Budget in surplus but capital works spend jumps $20m

THE Surf Coast Shire is reporting an operating surplus of nearly $4.8 million in the first nine months of its present budget despite spending on capital works being nearly $29 million higher.

According to the March quarterly report on the 2025–26 budget, presented to councillors at their meeting on Tuesday, the surplus being 11 per cent higher in the year to date is mostly because of favourable variances in depreciation, materials and services and other expenses.

The statement of capital works for the year to date reveals the spend is $54.6 million; $20.2 million (58 per cent) higher than the adopted budget mainly due to the timing of the Wurdi Baierr Aquatic and Recreation Centre.

As a result, the annual capital works budget of $52.6 million has been forecast up to $81.5 million.

Officers noted rates and charges collection is being monitored closely – the year to date figure is nearly $1 million behind the figure in the budget – with cost of living pressures affecting some ratepayers’ ability to pay.

Speaking at Tuesday’s meeting, Cr Liz Pattison said it was encouraging to see strong financial oversight in areas such as materials and service expenditure, interest income, and project delivery.

“At the same time, I think it’s important that we may remain realistic and cautious about the broader environment we are operating in,” she said.

“The report rightly notes cost of living pressures affecting ratepayers, slowing development activity, and the broader economic uncertainty.These are all factors that can influence council’s revenue and the community’s capacity to pay over time.”

Cr Paul Barker voted against noting the report, describing it as “a budget that is drifting further away from restraint”.

He said the new $81.5 million forecast for capital works was not a rounding error but an “unbudgeted jump of nearly $700 for every resident of the Surf Coast Shire”.

Cr Tony Phelps said the shire was part of a global system and not so separate from the impacts of the Iran war.

“So we monitor these impacts but it’s not yet had a material impact on the budget, and councillors made a conscious decision in the draft budget not to propose an increase in the waste charge to try to not add further burden to households already doing it tough,” he said.

The motion to note the quarterly report passed five votes to two.