AS this week’s Adviser was going to print on Tuesday, May 7, Greater Shepparton City councillors were meeting to discuss the 2024/2025 Draft Budget. At the end of last year, Council invited community input on the Draft Budget. A report has been prepared outlining key themes from the consultation and how the budget has been influenced.
Notably, due to financial pressures like the impact of keeping rates on hold for two years, historical rate caps below inflation, the impact of Covid and the October 2022 floods, the report said Council has less funds available to fund new assets or more services.
The 2024/25 Draft Budget operating position presented is an underlying operating deficit, stipulating that Council’s budgeted operating expenditure will exceed the budgeted operating revenues. This indicates financial stability issues that Council will need to address in forthcoming budgets.
The Draft Budget proposes a rate increase of 2.75 per cent, in line with the Rate Cap set by the Minister for Local Government. This increase will generate $82.4M in total rate revenue. A further $823,601 in supplementary rates, $533,000 in penalty interest and $12.1M in service charges takes the total rates and charges figure to $95.8M in revenue.
The proposed rating structure has been informed by the proposed 2021-2025 Revenue and Rating Plan, which includes removing the Derelict Land differential.
The proposed capital works budget of $64.8M includes $59.3M of new works and $5.5M of works re-budgeted from the 2022/23 capital works program. The program will be funded by $17.3M of grant funding and $36.3M of Council funding. Borrowings have been proposed for the GV Link Stage 1 project of $9.67M.
The $64.8M of new works includes the GV Link Stage 1 project, drainage projects, upgrades to the BMX facilities, delivery of community projects including the Cycling Precinct Velodrome Lighting Upgrade, Victoria Skate Park lighting, a new Tatura Skate Park, Wanganui Oval lighting and irrigation upgrades, and new playground and shade sails. As well as renewal of assets, decarbonisation initiatives, and delivery of projects relating to various Developer Contribution Plans as part of the municipality’s continued growth.
The projected revenue for the 2024/25 Draft Budget is $182.78M and operating expenditure is $162.09M, resulting in a $20.69M accounting surplus, with an adjusted underlying operating deficit of $7.9M.
While the proposed budget does not achieve a true underlying operating surplus, Council’s adopted 2021-2031 Financial Plan expects to achieve a surplus the year ending June 30, 2027.
After Tuesday’s meeting, public feedback will shape the final budget, slated for adoption in June. Check the Council’s website for updates.
