Sensible infrastructure spend, max rate jumps in balanced borough budget

THE BOROUGH of Queenscliffe will remain debt-free and plans to continue shaving its underlying deficit despite inflationary pressure in a “reasonable” budget handed down last week.

But the council will deliver a “modest” capital works program and pass on maximum rate increases as it faces increasing operating costs in coming years.

The borough’s draft 2023/24 budget and updated 10-year financial plan is now out for community comment after officers tabled the financials at April’s council meeting.

The borough expects to be about $400,000 in the black in 2023/24, with an underlying operating figure of $50,000.

Financial statements show it expects a $2 million operating surplus for the current financial year – largely due to the recent sale of land at Murray Road to private developers and early receipt of financial assistance grants.

Operating expenses are up 7.1 per cent ($896,000) compared with 2022/23 and 5.6 per cent higher on an ongoing basis due to economic pressure, with increases in employee costs (up $473,000, 9.5 per cent) and materials and services ($428,000, 7.2 per cent) also affecting its bottom line.

The council allocated $2.8 million for capital works spending, including $293,000 of projects carried over from the previous financial year and $829,000 in asset renewal.

New projects include $1 million for development of the Point Lonsdale Maritime and Defence Precinct following a state government budget commitment, and $160,000 to upgrade lighting at Queenscliffe Recreation Reserve to deliver a federal government election promise.

The average rates bill will rise by about $44 to $2,232, while waste management charges will be up by $29.24 (7.3 per cent).

Cr Donnie Grigau quizzed chief executive officer Martin Gill about the borough potentially passing on a smaller rate increase of 3 per cent – but Mr Gill indicated doing so would have negative impacts elsewhere.

“Maybe that’s something that emerges through the consultation, but it would mean a severe reduction in services to the community and potentially some redundancies too,” Mr Gill said.

Cr Grigau encouraged borough residents to have their say on the draft budget in the coming weeks.

“I think it’s over to the public now to go and review the papers, the budget papers and actually have your voice and say how you want your rates spent.

“It’s very important, and the feedback has to come back to us to make sure that we deliver for you.”

The borough will host an explanatory presentation evening on Wednesday, May 10 for council officers to explain the budget and for community members to ask questions.

It will also receive submissions until May 25 for feedback to inform the council’s final decision to adopt the budget in June.