General News
27 June, 2024
The Central Goldfields Shire Council’s new budget reflects financial challenges
Nearing the end of its current term, the Central Goldfields Shire Council has adopted its budget for the 2024/25 financial year and while a large capital works portfolio may appear enticing, the budget itself signifies the continued financial strain...
Nearing the end of its current term, the Central Goldfields Shire Council has adopted its budget for the 2024/25 financial year and while a large capital works portfolio may appear enticing, the budget itself signifies the continued financial strain the organisation faces.
Councillors moved unanimously to adopt the budget at Tuesday night’s hour-long meeting, but not without noting the increasingly constrained budgets rural councils are faced with.
Under the Victorian Government’s Fair Go Rates System, rate increases for the coming financial year were capped at 2.75 percent, and while the system is designed to reduce any increase shock felt by ratepayers, it also hampers council’s ability to make money.
Rates are council's single biggest money maker — accounting for 41 percent of total income, according to the budget paper, but with Consumer Price Index (CPI) and expenses continuing to rise while rate capping is in place, it’s becoming increasingly more difficult for council to deliver the essential services it provides the community.
“The future of local government with the challenges we face in a rate capping environment is very serious and will become more challenging and will require more difficult decisions ahead,” councillor Chris Meddows-Taylor said at this week’s meeting.
“It’s important the community understands that challenge because so often the comments are that council should do this or should do that and the reality is we would do it if we could, but we just don’t have the resources.
“This [budget] really indicates how serious the situation is and there’s no immediate prospect for how this situation will change, it’s just going to get worse.”
Hinted at in Tuesday’s budget is the possibility of council applying for a rate cap variation in the 2025/26 budget, allowing for more revenue to be raised through a higher rate increase — understood to be the first time council have done so since the system’s introduction in 2015.
“It is important to note that with anticipated ministerial changes to the waste guidelines, council will look to apply for a rate cap variation for the 2025/26 year,” the report tabled alongside Tuesday’s budget read.
While on the surface rate capping appears to be a system designed with the ratepayer in mind, the inability to raise revenue through rates could see key council services, such as council-run kindergartens and meals on wheels services cut back or even stopped in extreme circumstances.
Not all doom and gloom however, the budget will also leave a legacy of improvements across the municipality.
Under the $13.9 million capital works program, largely funded through government grants, dam stabilisation works at the Goldfields Reservoir will be completed, local laws will be reviewed, the former skate and scooter park site in Majorca Road will be decommissioned and removed, a TAC Road Safety Program including speed reductions, roundabouts and splitter islands will be conducted locally and feasibility and design work for a new youth hub will occur.
Cr Meddows-Taylor said despite the financial challenges this budget presents, the continuation of capital works is the hallmark of a responsible budget.
“With a lot of attention and consideration, we’ve been able to achieve an incredibly responsible and positive outcome where we actually have balance between the range of services our community needs and capital grants and works,” he said.
“I think we can say to the community confidently that we have balanced the need to provide a range of services and a continued investment in our community through capital investments.”
Grant funded services council provides that are set to continue over the coming financial year are largely the same as previous years, with the Freeza and L2p programs to continue, as well as the addition of the Live4Life mental health support initiative.
It is also budgeted that close to $4 million will be spent upgrading and renewing local roads, bridges and footpaths.
According to the report accompanying the budget at this week’s meeting, throughout community consultation on social media and via drop-in budget information sessions, a number of residents raised questions regarding funding for the Maryborough Outdoor Pool complex.
Both the report and budget state council remains committed to reopening the facility, with advocacy work to secure the required funding to continue into the next financial year.