Council Finalises 2025-26 Budget
Surf Coast Shire Council has finalised its 2025-26 Budget and 2025-29 Revenue and Rating Plan, introducing temporary measures aimed at easing the financial burden on drought-impacted farmers and commercial/industrial ratepayers.
Following consideration of community feedback regarding the Draft Budget and Draft Revenue and Rating Plan released in April, Council voted to:
Mayor Mike Bodsworth said the changes were about recognising the challenging economic landscape being faced by farmers and other businesses.
“Farmers have had an extremely difficult year due to the drought, and freezing rates for farm land at 2024-25 levels is one step we can take to ease financial pressure,” Mayor Bodsworth said.
“We also felt it was important to acknowledge that the drought has had flow-on impacts to other businesses in the shire, who were already feeling the effects of wider cost of living pressures.
“Adjusting the rating differential for commercial and industrial ratepayers is a way we can help in the short-term.”
Since the release of the draft budget, Council’s forecast income for 2025-26 has increased by $125,000 thanks to higher-than-expected Victorian Government grants commission funding.
Council voted to allocate this funding toward:
The final budget forecasts an operating result (Unallocated Cash Surplus) of $2.1 million.
This surplus will be essential in helping the Council fund the renewal of roads, buildings and other assets as they decline over the next 10 years.
Council has budgeted for a capital works program valued at $52.65 million, taking into account existing multi-year projects and new projects for 2025-26.
This figure includes projects funded with the assistance of the state and federal governments such as the Wurdi Baierr Aquatic and Recreation Centre in Torquay.
The budget also details Council’s commitments to core services such as open space, civil and road maintenance (with a total budget of more than $14.3 million), waste and recycling services ($13.06 million), early years ($4.53 million), and local libraries ($850,500 contribution to the Geelong Regional Library Corporation).
“The budget aims to support our community and set this region up to thrive in the years ahead,” Mayor Bodsworth said.
“There’s a strong balance between financial sustainability and investment in facilities and services our community values highly.
“There’s something in it for everyone – with initiatives to help protect and enhance the natural environment, generate economic activity, support community-led projects, and keep the community safe.”
The Draft Budget and Draft Revenue and Rating Plan were available for community feedback between 30 April and 26 May.
Community members were given an opportunity to speak directly to the Council at a budget submissions hearing on 3 June.
BUDGET SNAPSHOT – KEY DETAILS, FACTS AND FIGURES
Budgeted result (Unallocated Cash Surplus/Deficit):
We are budgeting for a $2.1 million Unallocated Cash Surplus.
Surpluses in 2024-25 and 2025-26 will prepare the Council for future years where rising costs and asset renewal requirements will create an increasingly challenging financial environment.
Services:
Budget allocations for key services we will deliver to the community include:
Capital works budget:
Capital works expenditure by category:
Capital works highlights (new projects for 2025-26):
Assets:
Asset renewal budget by category:
By the end of the 2025-26 financial year, Council will be responsible for the upkeep of $1.37 billion in property, infrastructure, plant and equipment.
Our annual asset renewal costs are expected to double over the next 10 years, from just over $10 million now to more than $21 million by 2034-35.
Other funding allocations of note:
Total average rate rise:
Rates are Council’s largest revenue source. The total average rate rise of 3 per cent, which is in line with Victorian Government cap, will help us cover the rising cost of delivering our services and projects.
Waste Service Charge:
The charges for 2025-26 are:
The waste service charge covers the rising costs of kerbside collections, waste disposal and recyclable material processing, public litter management, and the operation of Council’s resource recovery centres and the Anglesea landfill.
The figure has been impacted for 2025-26 by a 28 per cent increase in the Environment Protection Authority (EPA) Victoria waste levy. This money is paid to the Victorian Government.
Council is progressively aligning the Urban and Rural waste services charges over the next three years, which is why the Rural charge is proposed to increase more than the Urban charge.
Victorian Government’s Emergency Services and Volunteers Fund Levy
The Emergency Services and Volunteers Fund (ESVF) is a new levy introduced by the Victorian Government, effective from 1 July 2025. It replaces the previous Fire Services Property Levy.
Council opposed the introduction of the levy and publicly advocated for it to be abandoned by the Victorian Parliament.
However, councils are required to collect the levy and pass the funds on in full to the Victorian Government.
As such, it will feature on our 2025-26 rates notice as an additional charge.
Hardship:
Council’s Hardship Policy is in place to support ratepayers experiencing financial pressures.
Those experiencing hardship are encouraged to reach out for a confidential discussion by calling 03 5261 0600.
Fees and charges:
Fees and charges were reviewed with consideration of service costs, market competitors and local government benchmarking.
All fees and charges were listed in the draft budget for the community’s review.
Fees and charges frozen at 2024-25 levels include:
Areas with highest increases, updated to reflect actual costs to Council and heavily impacted by an increase in the EPA Victoria waste levy, include:
New fees and charges include:
Borrowings:
Debt levels remain manageable and well within our Borrowings Policy.
We are budgeting for no new borrowings in 2025-26 and will pay down around $2.2 million of debt, reducing total borrowings from $10.4 million to $8.2 million by the end of the 2025-26 financial year.
Financial sustainability and efficiency:
Council’s business reform programs have identified $320,000 in operational savings, which have been incorporated into this budget and will assist the Council’s ongoing financial sustainability.
Revenue and Rating Plan 2025-29:
The Revenue and Rating Plan determines the most appropriate, equitable and affordable revenue and rating approaches for Surf Coast Shire Council to apply.
The Revenue and Rating Plan 2025-2029 will see us continue using the Capital Improved Valuation methodology and a Differential rating strategy.
There will continue to be three types of rates, with a different ‘level of rate’ for each rating type:
This is in addition to a municipal charge and relevant service charge applied to all properties.
https://www.surfcoast.vic.gov.au/About-us/News-and-media/Latest-news/Council-finalises-2025-26-Budget