drylie. After alternative motions, the draft budget was moved to be released for public discussion.

Cr Hood, speaking on why the draft budget release should be delayed said it was “absolutely unacceptable and unsustainable to budget for deficits”.

“The draft budget does not meet the requirements of the overarching governance principles set out which relate to ensuring the ongoing financial viability of council.

“(It) does not prudently manage financial risk (and) in its current form it also does not meet the requirement to provide stability and predictability for the community. The limited mention of rates does just the opposite – it creates uncertainty.”

Cr Hood said in its current form the draft budget posed unacceptable risks and was outside the council’s stipulated risk appetite and policy in that it “recklessly projects a scenario of having no unrestricted cash available to buffer against unforeseen emergencies (such as the storm and flood events experienced in recent years).”

Cr Hood said the draft budget disclosed unfunded cash shortfalls in the order of $4m in each of years 2, 3 and 4 – a gap equivalent to 20 per cent of the council’s rates base or 12.5 per cent of its cash operating expenses.

“In reality the budget quantifies massive problems to the community with no solutions. It is simply unfair and unrealistic to present a budget with massive deficits and cash shortfalls for a review by the community in less than three weeks. Nothing constructive could be achieved in that period.

“While there has been limited discussion/debate today on the budget’s contents there has been absolutely no discussion on what the next three weeks’ consultation looks like.

“When informing the community of further deficits, no cash buffer, no major capex projects, possible service cuts and rate hikes what do we expect them to do with that info in three weeks and what do we expect their reaction to be?”

In a media briefing the day before the draft budget was released, Cr Hood, speaking on behalf of the council as mayor, said financial issues had arisen from the cumulative effect of sub-CPI rate capping ($5.8m over the past three years), high inflation in construction and other costs, cost-shifting from other levels of government, mostly state, and waste charge changes effective from 25/26.

Cr Hood also said Hepburn Shire had a small population, a low rate base and an overly ambitious service offering from the council.

The council is looking at asking the state government for a rates variation from the current government cap, cuts of operating costs of $1.5 million, new borrowings of $5.5 million for capital expenditure and the Daylesford Town Hall, the completion of only ongoing and renewal works, and slashing full-time staff from 190 to 174.

Public consultation is open until June 13, with its adoption set for June 25. Link: www.participate.hepburn.vic.gov.au/draft-budget

Words: Donna Kelly

The Hepburn Shire Council has released its $59.10 million draft budget for 2023-24, which is now open for community feedback.

Any member of the community can now view the draft budget and budget summary online at https://participate.hepburn.vic.gov.au/draft-budget and make a submission by 5pm on Thursday 8 June. Council will consider the budget at a Special Council Meeting to be held on Tuesday 27 June. Council meetings are livestreamed via Facebook.

Mayor, Cr Brian Hood, said that the draft budget includes a record $19.56 million investment in capital works projects, which are predominately funded by Council.

“The budget has been prepared in one of the toughest financial environments in recent history. Our Shire has been significantly impacted by the COVID pandemic, multiple extreme natural disasters, rising inflation and interest rates, sector-wide shortages of construction contractors and extraordinary increases to material and construction costs,” said Cr Hood.

“We have sought to deliver a fiscally responsible budget that aims to achieve actions in our Council Plan, whilst balancing available resources and community expectations. We are in a delicate and challenging financial position which we will continue to manage prudently,” he said.

“While we have aimed to deliver a financially responsible budget, we are continuing to invest in projects that are important to our community and that align with priorities in our four-year Council Plan and the Municipal Public Health and Wellbeing Plan.

“There is a lot of work to be done as part of our recently adopted strategies, such as the Early and Middle Years, Youth and Positive Ageing strategies, Disability Action and Inclusion Plan and Gender Equality Action Plan,” he said.

The budget also continues the implementation of the Sustainable Hepburn strategy, including initiatives relating to circular economy, reducing emissions, protecting the natural environment and biodiversity, low waste initiatives and climate and water resilience.

Capital works highlights

· Major investment in roads of $2.73 million, made up of $1.28 million for pavement rehabilitation, $950,000 for road renewal, and $500,000 for gravel road re-sheeting.

· Construction of the Creswick Trails ($5.9 million).

· Renewal of the historic Wheelers Bridge ($3.2 million, supported by $2.8 million from the Federal Government).

· Renewal works to protect and improve the historic Daylesford Town Hall ($1.0 million).

· Completion of the Trentham Community Hub ($2.02 million), which will deliver a library, Council hub and community facilities.

· Detailed planning for Glenlyon Recreation Reserve Pavilion redevelopment ($150,000).

· Repairs to Trentham and Drummond tennis courts ($140,000).

· Detailed designs for the Clunes Recreation Reserve Masterplan ($100,000).

· Cyber security initiatives for data protection ($130,000).

· Review options for increased regulation of short-term accommodation properties ($30,000).

The budget proposes $5.9 million of new borrowings to support the delivery of key infrastructure assets, including $1 million for stage one of critical remedial works for the Daylesford Town Hall to ensure the long-term structural integrity of the building, and $4.9 million to be allocated to the construction of the 60-kilometre Creswick Trails.

The total cost of the Creswick Trails project, which started in 2017 and is under construction, is expected to total $9.4 million. Council has secured government funding

of $2.57 million towards this project and is continuing to lobby government for additional financial support.

“Along with hosting Commonwealth Games competition in 2026, the Creswick Trails network will be one of Australia’s key mountain biking destinations,” said Cr Hood.

The budget continues the important delivery of more than 100 services to the community, including road maintenance and repair, library services, early years, youth and positive ageing programs, emergency management response, major projects, tourism, grants and more.

Hepburn Shire was severely impacted by storm events in June 2021 (east of Shire), in January 2022 (west of Shire), and in October 2022 (Shire-wide). Forecast expenditure on storm events is $20.8 million by June 2024, with a net cost to Council (after government grants) close to $2.5 million, equivalent to 12.4% of Council’s annual general rates revenue.

“Planning for our future is an important component of our draft budget, with $2 million allocated to further enhance and support both our statutory and strategic planning activities. This includes development of critically important town structure plans as part of our Future Hepburn project,” said Cr Hood.

“We will also invest $130,000 in cyber security initiatives to ensure protection of data and will review possibilities of increased regulation of short-term accommodation properties ($30,000).”

Rates and charges

Rates and charges make up over half of Council’s annual budgeted revenue and are vital to provide the services and facilities that our community needs. Rate increases have been capped at 3.5% in line with the Victorian Government’s Fair Go Rates System.

“There has been a 7% CPI increase in the past year (to March) and we know that households are struggling with the increase in living expenses,” said Cr Hood.

Properties are revalued each year by the State Government and rates are based on the value of a property.

“There can be a misconception that Council receives additional revenue when the property market increases. This is not the case. The rate revenue for 2023/24 can only increase by 3.5% over the amount of rates collected in the 2022/23 (current) financial year,” said Cr Hood.

Consequently, based on property value, some residents will incur a rate increase of more than 3.5%, while others will incur an increase of less than 3.5% and some will see a decrease in rates.

Pensioners who qualify under the State Government’s Pensioner Rebate Remission scheme will be entitled to a Council-funded rebate of $21.

Under the draft budget the annual waste charges will increase approximately 6.2% on average to meet the increased costs of the service. The standard annual fee for a residential property (weekly garbage collection and fortnightly recycling) will be $570 (or $10.96 per week).