Draft budget knocks back differential rate requests

THE Surf Coast Shire council has released its draft 2025-26 budget, but has knocked back initial requests for lower rates at farming properties or in residential villages.

A majority of councillors resolved to endorse the draft budget and invite submissions at their meeting on Tuesday this week.

The budget contains a 3 per cent rate increase, the maximum allowed under the Victorian government’s rate capping regime; a record $64.25 million capital works program, with a new capital works spend of $15.1 million; and an annual allocation to asset renewal that incrementally increases over the space of a decade, from about $10 million now to $21 million in the 10th year.

“The budget ensures council retains a sustainable long-term financial outlook, despite our challenging economic environment with ongoing inflation, increasing cost per council and for our community,” Cr Stapleton said.

“It is becoming more and more difficult to absorb the impact of costs that are increasing by more than the revenue we are able to raise through rates.”

The shire presently has three differential rates, based on a property’s Capital Improved Value (CIV): a general rate of 100 per cent, a farm rate of 75 per cent and a commercial/industrial rate of 190 percent.

During public question time, the first three speakers all asked the council to introduce a differential rate for residents of retirement villages.

They argued those residents were being treated inequitably by having to pay for shire services they did not receive (such as path maintenance, street cleaning and street lighting) as well as the retirement village’s own maintenance fees.

“I suppose that when you boil it down, do you support the concept of paying for no service? That’s our perspective,” one Kithbrooke Park resident said.

“Some banks did try that. They got into trouble.”

In response, acting shire chief executive officer Chris Pike said the rates and charges in the budget paid for a broad range of services across the entire municipality and provided broad community benefits.

“Some of some people will use some of those services and some won’t, and that varies across different types of ratepayers in different parts of the shire.

“Really, the point I’m seeking to share here is that that a common misconception can be that people will judge the value of their rates by what they see in their immediate vicinity.

“Council’s reality is that it has to consider a much broader range of services and infrastructure across a much wider area.”

Of the seven councillors present, Cr Adrian Schonfelder and Cr Joel Grist were the only ones to vote against adopting the budget.

Cr Schonfelder foreshadowed, unsuccessfully, an alternate motion to change the farm rate from 75 per cent of CIV to 50 per cent of CIV. He noted the lower figure applied to farming land in the neighbouring City of Greater Geelong.

“I feel it’s highly unethical to have rate increases during a declared drought,” he said.

Councillors Tony Phelps and Paul Barker were absent.

The exhibition period for the budget runs until May 26, and the shire has earmarked June 3 for a special council meeting for the hearing of submissions.

For more information, head to surfcoast.vic.gov.au