2% rates increase proposed

Council considered a number of rate scenarios including a zero rate rise as well as one and two per cent increases.

But, officers have advised council a zero or one per cent increase next financial year would have a significant long term impact on capital expenditure.

Officers said the impact of a zero or one per cent rate rise in 2020-21 would be a reduction in the budget of $1.042 million or

$500,000 respectively.

The cumulative impact over the next 10 years is estimated to be $11.4 million based on zero per cent in 2020-21 and two per cent thereafter; or, or $5.7 million based on one per cent in 2020-21 and two per cent thereafter.

Officers will present the draft 2020-21 annual budget, outlining a $33.7 million capital works program, which includes $30.2 million of new works and $3.5 million carried over from the 2019-20 financial year.

Key strategic projects include:

$2.9 million for a new synthetic soccer pitch for Baxter Reserve, Warragul;

$2.65 million to upgrade

Copelands Rd, Warragul;

$1.5 million to begin construction of a multiuse sections of pavilion at Trafalgar Recreation Reserve;

$1.5 million for an accelerated footpath program, in accordance with the paths and trails strategy 2019; and,

$500,000 to plan and design the Drouin Community Hub.

The proposed budget represents income of $98.3 million and expenditure of $85.6 million resulting in a surplus of $12.7 million.

Total revenue from rates and charges will be $62.6 million including $53.1 million rates, $8.9 million waste charges, $500,000 from supplementary valuations (new property additions) and $100,000 interest on rates and charges.

The two per cent increase relates to a two per cent increase in total rate revenue, not individual rates.

The report said the draft budget focussed on delivering quality services to the community through a combination of existing programs, new initiatives, and capital works.

“This budget aims to strike the balance between maintaining essential services, providing our community and businesses with some financial relief and preparing to contribute to economic stimulus when the threat of the COVID-19 pandemic has passed.

Officers listed the major challenges in preparation of the budget as supporting community and businesses during the COVID-19 pandemic, meeting the needs of the shire’s growing population, continuing to review its critical infrastructure renewal requirements and maintaining council’s overall financial position, within the constraints of the rate cap.