Draft Budget 2025-26 includes $27.5 million for capital works

Published on 21 May 2025

Moyne Shire Council’s 2025/26 budget shows it is in a solid financial position after successive years of prudent financial management. However, Council knows there will be challenges ahead.

The budget reflects the need to prepare for financial headwinds in future years, including continued inflationary pressure on goods, services and inputs such as construction materials, insurance and energy costs.

Highlights of the 2025/26 budget include:

Operating surplus (accounting result) of $0.79 million.
Underlying surplus of $1.34 million.
A capital works program of $27.5 million.
Asset renewal ratio of 156%.
Total operating expenditure of $66 million.
Cash and investments of $11 million inclusive of council reserves.
Working capital ratio of 1.39 current assets to 1.0 current liability.
The budget is in line with the state government’s Fair Go Rates System introduced in 2016 which caps annual rate increases by Victorian councils. In 2025/26, that cap is set at 3.00%.

In addition to rates, other revenue sources include state and federal government grants, and user fees from Council’s business units, including the Mount Shadwell Quarry and six caravan parks.

Mayor, Cr Karen Foster said Council has been and will continue to be challenged to maintain services amidst this difficult financial environment.

“The budget presented achieves a balanced financial result developed through a process of consultation and review with input from our community,” said Cr Foster.

“Conscious of cost-of-living pressures, Council has elected to freeze the waste facilities service charge at its current level,” she said.

The budget provides the financial resources to support the outcomes set out in the 2025-2029 Council Plan. Council is on track to deliver a second consecutive year of strong capital planned project completion with $3.6 million of projects carried forward from 2024/25, as well as $22.3 million towards asset renewal to ensure that Council’s $682 million asset base is adequately renewed and upgraded.

Council’s substantial commitment to capital works will reach $27.5 million including $17.1 million on Council’s road and bridge network. Key works include:
Roads $13.0 million including road rehabilitation $7.5 million, resealing program of $2.3 million, unsealed road re-sheeting of $1.0 million and sealed road drainage improvements $0.17 million;
Koroit Streetscape renewal stage 3 works $3.0 million;
Bridges $1.1 million including our contribution to the Gipps Street Bridge $1.0 million;
Buildings $2.0 million including DC Farran Recreation Reserve female change facilities $0.9 million, Woorndoo Recreation Reserve facilities upgrade $0.1 million, and annual building renewal program $0.98 million;
Town drainage works $0.63 million;
Gardens Caravan Park electrical upgrade $0.5 million.

Council has applied for grants to urgently replace the Gipps Street Bridge in Port Fairy but is yet to secure funding. Council is currently awaiting the outcome of the application made to round 2 of the Safer Local Roads and Infrastructure Program funding stream.

“Replacement of the bridge is beyond Council’s means should our attempts for funding support be unsuccessful. With this in mind, Council has reluctantly made application for a loan facility for up to $10 million to be accessed across the coming two financial years. Should we require this loan, an operating deficit is expected in 2027/28 as a consequence. Our expectations are that the budget will revert to a surplus in 2028/29,” said Cr Foster.

“Moyne Shire Council will continue to review how it delivers its services and to drive innovation and efficiency gains to sustain its operations, mindful of the vast area and communities that it serves,” she said.

“This draft budget presented achieves a balanced financial result and commits to delivering services for our community in a way that represents best value for ratepayers' dollars.”

Council has also released its draft Revenue and Rating Plan 2025-2029 for community feedback. The Revenue and Rating Plan provides an outline for how Council will generate income to deliver on the Council Plan, services and capital works programs over the next four years.

The Plan explains how Council calculates the revenue needed with respect to each revenue source and provides transparency on these decisions to the community.

Cr Foster said the draft Budget and draft Revenue and Rating Plan can be viewed online at the Engage Moyne website or at a Council Customer Service Centre in Mortlake or Port Fairy.

People making a submission can also indicate if they wish to present that submission to a Councillor workshop to be held on 17 June 2025.

Feedback will be accepted until 4pm, Wednesday 11 June, 2025.