Shire releases draft 2022-23 budget

THE Surf Coast Shire will roll out a capital works program of more than $34 million but will see a sharp drop in its net surplus and a sharp rise in the backlog of its assets that need renewing in the council’s latest budget.

At their meeting on Tuesday this week, councillors resolved to put the draft 2022-23 budget on public exhibition.

“The 2022-23 budget has been developed with financial prudence, and attention to the long-term financial challenge of balancing the budget and prioritising funding of projects and services for our community,” shire mayor Libby Stapleton and chief executive officer Robyn Seymour wrote in their introduction.

The budgeted net surplus (all operating revenues less expenses) for the 2022-23 year is $5.9m, a $33.8m drop from the $39.7m forecast in 2021-22, with a $23.4m decrease in government capital grants and $10.5m in found assets in the 2021-22 year cited as the main reasons. The net surplus is expected to rise to between $8.3m and $12m over the following three financial years.

The annual result of $0.8m (the shire’s unallocated cash surplus or deficit) in 2022-23 is slightly higher than the 2021-22 forecast and rises to $0.9m in 2023-24 but falls into deficit of at least $1m for the two following financial years. This is mainly driven by the increase in renewal, additional costs incurred in an election year and setup costs for the Surf Coast Aquatic and Health Centre before its opening in 2025-26, as well as the first year of operational costs for the proposed Surf Coast Cultural Centre.

Capital works for the next financial year are slightly higher than forecast, at $34.5m, with $11.6m allocated for renewing existing assets – including the $2.1m Winchelsea Pool renewal – and $12.9m for roads upgrades, maintenance and renewal. Spending on capital works declines towards 2025-26, where it is set at $19.7m.

The asset renewal backlog of $5.2m in 2021-22 nearly triples to $14.7m in 2022-23, a rise of $9.5 million. The budget papers state this is because of the timing of delivery of the asset renewal program and reassessment of asset conditions through audits.

“The asset renewal backlog as a percentage of council’s total property, infrastructure, plant and equipment asset base of $916 million is 1.60 per cent… a very low figure when considered across the local government sector.”

The amount spent on waste management has increased, from a capital allocation of $369,000 in 2020-21 to a forecast of $1.307m in this financial year and $3.546m budgeted in 2022-23 (which includes $3m for the Anglesea landfill).

There is also an increase to recurrent expenditure on waste management, which the budget papers state is due to new urban and rural waste collection, litter collection and bin repairs, and supply contract rates.

“The growth in expenditure from 2020-21 is materially related to an increase in state government EPA landfill royalty levies.”

Cr Stapleton and Ms Seymor stated the budget aligned with the seven themes in the 2021-25 Council Plan.

“This is highlighted through funding for initiatives aimed at developing stronger recognition of our Aboriginal heritage and relationships with Traditional Owners groups; a $90,000 investment to expand the arts and culture program; and a $35,000 increase to the much-loved and important community grants program.”

Rates will increase by 1.75 per cent in line with the state government’s rate capping regime.

“The annual increase in rate revenue is essential for council’s future viability, and ability to support the community and meet its aspirations,” Cr Stapleton and Ms Seymour stated.

The draft budget will close for public comment on May 24.

To read the draft budget or for more information, head to the Surf Coast Shire’s website.