Hepburn Shire Council to increase rates by 10 per cent after Essential Services Commission approval
A central Victorian shire has got the green light to increase its rates by 10 per cent next financial year in order to avoid financial collapse.
Ballarat
Don't miss out on the headlines from Ballarat. Followed categories will be added to My News.
Rates will increase by an average of 10 per cent in a central Victorian LGA after a cash-strapped council received permission to more than double its cap amid a $4m shortfall.
The Essential Services Commission on Monday approved Hepburn Shire Council’s application for a 7 per cent rate cap increase to the existing 3 per cent cap for 2025/26 to deal with “unsustainable” finances.
It means Hepburn Shire ratepayers will be slugged an extra $114 a year on average, or $2.20 a week per property.
The tourism-reliant shire applied for the change in March in an effort to survive with insolvency and an “inability to fund essential services” looming.
It came after the council spent millions maintaining multiple town halls and lost more than $5m in a debacle involving The Rex theatre in Daylesford, all while residents grappled with the cost of living.
In its decision, the ESC said Hepburn Shire had properly engaged with its community and had “adequately considered the trade-offs between increasing rates, service cuts and its financial position”.
But it said it could not take into account past “poor decisions”, citing The Rex redevelopment and spending on consultants and non-essential capital projects.
“We must consider the information that is in front of us, based on the council’s current circumstances and we don’t revisit previous council decisions,” it said.
“We are satisfied that Hepburn has appropriate policies and processes in place to ensure the efficiency and value for money of its spending going forward.”
An analysis used as part of the commission’s decision said the council was “clearly living beyond its means” between 2018 and 2024.
CT Management Group, which completed the evaluation, also said it considered Hepburn Shire’s opening cash balance for 2025/26 to be $4m overstated, which, if true, means it would take longer for the council to get its cash supply back into the black.
Hepburn Shire mayor Don Henderson said the one-off rate variation would allow the council to acquire an additional $1.36m, to be spent on necessary services and infrastructure alongside $2.53m in savings in the draft budget for next financial year.
“Without this approval, additional service cuts would have been required,” he said.
“Maintaining financial sustainability is challenging for most councils, especially rural councils like ours.
“Our current financial position has been impacted by a range of factors including very limited alternative revenue streams to rates, a relatively small and dispersed population and responding to natural disasters.
“We are a low rates council compared to Victorian averages and have sustained a rate cap well below cost increases and CPI.”
The 2025/26 draft budget will be considered for community consultation at a council meeting on Tuesday.
Rates notices are expected to be sent out in July.
Family erupts in applause as Hannah McGuire’s killer changes plea, admits murder
Lachlan Young has dramatically changed his plea midway through his trial, pleading guilty to murdering his ex-girlfriend, Hannah McGuire.
From nude calendars to eight flags: Country legend celebrates game 500
Tatyoon’s Tim Barr will celebrate his 500th game for the club this weekend. He talks through the highs, lows, the nude calendars and the one last goal he will tick off on Saturday.