by Emma Ballingall

A $400,000 cut to a natural disaster recovery fund in favour of footpath and minor projects is the only significant change to Baw Baw Shire's 2025/26 budget.

The suite of budget papers, with a three per cent rate increase and phasing out of the pensioner rebate, was unanimously endorsed at Wednesday's council meeting.
Councillors reinforced difficult decisions were required to find savings and efficiencies, with more to come in future budgets.
"This council needs to make tough decisions because of the position that we're in," mayor Danny Goss said. "Financial sustainability for this organisation and our ratepayers is extremely important."
The three per cent rate rise is in line with the state government's rate cap. Waste charges also will rise from $464 to $554 for residential ratepayers, a 19.4 per cent jump.
Surcharges for vacant land have been scrapped under big changes to council's rating strategy. Whilst maintaining a differential rate system, there will be just three categories instead of seven - general/residential at the general rate, farm land at a discount of 20 per cent, and commercial and industrial land with a 30 per cent surcharge.
The budget projects a surplus of $23.6 million, compared to $20.4 million in 2024/25. The figure took into account forecasts of $138.1 million in total income and $117.8 million in expenses.
Features of the $46.5 million capital works program include design works for a pavilion at Longwarry Recreation Reserve and masterplan with an athletic track focus for Burke St and Logan Park sporting precincts in Warragul.
Attracting 23 written submissions and 13 council presentations, slight changes were made from the draft budget papers.
The newly added natural disaster recovery fund was dramatically slashed from $500,000 to $100,000. The officer report said the reallocation would see $250,000 set aside to respond to emerging minor capital works and $150,000 for footpath projects, all yet to be assigned.
Whilst no funds were allocated, line items for Trafalgar's second oval and Warragul athletics track renewal are now listed in the capital works program, signalling external grant applications may be in the pipeline.
Other alterations from the draft budget include a $3000 downward adjustment to total rates and charges revenue, which now stands at $81.6 million. This followed property valuations by the Valuer General.
The operating surplus increased slightly from $23.2 million to $23.6 million and the final capital works program from $46.1 million to $46.5 million.
Cr Kate Wilson described budget discussions with a new councillor group as "a challenging process" with "lots of questions and lots of ambitions."
She said community submissions for vital and urgent projects were made but "there is so much to do and, as we've discussed time and again, there is only a finite bucket of funds to work with."
Highlighting increases to community grants and footpaths, Cr Wilson said "even if your submission didn't make it into this budget, we've heard you and nothing has been lost."
Cr Paul Pratt said councillors had inherited the current financial situation but "we're here to fix it."
Although the budget lists a $23.6 million surplus, Cr Pratt said in reality this equated to a $3 million deficit after adjustments; "essentially we are spending more than we collect."
"We will continue to get more creative and think outside of the square...and think with a commercial-community clarity filter," he said, predicting "some tough calls like we already have."
Cr Tricia Jones highlighted projects allocated funding following community submissions.
She said these included $100,000 extra for community grants, $20,000 to expand an arts grant program, $5000 for Snowfest support, $5000 for a 12-month CASBE trial membership, $85,000 to resurface Drouin netball courts and $10,000 for a croquet fence at Drouin.
"Putting together a budget isn't just about numbers," Cr Jones said. "It's about balancing community needs, delivering essential services and planning for the future."
Cr Ben Lucas said he felt the budget was "a little bit clunky for my liking" and would look at "maybe changing up a few things" in future.
Cr Lucas highlighted updated pavilion planning at Longwarry as "a really good win for West Ward", "little unsung heroes" in the asset renewal budget and an allocation for Drouin bike jump park planning which could see the shire be "the mountain biking mecca of Victoria."
He said groups could learn from Drouin Netball Club who were willing to co-contribute on a court renewal project, noting "co-contribution really goes a long way in our decision making."
Cr Jess Hamilton said compromise was essential to deliver the best and fairest outcome for the municipality as a whole.
She asked the community to "keep their faith in this council group" as "we will strive to get better with each one that we do."
Cr Hamilton provided a snapshot of what councillors brought to the budget table. She described Crs Danny Goss and Pratt as the brains, Crs Suzanne Allen, Lucas and Jones were the heart, Cr Adam Sheehan as the strong silent type, and Cr Wilson as the knowledge of council processes. As for Cr Brendan Kingwill, she jested "I'm not sure 100 per cent what he brings yet" before adding he's the fun and brings the light, attracting laughs and applause.
Cr Goss extended high praise to the new councillor group and their growth in the past six months.
"The process has been the most enjoyable one certainly I've been involved in because of your passion, because of your can-do, want-to-do attitude," he said.
However, Cr Goss said council had hard work ahead to find an extra $4 to $5 million to get exciting projects done for the community.