Council releases draft Budget & Financial Plan for community feedback

Published on 13 May 2025

At a Special Council Meeting last night, Council endorsed its draft 2025/26 Budget and 10-Year Financial Plan 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. 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," said Cr Don Henderson.

Council’s long-term financial strategy is guided by its Financial Vision, adopted in September 2024 and developed in partnership with the community.

“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,” Cr Don Henderson.

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,” said Cr Don Henderson.

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,” said Cr Don Henderson.

“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,” concluded Cr Don Henderson.

Community feedback on the draft Budget and 10-year Financial Plan is open until Thursday 5 June. To view the documents and provide input, visit https://participate.hepburn.vic.gov.au/hepburn-together-2025-2029. Hard copy surveys will be available in our libraries and customer service hubs.