Council adopts 2024-25 budget

Published on 26 June 2024

A focus on maintaining existing service levels while living within its means in a challenging economic environment is the aim of the Glenelg Shire Council 2024-25 budget.

Council last night voted to adopt the budget, with a key change from the draft after listening to public submissions.

The proposed reintroduction of the footpath trading fee has been scrapped, with the fee accounting for 23 of the 33 public submissions that were received.

Glenelg Shire Mayor Karen Stephens said Council had taken that feedback on board and listened to the community.

“We recognise that times are tough for most in the community, including businesses, so Council has decided to continue to carry the cost of administering footpath trading,” Cr Stephens said.

“Council itself is not immune for increasing cost pressures in everything we do, and this budget aims to be financially responsible while making the most of the limited funds available.

“With the Victorian Government’s rates cap being 2.75 per cent, it means Council’s income from rates will increase by about $688,000, while the increase in costs is substantially above that amount.

“The costs of continuing to provide the existing Council services and programs together with higher materials, utilities and insurance costs have for some time been escalating at a much greater rate than the rate cap.

“This is the most significant factor into why Council has a $2.1 million deficit in the budget.”

The average rate per assessment in 2024-25 will be about $1843.

Cr Stephens said Council was providing plenty with the resources it had.

“We have more than 2,700km of local roads in Glenelg Shire – to put it another way, that’s enough road to drive from Portland to beyond Townsville,” she said.

“This budget includes the upkeep of those roads, while we’d love to see more money also put into State Government-managed roads.

“Those main arterial roads are the ones most vehicles travel on, and Council has been advocating for years for a greater spend on them. “We have also been delivering a large capital works program in recent years and that will continue in 2024-25 with $7.9 million budgeted.

“The focus will be on upkeep of what we have rather than new projects and it’s also important for ratepayers to realise that the money for these projects largely comes from Federal and State Government grants, as well as from rates.

“We’ve been very fortunate in recent years to receive government funding for those works but the current economic climate has also seen a reduction in opportunities for grants.

“Many of our fees and charges are statutory too, so we have no option to change those, but with the footpath trading fee we have been able to use our discretion to not include it.”

Whilst the budget shows a $2.1m deficit, this figure includes depreciation and amortisation.

Excluding these, capital funds and internal cost allocations, Council expects to deliver a cash surplus of $5.3 million, which will be used to fund the Capital Works Program and repay borrowings.

The adoption of the budget follows an extensive community consultation process which began in February.

Budget Information Sessions were conducted in Nelson, Dartmoor, Heywood, Portland and Casterton throughout the month seeking community input into the development of the draft budget.

A further 33 feedback responses were received to the draft budget which was open from 26 April to 17 May 2024.

These information sessions generated many excellent suggestions for budget consideration, including the following which were adopted:

• $50,000 to maintain the condition of the Heywood Old School.

• Ongoing funding of $25,000 in the renewal budget for accessibility projects throughout the Shire.

• Contributions to the three major events in Casterton, Portland and Heywood and continuing to fund Christmas and New Year activities across the Shire.

• Ongoing funding of $200,000 through the renewal budget for recreational assets including playground equipment.

Key Capital Works projects include:

• Renewal of Shire wide Council buildings $320,000.

• Renewal of plant, equipment and vehicles $1.1m.

• Renewal of Library resources at all libraries $95,000.

• Road Renewal Shire wide $3.5m.

• Kerb and Channel renewal across the Shire $200,000.

• Pathway renewal across the Shire $150,000.

• Recreation Asset renewal Shire wide $200,000.

Each year, the demands placed on Council exceed the revenue available. Council will continue to focus on identifying sustainable cost savings that will enable it to deliver on the Council Plan 2021-25 and ensure the needs and aspirations of the community are realised.

Council will also continue to seek community input and engage the Glenelg Shire community in these important decisions.