Budget

The Council Budget is an integral part of Council’s overall strategic planning framework and resources the directions in the Council Plan. It focuses on delivering quality services to the community through a combination of existing programs, new initiatives and capital works. The Council Budget is integrated with the Long Term Financial Strategy, Long Term Infrastructure Plan and the Rating Strategy. 

Click here to download the Annual Budget 2021/22 in full.(PDF, 2MB)

Click here to download a printable fact sheet outlining the Council Budget 2021/22 key points.(PDF, 307KB)

The 2021/22 budget is for the year 1 July 2021 to 30 June 2022 and is prepared in accordance with the Local Government Act 1989 and Local Government (Planning and Reporting) Regulations.

The budget includes the following financial statements:

  • Comprehensive Income Statement
  • Balance Sheet
  • Statement of Changes in Equity
  • Statement of Cash Flows
  • Statement of Capital Works

These statements have been prepared for the year ending 30 June 2022 in accordance with the Act and Regulations, and are consistent with the annual financial statements, which are prepared in accordance with Australian Accounting Standards.

The budget also includes information about the rates and charges(PDF, 154KB) to be levied, the capital works program to be undertaken, the human resources required, and other financial information Council required in order to make an informed decision about the adoption of the budget. 


Budget Highlights

You've told us what's important to you and we've listened. Following consultation with the community, significant investment has been made in important local projects and infrastructure. You can also download a printable summary of the community projects being funded here.(PDF, 575KB)

You can see what's being funded below. 

Community Budget Submissions

In accordance with Council’s Community Engagement Policy, Council invited submissions on the Draft Annual Budget 2021/22 and Draft Revenue and Rating Plan 2021/22.

The documents were on display from 15 April 2021 to 13 May 2021.

Council received 155 submissions, which provided a range of feedback for Council to consider.

The main themes raised in the submissions included:

  • Sports and Recreation Reserves
  • Community Infrastructure
  • Roads and Footpaths
  • Community Services
  • Community Planning
  • Environment

A total of 40 submitters spoke in support of their respective submissions at the Council Meeting on 19 May 2021. All submissions were considered.

Council approved a total of $854,000 submissions for inclusion in the final 2021/22 Annual Budget, on the basis of their alignment with the Community Vision and Council Plan and being within the allocation of available Council funds. The project funded include:

  • $17,000 for improvements to the cross country course at the Baw Baw Equestrian Centre.
  • $15,000 for relocatable change rooms at Baxter Park in Warragul.
  • $65,000 for upgrade to drainage and fencing at the Burke Street Netball Courts in Warragul.
  • $50,000 towards a Sinclair Street pedestrian cross to accommodate Drouin Primary School users.
  • $60,000 for seating and shelters at Eastern Park in Warragul.
  • $80,000 for the design of a synthetic track and lighting at the Geoff Watt Track in Warragul.
  • $25,000 for a footpath between Mills Road and Twin Ranges Drive in Warragul.
  • $100,000 for the design of a pavilion at the Longwarry Recreation Reserve.
  • $90,000 towards the design of oval upgrades at the Longwarry Recreation Reserve.
  • $60,000 to add an additional town to the placemaking program.
  • $20,000 towards seating and signage along the Rawson-Erica trail.
  • $122,000 for art and lanscaping works at Rotary Park.
  • $10,000 to install bollards in Walhalla.
  • $30,000 to design dry ares spaces for swimming groups at the Warragul Leisure Centre.
  • $50,000 for seating at Western Park in Warragul.
  • $60,000 for the design of the Yarragon streetscape vision.

 

Infrastructure

Council continues its major investment in infrastructure totalling $38.7 million (plus any projects not finished from the current financial year) comprising of the following:

Key strategic projects - $15.2 million

  • $6.0 million for Warragul Indoor Stadium – Stage 1
  • $2.25 million for the Rokeby Noojee Trail project
  • $2.0 million for the Multi Use Pavilion at Bellbird Park, Drouin
  • $1.7 million for the completion of the Trafalgar Recreation Reserve Multi Use Pavilion
  • $1.53 million for the accelerated footpath program

Infrastructure renewal - $16.9 million

  • $3.2 million on road reconstruction and resealing to address poor road conditions
  • $1.6 million on localised pavement repairs
  • $1.5 million for gravel road re-sheeting works
  • $1.2 million on plant and machinery
  • $0.8 million for bridges and major culverts

Infrastructure general works - $6.5 million

  • $1.5 million for black spot program works
  • $1.5 million for Drouin streetscape improvements
  • $1.1 million for Warragul CBD streetscape works
  • $0.8 million for land acquisition
  • $0.6 million for masterplan implementation

To see the full list of projects funded for 2021/22 view our capital works program.


More Information 

To learn more about the Budget, including information about operating expenses, rates and more, please select from the drop down menus below. 

Operating Budget

The 2021/22 Annual Budget represents income of $111.3 million, expenditure of $90.6 million, resulting in a surplus of $20.8 million.

The $20.8 million surplus is then converted into an adjusted underlying result that better reflects Council’s level of financial sustainability. The underlying result is based on the surplus that then excludes non-recurrent infrastructure grants and capital contributions from other sources, to arrive at the adjusted deficit of $2.61 million.

The deficit reflects a financial position consistent with the current rate capping environment of 1.5 per cent, within a rapidly growing Shire.

Operating expenses

Council’s annual expenses are expected to increase by 3.4 per cent.

Employee costs are expected to increase by $2.86 million, or 9.28 per cent. An increase is primarily due to a small increase in approved employee positions due to a change in service delivery requirements, salary increases in order to comply with Council’s Enterprise Bargaining Agreement, individual employee progression within salary band levels, and costs associated with exiting aged and disability services. Depreciation expenses have not increased.

Revenue has increased by $9.3 million, or 9.2 per cent, largely due to additional capital grants of $6.4 million, and additional rates revenue of $2.2 million. Operating grants are lower, mainly due to an expiring Emergency Management grant in the prior year and the exit from aged and disability services, whilst West Gippsland Art Centre revenue is expected to return to pre 2020/21 levels due to COVID-19 restrictions being lifted.

The budget includes new operating initiatives with a net cost of $1.6 million. This includes several key strategic initiatives – a roads advocacy campaign, a depot feasibility study, and Environmental Sustainability Strategy and additional funds for maintenance of local halls and residences.

There are also a number of new fixed term or recurrent positions, the majority of which are required to sustain existing growth in services, or to meet new legislative requirements such as family safety. Some of these positions are partially or totally self funding.

Rates and Valuations

Click here to download the Baw Baw Shire Rating & Rating Plan 2021-22.(PDF, 718KB)

The rate increase is capped at 1.5 per cent in line with the Victorian Government’s Fair Go Rates System (FGRS). Rates are calculated as a percentage of the Capital Improved Value (CIV). The 1.5 per cent increase applies to the total rates revenue received by Council, not to individual ratepayers.

Total revenue from rates and charges for 2021/22 is $65.3 million (including supplementary valuations and interest on rates and charges).

For further details please refer to the Rates and Valuations fact sheet.(PDF, 154KB)

Fees and charges

Existing fees and charges are to be increased in line with Consumer Price Index (inflation) or market levels, on average at 1.5 per cent.

Financial Sustainability

A high-level Strategic Resource Plan for the years 2020/21 to 2023/24 has been developed to assist Council in adopting a Budget within a longer-term prudent financial framework.

The key objective of the plan is financial sustainability in the medium to long term, while still achieving Council’s strategic objectives as specified in the Council Plan.

The adjusted underlying result, which is a measure of financial sustainability, results in a deficit this year due to the rate capping environment.


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