Council focus on strong financial outcomes with 2025/26 Budget
Published on 12 June 2025
Southern Grampians Shire Council adopted the 2025/26 Budget, Long-Term Financial Plan 2025 – 2035 and 2025/26 Pricing Register at last night’s ordinary Council meeting.
Southern Grampians Shire Council Mayor Dennis Heslin said financial sustainability and strong financial stewardship across the next decade is a key feature in the budget.
“Council has completed a significant amount of work to reduce operational costs over the last four budget years,” said Cr Heslin. “This targeted approach on cost reduction and Council’s commitment to finding sensible efficiencies ensures Council will be in a strong financial position for the next decade and will allow for the delivery of our three major projects.
“We know setting the Council Budget is a challenging task in aligning community expectations with balancing rising construction and operating costs in a constrained, revenue raising environment.
“Despite these difficulties, this Budget will see the renewal of existing assets and the continued delivery of services to the community as well as progressing our intergenerational projects.
“We have continued our commitment in maintaining and improving the quality of our community assets by investing $131 million across next 10 years in the Long-Term Financial Plan (LTFP). We’re spending more than we have ever have on ensuring our assets like Council managed roads, footpaths, playgrounds, public toilets, sporting facilities and drainage are kept in good condition.”
Council called for community submissions prior to the drafting of the budget late 2024, which saw 31 community submissions received, with Council including a number of these priorities in the 2025/26 Budget.
“Community submissions provide Council with a clear understanding of what is important to our community. These projects have a very real and positive impact directly improving the liveability for those that call the Southern Grampians home,” said Cr Heslin.
“Since moving to earlier budget engagement, we’ve seen higher engagement rates across the community with 34 community submissions in 2023/2024 and 31 in 2024/2025.”
Gathering community feedback at the beginning of the budget process allows the community submissions to influence the budget outcomes and for the budget to be more community led. Under the previous Local Government Act, the budget was released as a draft at the end of the budget build therefore limiting the tangible impact the budget submissions could have on the adopted budget.
Key community projects forming part of the $16.255m capital works will see:
- Footpaths links added in Cavendish, Coleraine, Dunkeld, Hamilton and Penshurst
- Renewal of public convenience fixtures, fittings and painting,
- Penshurst Botanic Gardens Shelter Renewal
- Wannon Scenic Reserve purchase and installation of BBQ's
- Installation of fans on multipurpose courts at HILAC
- Two vouchers for free green waste disposal per rateable property
- Lakes Edge Playground fencing
Additional funded initiatives in this budget include:
- Road Safety Improvement Program across the shire
- Procurement of a Southern Grampians Shire Council mobile app
- Build of hardstand at the Hamilton Transfer Station to support onsite Organics processing facility
This budget provides a clear pathway to the delivery of three major Council projects - the CBD Streetscape; Our new Community Hub on Lonsdale Street, that includes among other things a new Library and Digital Hub; and a new Hamilton Gallery, which we know will help develop our visitor economy.
Detailed design of both the new Hamilton Gallery and Community Hub is set to progress with $1million allocated each of the two projects. The redevelopment of the Hamilton CBD streetscape will also progress, with $400,000 allocated for design. These designs will move forward using grant funding – not rate payer money making these projects shovel ready and eligible for grant programs to fund construction in the future.
Council has proposed a 3% rate increase, consistent with the rate cap set by the Minister for Local Government which will see $24.906 million collected in rates and charges.
The municipal waste charge will increase from $415 to $430 (3.6%) for all improved residential properties in the Hamilton, Balmoral, Branxholme, Byaduk, Byaduk North, Cavendish, Coleraine, Dunkeld, Glenthompson, Penshurst and Tarrington urban areas and “refuse collection areas” for the collection and disposal of refuse, recycling and FOGO.
The increase on 2024/2025 service charge reflects the rising costs to Council to dispose of waste and highlights the importance of recycling. Council charges are below the charges imposed by the majority of neighbouring Councils including Moyne, Northern Grampians and Warrnambool.
The Long-Term Financial Plan has included delivering a surplus in nine of the 10 years, with borrowings to largely be repaid within the next 10 years.
Mayor Heslin said Council has undertaken a forensic level inspection of all operating costs, challenging every dollar using a zero-based budgeting approach.
“Every one of the 10,000 individual lines in our ledger system have been scrutinised and justified with the fundamental question, is this the smartest, cheapest way that this can be achieved? We’ve been working to reduce employee costs which are rising by only 0.51%.
These have come down significantly from 2021/22 when they were 45.37% of total revenue to 36.72% in this Budget which is an 8.65% reduction.
“The average of the other four Councils in our regional group is a 4.60% rise and an average of 41.65% of total revenue – this is a measure we can be really proud of and really demonstrates how prudent this budget is.”
Council continues to try and find ways for residents to have the best financial outcomes so will continue to offer the prompt payment incentive (2%) for the 2025/2026 year and also encourage ratepayers under financial strain to apply for hardship provisions. Council has also strengthened its hardship policy and welcome residents to reach out to the Finance Team who are currently struggling to pay their rates for a confidential conversation.
“In the current climate and with such significant change to the Emergency Services Volunteer Fund, the focus for Council is to assist ratepayers that are experiencing financial stress to have options,” said Cr Heslin.
“We know the new Levy will have a significant impact on our region. We will continue to loudly advocate against and oppose its introduction,” concluded Cr Heslin.
A copy of the adopted 2025/26 Council Budget is available via the Council website.