General News
26 May, 2025
Budget draft now seeking feedback
Yarriambiack councillors adopted council's draft 2025/26 budget at their recent unscheduled May meeting.
The document, which is now up for community consultation, was formulated based on council's strategic priorities including
Yarriambiack CEO Tammy Smith said the document indicates that 44 per cent of council's revenue is obtained from grant funding.
"Only 50 per cent of our funding is generated from rates and associated charges," she said.
"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 two per cent of revenue being generated from user fees and fines.
“Other sources of revenue come from community contributions for grant funding applications."
The Murtoa community recently contributed towards the Murtoa Tennis and Netball courts construction.
Hopetoun also contributed significantly towards the recent lighting project as well as to the Hopetoun Swimming Pool and change room redevelopment.
"Partnerships like these enable the council to support essential redevelopments and improvements of community assets across our shire," Mrs Smith said.
Council's capital works program is proposed to decrease to $8.5 million, compared to 2024/25 budget of $10.6 million due to the conclusion of the Local Roads and Community Infrastructure Funding program after June 30, 2025.
A three per cent increase has been proposed 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," Mrs Smith said.
She said the proposed allocation distribution for clubs and groups concerning pools and recreation reserves will be presented to councillors on May 28 during the ordinary meeting of council.
"Consultation will follow before adoption in late June or July," Mrs Smith said.
The draft budget looks at an increase of three per cent in general rate revenue which is the rate cap that has been set by the Minister for Local Government.
Council plans to raise $15.5 million in rates and charges for the upcoming 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 per cent arrears balance by March 31, 2025.
The estimated outstanding rates for June 30 is around 8 per cent which is higher than the Victorian Council average.
"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," Mrs Smith said.
"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 also added that the differential rate has been recommended to be maintained for the financial year at 42 per cent less of the rate in the dollar.
"The municipal charge is proposed to be increased from $84.08 to $86.60 per rateable assessment for the 2025-26 year," she said.
Waste and recycling charges are needed to be increased by 31 per cent to achieve full cost recovery as council faces ongoing challenges with waste and recycling costs.
"However, recognizing the burden this would place on ratepayers, the council will raise annual service charges by 10 per cent," Mrs Smith said.
"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."
To address the issue, council is proposing a fee of $60 per cubic metre for commercial quantities of cardboard received at the transfer station.
Council spends around $50,000 annually to provide a cardboard disposal service, mainly for businesses.
Residential ratepayers currently cover the cost of this service through their waste and recycling charge.
Disposal of domestic quantities of cardboard and newspapers will remain free.
In the 2024/25 financial year, free green waste disposal was offered to residents with a load limit of 6 x 4 trailer size.
This offer wasn't available to businesses or commercial entities and will continue into the 2025/26 financial year.
Mrs Smith said over the next six months, council's focus will be examining the long-term financial plan thoroughly.
"We aim to evaluate how we can achieve a balance between financial sustainability, effective governance, and maintaining service levels for the future," she said.
"Given the limited funding and revenue-generating activities available to small rural councils, it is indeed a challenging environment to navigate."
Community feedback on the draft budget document is now open for 28 days, closing at 12.01am on June 11.
Alongside seeking community feedback, council has embarked on a Budget Road Show throughout the shire.