General News
31 July, 2024
A belated budget is finally set by council
More than three weeks past deadline, Horsham Rural City Council (HRCC) finally has a budget for the current financial year.
Councillors voted on Monday to adopt the 2024-25 budget as prepared by director of corporate services Kim Hargreaves and presented by CEO Sunil Bhalla.
Victoria’s Local Government Act 2020 stipulates that all council budgets must be signed off by June 30 at the latest.
Mr Bhalla said this had not been possible as he and his officers had not believed the document to be ready at that stage.
Nevertheless, he assured, "the budget 2024-2025 is prepared in accordance with the requirements of the (Act)”.
When Cr Claudia Haenel asked about possible “ramifications” for councillors of voting on a budget which, being 22 days late, was technically in breach of a requirement, Mr Bhalla said that as soon as it became apparent that HRCC would fail to meet the mid-year cut-off point he had written to the Minister for Local Government, Melissa Horne, formally seeking an extension.
He told the meeting that although he had not received notification that this had been granted, his advice was that “there are no consequences”.
“I do not believe that there is any reason for council not adopting the budget,” he said.
Mayor Robyn Gulline said that because the budget was “such a significant document”, each councillor would be allowed to speak for up to five minutes during its discussion.
HRCC plans to raise revenue of $64.946 million in 2024-25 and incur expenditure of $63.082 million, producing an operating surplus for the 12 months of $1.864 million.
In comparison, its 2023-24 revenue of $62 million and costs of $56.1 million left council $5.9 million in the black at year’s end.
The rate cap was set at 2.75 per cent.
Speaking in favour of adopting the budget, Cr Les Power said he felt uneasy at the application of an across-the-board municipal charge of $200.
"When it comes to somebody on $20,000 or $30,000 and there are people who are making anywhere from $200,000 to $1 million a year and we charge them the same amount, I don’t think it’s fair or equal,” Cr Power said.
But he said in order “for us to show ourselves as a council" the budget needed passing.
“We’re already over June 30, and to other councils that are looking on, and to the state government that’s watching us…, I would say they’d be thinking we’re a bit of a rabble at the moment instead of being a successful and prominent council,” he said.