Moira Shire Council has released its draft budget for 2023-24, which includes the intention to increase total revenue collected from rates by 3.5 per cent, the highest allowed under the Victorian Government’s rate cap.
Council’s chief financial officer Matt Jarvis said the rise was in line with current economic conditions and stressed the 3.5 per cent increase would not be across the board for all ratepayers, and instead depend on individual property valuations.
“With the impacts of inflation far exceeding the rate cap, labour and contractor shortages and the 2022 flood event, we need to carefully balance community expectations with financial responsibilities,” Mr Jarvis said.
“This budget is to secure and strengthen our future so we can efficiently and effectively meet the needs of our community, not just for 2023-24, but for many years to come.”
Council is forecast to collect almost $87.7 million in total revenue in 2023-24, an increase of almost $20 million on 2022-23’s budget.
Of that, total income from rates and charges is expected to increase from $42.5 million to $44.7 million.
Total expenses, however, are only forecast to increase by just over $1.3 million, leaving council with an overall budget surplus of just over $29.5 million.
The draft capital works program of $42.2 million will focus on investing in council’s existing assets, with 60 per cent allocated on upgrade and renewal projects.
A further $10 million has been earmarked for flood recovery works across the shire.
“We will likely require not just one year, but perhaps two to four financial years to get through the existing backlog and deliver capital works, so for the next few years we need to focus on renewing existing assets, not creating new,” Mr Jarvis said.
The draft budget also shows that council plans to spend $15.3 million on the services that make Moira Shire a “welcoming and inclusive place”, $5.4 million on services to generate a diverse and dynamic economy, $15.8 million on services to achieve a clean green environment and $7.4 million on services that are customer-focused and responsive.
Shire finance manager Beau Mittner told council’s meeting on April 26, when administrator John Tanner approved the draft budget, that inflation of 7.8 per cent was “well above the rate cap of 3.5 per cent”. Planned increases in the superannuation guarantee, increases in insurance premiums and cost of living pressures being felt in the community were all factored into the draft.
Before the council budget for 2023-24 is agreed upon, Moira Shire Council is seeking public consultation and input at community sessions or online.
Face-to-face sessions will be held on Wednesday, May 17, at Nathalia Sports and Community Centre from 10.30am to noon and Numurkah Community Learning Centre from 2pm to 3.30pm. Sessions will also be held the following day at Yarrawonga Town Hall from 10.30am to noon and Cobram Civic Centre from 2pm to 3.30pm.
To be considered, all feedback must be received by council by 4pm on Friday, May 19.
The final budget will be prepared for council’s consideration at its meeting on Wednesday, June 28.