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$5.78 million deficit touted in Campaspe Shire’s draft budget
Campaspe Shire Council is forecasting a deficit of $5.78 million in its 2023-24 draft budget.
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The draft budget was endorsed by council on Monday night and is now open for community feedback until June 1.
The deficit was not the only talking point, with council proposing an average rate increase of 3.5 per cent, a figure in line with Victorian Government rates capping constraints.
Total revenue in the 2023-24 draft budget is $86,296 million, with close to 50 per cent coming from rates.
The budget states the revenue to be raised by rates in 2023-24 is $42.8 million, which includes $200,000 generated from supplementary rates and represents an increase of $1.4 million from 2022-23.
Total expenditure in the 2023-24 draft budget is $92,186 million.
That expenditure includes $34.6 million on employees (a total of 354.28 people), a capital works allocation of $27.4 million to deliver infrastructure and $23.2 million on depreciation.
Campaspe Shire Mayor Rob Amos said the draft budget had been a challenging one given the impacts of the October 2022 floods that followed closely on from the COVID-19 pandemic and its uncertainties.
“Budget planning reflects a commitment to long-term financial sustainability and while we are planning to incur a deficit budget for the next few years, we are prioritising areas where our community has strongly advocated for improvement, with a firm focus on reviewing services for value and efficiencies,” Cr Amos said.
“Dealing with extreme weather events is something we have sadly had to learn a lot about and we are committed to supporting people to resume their livelihoods as well as plan for the future.
“That comes with expenditure on recovery and rebuild efforts.”
The deficit was the major talking point of the council meeting, which was completed within half an hour.
Kyabram Deakin Ward councillor Daniel Mackrell said despite the upcoming deficit, the council’s financial outlook appeared positive.
“While the council is experiencing a deficit, over the next four years the shire will receive an additional $20 million and see staffing levels return to normal levels,” Cr Mackrell said.
Western Ward councillor Leanne Pentreath pinpointed a possible area for further efficiency in relation to the budget.
“While we are in a financial deficit, the council should prepare to make roadwork operations in-house (over an external contractor),” Cr Pentreath recommended.
Rochester Ward councillor Paul Jarman offered his view.
“(A deficit of) $5.8 million is a significant amount,” Cr Jarman said.
“But we are investing heavily in works relating to roads, parks and gardens, along with investment in tippers and graders.”
Key commitments in the council budget are as follows:
• $15.2 million on road improvements, footpath replacement, repairs and kerbside replacements, including new plant and equipment;
• $3.2 million on the Echuca aerodrome upgrade;
• $1.9 million on storm water and flood control;
• $1.7 million on community and recreational enhancements including the Echuca east redevelopment and the final stage of the Rushworth Waranga Trail; and
• $1.1 million on improvements to playgrounds, parks, gardens and recreation facilities.
A total of $9.86 million has been allocated to renewal and priority works across Campaspe Shire’s road network, comprising 1100km of sealed, 2051km of gravel and 867km of earth-based roads.
The budget also includes an increased allocation of funding to a number of tree management programs to ensure best practice tree management and to mitigate potential risks associated with trees in public places.
Council’s cash and investments are expected to decrease by $13.9 million during the year to $79 million as at June 30, 2024.
The budget states that this reduction will fund the budget deficit of $5.78 million and the balance will fund carried forward capital works from previous years.
Projections are for the cash and investments to reduce over further years as capital works are completed and council renews assets required to deliver services.
The budget is aligned to the Council Plan 2021-2025 and introduces resourcing to deliver both existing and new strategies, including:
• an economic development and tourism strategy;
• a cultural diversity strategy;
• a customer service strategy;
• development of township facilities plans for towns which have had their place-based plans endorsed by council;
• an emissions plan to assist in the implementation of council’s environmental strategy;
• a library services strategy; and
• additional grant opportunities for community houses and an increase to Department of Energy, Environment and Climate Action halls and Campaspe libraries.
Cr Amos said the community’s feedback on the draft budget was now a pivotal part of the process.
“Preparation of the annual budget is one of council’s most important strategic responsibilities,’’ he said.
“It’s now time for the community to tell us whether we have the balance right and I encourage members of the community to review the proposed 2023-24 budget and provide any feedback they would like council to consider prior to formal adoption of the budget in June.’’
You have until 5pm on Thursday, June 1, to make a public submission on the budget.
All submissions must be in writing and can be made via an online form on the Campaspe Shire Council website or email cs@campaspe.vic.gov.au
A copy of the draft budget can be found at www.campaspe.vic.gov.au