Surf Coast draft budget passes, despite hesitancy over rate rises

Surf Coast Shire’s draft budget passed unanimously, despite hesitancy over prescribed rate rises.

Surf Coast Shire Council has endorsed its 2023-24 draft budget, but not without debate over prescribed rate raises.

Surf Coast Shire’s draft budget passed unanimously on Wednesday night, despite hesitancy from some councillors over prescribed rate rises.

The budget is now out for public comment and feedback, and forecasts an $18m loss for the shire as it rolls out a record capital works program.

However, councillor Gary Allen said the budget gave the shire a solid footing for the years to come.

“Despite the many challenges we face, including our growing population, the rapidly rising cost of construction and the uncertainty of the supply chain, our officers have provided us with a solid framework with which to maintain a sustainable financial position,” he said.

Mr Allen noted that the council’s proposed rate increase of 3.5 per cent – the maximum under the state’s current rate cap – was half the current inflation rate.

“Our expenses are increasing at double the rate of our income,” Mr Allen said.

The rate rise would mean the shire would not have to take out any new loans in 2023-24, a satisfying factor for Mr Allen.

Councillor Adrian Schonfelder proposed an amendment that would keep rate increases to three per cent.

Mr Schonfelder said while he supported the draft budget, he did not support the full rate increase.

“I doubt the incomes of people and ratepayers within our council would have increased at the inflation rate,” he said.

“People who have businesses, many of the costs they have increased substantially as well... I feel as though we’re adding to that.”

Mr Schonfelder’s sentiment was echoed by councillor Paul Barker who described rate increases as “an addiction that cannot be stopped”.

In 2023-24, the average base rate per assessment in the shire would be $2163.28, up $40.45 from the 2022-23 financial year.

The capped average rate will be $2238.99 in 2023-24, an increase of $79.01 from the previous year.

Surf Coast mayor Liz Pattison struck down the amendment, citing the fact it had “really significant implications” for the budget and encouraged Mr Schonfelder to instead propose an alternate motion.

“We would not be able to release the budget for consultation because the whole budget would need to be reprepared,” she said.

Councillor Heather Wellington noted the draft budget vote was to put it out to the community for feedback.

“Of course there are items in this budget that I think are completely unaffordable,” she said.

“We need to have a conservation with (the community) about what we do.

“You can’t just take 0.5 per cent off the rate rise and say ‘we’ll have an extra bit of debt’ — that debt costs money to service, you can’t just leave it for another generation.

“But I do want to hear from the community if they want lower rates (and) what they would like us to cut.”

Shire mayor Liz Pattison said she was pleased to see an environmental focus in the budget.

“A green theme is evident in the budget, as we transition to a circular economy and continue our carbon neutrality program,” she said.

“We’ve witnessed severe weather events recently and to prepare for more of these, we are investing in emergency management, assets and engineering, and open space operations.”

HOW YOUR RATES WILL BE SPENT

If the draft budget is adopted, the shire will roll out a record $36.4m capital expenditure program, $16.3 million of which is allocated to new projects.

A total $15m has been allocated to deliver road upgrades, maintenance and renewal across the shire.

Scroll through the table below to see the projects budgeted in the shire’s capital works and renewal programs.

Total staff expenditure is expected to rise by $4.7m in 2023-24, from $38.4m in 2022-23, to $43.1m in 2023-24.

The number of staff employed by the shire will also increase, from 346.2 full-time equivalent staff, to 369.9.

The shire’s draft budget also included a fee schedule, indicating how much fees and costs to residents will rise across the next financial year.

Scroll through the table below to see the full list of changes.

Originally published as Surf Coast draft budget passes, despite hesitancy over rate rises