A three per cent rate rise in line with the State Government rates cap and a $74 million capital works program were part of the final budget adopted by Cardinia Shire Council last week.
The budget is the new council's first budget and strives to reflect key community priorities identified during the engagement process for development of the new 2025–29 council plan.
Mayor Jack Kowarzik said council had worked hard to develop a budget that aligned with community aspirations, responded to community needs and ensured responsible management of council resources.
"Council's 2025-26 budget strives to deliver the services, projects and infrastructure our community needs, while ensuring we remain financially sustainable in the long-term," Cr Kowarzik said.
"We recognise the ongoing cost of living pressures facing our community, and we are committed to keeping rates and charges as affordable as possible while continuing to deliver essential services and projects."
Choosing not to apply to the Essential Services Commission (ESC) for a variation on the rate cap, council adopted a three per cent rate increase.
"The local government sector continues to face significant financial sustainability challenges, including the rate cap, increased costs to deliver projects and services, underfunding of developer contributions and infrastructure contributions plans for growth councils, and cost shifting from other levels of government.
"We're also concerned about the impact on our community, especially local farmers, as a result of the Emergency Services and Volunteers Fund (ESVF) legislation, which will require councils to collect the levy on behalf of the State Government through the annual rates notice.
"Council is budgeting for a $3.4 million adjusted underlying deficit, which includes borrowing $17 million to support investment in the capital program for asset renewal. Overall, Cardinia Shire's debt position remains low, reflecting council's responsible financial management to date," Cr Kowarzik said.
The mayor said a key focus of the budget was renewal of existing assets through the capital program to ensure assets continued to support the needs of a growing community into the future.
"Cardinia Shire is one of Victoria's fastest growing municipalities, welcoming an average of three new households to our shire every day. We're also an incredibly diverse shire, with more than 800km of unsealed roads and nationally significant farming areas.
"With our current asset base valued at $3.1 billion, it's so important that we invest our resources carefully to ensure these assets are available for our whole community and that they stand the test of time," he said.
The 2025–26 budget included $74.2 million towards a number of significant capital works projects. Of this $55.6 million will be allocated for asset renewals and upgrades, while $18.6 million will help fund construction of new and expanded assets.
Council also adopted the Revenue and Rating Plan 2025–29, which outlines the most appropriate and affordable revenue and rating approach for council over the next four years. The plan provides strategic guidelines for use in developing council's budget, financial plan and other strategic planning documents.
Cr Kowarzik said over the next 12 months, council would review its rating strategy so that it could ensure rates contributions were appropriately distributed across the community.
News
Cardinia adopts budget- $74m capital works
Jun 24 2025
2 min read
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