Sport the winner in Baw Baw draft budget with 1.5 per cent rate rise

Major sporting facility developments and millions of dollars of roadworks are highlights of a draft budget presented to Baw Baw Shire Council last week.

The draft budget, approved in principle by council ahead of a four week community consultation period, presented a capped 1.5 per cent rate rise.

Rate revenue is expected to be $55 million in the budget of $112.4 million income and $90.9 million expenditure.

A $38.9 million capital works program is proposed, with the most significant component being $11 million to be spent on roads.

Of the $38.9 million, $16.46 million will come from council operations, $15.56 million from capital grants and $3.05 million of contributions from developers, with the balance funded by other contributions and new borrowings.

Recreation and sporting facilities also will be winners, with the headline project being a $10 million new basketball stadium in Warragul if government funding can be secured.

Council also is committed to a $4 million multi-use pavilion at Bellbird Park after receiving news of a $2 million state government grant on Wednesday; and, $1.7 million will be spent to complete a pavilion at Trafalgar Recreation Reserve.

But, costs also will increase, with additional staff to be employed at a cost of almost $3 million.  The 15.25 full time equivalent positions have been justified as needed to meet increased growth and service demand.

Chief executive officer Mark Dupe said the $21.4 million surplus represented on the balance sheet is converted to an adjusted underlying result that better reflects council’s level of financial sustainability.

He said the adjusted result was a $2.96 million deficit.

“The deficit is due to rates being capped at 1.5 per cent, thereby limiting council’s ability to raise sufficient revenue in a growing municipality,” he said.

Mr Dupe said a key issue was the rate of residential growth in the shire and the impact of that growth on services.