Hepburn Shire releases draft 2023-24 budget

Residents in a central Victorian shire can expect higher rates and waste charges, and Airbnb properties may be more regulated under the proposed budget.

There are rising costs in the proposed Hepburn budget. Picture: Daylesford Macedon Ranges Tourism

Hepburn Shire residents can expect higher rates and waste charges in the coming financial year as their local council seeks to manage “delicate and challenging” circumstances.

Hepburn Shire Council has released its 2023-24 draft budget for public consultation.

It indicates an average rates increase of 3.5 per cent in line with the state government cap, and an average increase in annual waste charges of 6.2 per cent – roughly an extra $35 per property.

“The budget has been prepared in one of the toughest financial environments in recent history,” Mayor Brian Hood said.

“Our shire has been significantly impacted by the COVID pandemic, multiple extreme natural disasters, rising inflation and interest rates, sector-wide shortages of construction contractors and extraordinary increases to material and construction costs.

“We have sought to deliver a fiscally responsible budget that aims to achieve actions in

our council Plan, whilst balancing available resources and community expectations.

“We are in a delicate and challenging financial position which we will continue to manage prudently.”

Included in the draft budget is $30,000 for a review into increased regulation of short term accommodation, such as Airbnb.

The council’s chief executive, Bradley Thomas, said the council wanted to find a balance between providing for short-term visits in tourism hot spots and helping with long-term housing affordability.

“We’ve had a situations where people have got jobs in the shire but haven’t been able to secure housing,” he said.

“It’s trying to get the balance right there.”

He said the review may look at, for instance, short-term accommodation owners paying a fee to the council.

Overall, the budget totals $59m, with an expenditure of $48.3m — 10 per cent more than the previous year — and nearly 39 per cent of revenue coming from other levels of government.

If the budget is adopted, $6.5m would be spent on storm recovery works.

By June 2024, recovery from storms in 2021 and 2022 is expected to cost the council $20.8m, though that cost is to be ameliorated in large part by government grants, bringing the council’s net cost to $2.5m.

There is expected to be $5.9m in new borrowings, $1m of which would be for stage one of the Daylesford Town Hall refurbishment, and the rest for Creswick mountain bike trails.

More money will be spent on staff operating expenses — an additional $1.48m than 2022-23 — despite a drop of about 17 FTE staff because of an increase in superannuation, employees’ enterprise agreements, and the need for storm recovery contractors in 2023-24.

That cost is expected to decrease in the following three years as certain contactors are no longer needed and staff numbers slightly decrease.

$19.5m to be spent on capital works would include:

– $5.9m for Creswick Trails

– $3.2m for renewal of Wheelers Bridge in Lawrence

– $2.73m for renewal and resealing of roads

– $2.02m for Trentham Community Hub

– $1m for stage one of Daylesford Town Hall remediation works, plus $200,000 for planning of staff accommodation and Birch Ward infrastructure

– $150,000 for design of Glenlyon Recreation Reserve Pavilion

– $100,00 for design of Clunes Recreation Reserve Masterplan

– $70,000 for portable sound systems for council buildings

– $140,000 for Trentham and Drummond tennis courts remediation

Other expenditure includes:

– $2m for statutory and planning

– $130,000 for cyber security

– $30,000 for a review into increased regulation of short term accommodation

– $275,000 for footpath improvements and extensions

– $60,000 to finish the Integrated Transport Strategy regarding walking and cycling policies

– $60,000 to finish the Indoor Aquatics Provision Feasibility Study and Business Case

Residents may make submissions about the budget up until 5pm on June 8.

The council will consider the budget at a meeting on June 27.