Max rate rise included in draft shire budget

THE Surf Coast Shire is defending raising rates by the maximum amount possible in its draft 2026-27 budget, with one councillor saying the shire could not afford to do otherwise.

Endorsed by a majority of councillors on Tuesday, the draft budget has been released for public comment and contains a rate increase of 2.75 per cent, the highest allowed under the Victorian government’s rate capping policy, leading to an average increase per property of $63.

Temporary relief on rating differentials introduced last year will remain in place for a further 12 months. The farm rate will stay at 64 per cent – down from 75 per cent in 2024–25 – while the commercial and industrial rate remains at 165 per cent, down from 190 per cent.

Cr Mike Bodsworth said he endorsed the shire applying the full 2.75 per cent increase.

“The cost-of-living pressures felt at a household level also impact the council’s financial position. We cannot afford to choose a lower rate increase,” he said.

He said the state-imposed cap already imposed a “crippling constraint” without the shire adding a self-imposed one.

“Rate capping also means a reduction in any one year can never be caught up permanently and includes content on hardship provisions for those experiencing financial difficulties,” he said.

The shire’s urban waste service charge will be $533, up 3.5 per cent, and the rural waste service charge $519, up 6.1 per cent. The increases reflect growing costs, including the estimated $12.6 million required for the eventual closure and rehabilitation of the Anglesea landfill, along with continued rises in the state’s EPA waste levy.

There will be $41.73 million of proposed capital works in 2026-27, including $20.48 million in new projects.

Spending on the renewal of public assets includes $21.21 million total investment in roads, taking in civil maintenance and repairs, renewal projects and road safety upgrades; an extra $109,000 towards improved turf management on sports fields; and an additional $50,000 to expand the annual dust suppression program for unsealed roads.

As part of its financial efficiency target, the shire has found $331,000 in new operational savings, which takes accumulated ongoing operational savings for the past three financial years to $3.67 million.

There will be new borrowings of up to $6 million to complete the Wurdi Baierr Aquatic and Recreation Centre in Torquay.

The budget forecasts an annual result of a $1.7 million deficit in 2026-27 – the first of four predicted deficits the shire says have been planned in advance and will be covered with savings from the Future Cash Fund Reserve.

The draft budget has been released for feedback. Submissions close at 10am on 25 May, with the council to consider the final budget at its 23 June meeting.