Borough’s 2026-27 budget to break even

THE Borough of Queenscliffe has presented a budget for the next financial year slightly better than break-even as it takes a “cautious and sustainable approach in an uncertain environment”.

Councillors unanimously voted to endorse the draft 2025-26 budget and draft 2026-36 financial plan at their meeting on Wednesday last week.

The 2026-27 draft budget delivers a recurring underlying surplus of $70,000 while supporting increased service levels across parks, gardens and vegetation maintenance, and maintains a zero-debt position.

Capital projects will receive $5.8 million. Of this, $2.7 million is for projects carried forward, such as the Point Lonsdale Maritime and Defence Project, the Queenscliff Community Resilience Battery and toilet renewal at Toc H.

New projects include $1 million for new premium cabins at the recreation reserve, $200,000 for reinforcing the roof of the Queenscliff Town Hall, $180,000 for revitalising the south end of Hesse Street, and $125,000 for installing a barbecue shelter at Royal Park.

The budget includes a rate increase of 2.75 per cent, in line with the state government’s rate capping framework.

This increase will generate an extra $214,000 in income (on an annualised basis), with total rates income for 2026-27 estimated to be $8 million.

Recurring expenses (excluding waste) will increase by 2.4 per cent, below assumed CPI and EBA increases.

The budget transfers $336,000 to the General Reserve, strengthening its balance to $1.8 million

The Asset Replacement Reserve is forecast to reach $2 million, which will fund about two years of asset renewal based on existing asset management plans.

The budget states that local governments “continue to operate in a challenging financial environment”.

“Rising input costs, combined with statutory limits on rate increases, place significant pressure on councils’ ability to maintain essential services while managing expenditure responsibly.

“Ongoing global uncertainty increases the risk that inflation may remain elevated for longer than anticipated, which could further constrain [the] council’s financial capacity.”

Speaking at the meeting, Cr Isabelle Tolhurst said there had been considerable effort this year by both officers and councillors to improve and refine the budget process.

“I’ve been in the fortunate position of saying for five budgets now – four, at least – no borrowings and no debt. How many councils can say that in 2026?” she said.

Submissions to the borough’s draft budget and financial plan will close at 4pm on 18 May, with the council to adopt both documents at its 24 June meeting.

For more information or to make a submission, head to queenscliffe.vic.gov.au