Campaspe Shire's new budget promises a surplus, but an underlying deficit raises questions.
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Campaspe Shire Council has green-lit a fiscal 2026-27 budget projecting a $9.65 million surplus, but an expected underlying deficit looms.
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The budget was pushed through at the June council meeting, with Mayor Daniel Mackrell commenting it was a financially responsible plan focused on delivering for the community.
“This budget has been shaped by what our community has told us matters ‒ strong infrastructure, quality services and planning for the future,” he said.
However, the council's adjusted underlying result ‒ which strips away one-off government grants and developer contributions ‒ reveals a $12.74 million day-to-day operational deficit.
To push its major infrastructure projects over the line, the shire remains heavily reliant on state and federal funding.
This deficit is forecast for the next three years.
General rates will increase by the maximum state government cap of 2.75 per cent.
The flat Municipal Charge will also increase, rising to $282.55 per property.
Compounding cost-of-living pressures, waste service charges have climbed by 9.6 per cent to cover soaring kerbside recycling and organic collection costs, while ongoing global conflicts have forced the council to inject an extra $290,000 into its own fuel budget.
To offset rising costs, an internal management restructure has slashed $1.6 million from the council's payroll by reducing the number of internal directors from four down to three.
While the strategy means Campaspe will technically be entirely debt-free by December 2026, the celebration will be short-lived.
The budget's forward outlook reveals a projected $18.1 million borrowing spree is locked in between 2027 and 2030 to achieve “intergenerational equity” as major projects get under way.
This year, however, most capital works will largely focus on the renewal of assets as advised in the community engagement for the budget.
Unlike previous years, the draft budget was not put on display for community members to put feedback submissions in for, instead council engaged a citizens panel for engagement.
Campaspe Shire Council chief executive Pauline Gordon.
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These citizens, representing different demographics and parts of the shire, were given a $100 expenditure to determine what the ideal budget would look like.
All priorities were given about an even dollar amount, about $10 to $11 each, with standouts of arts and culture receiving $7 and assets and infrastructure receiving $28.
The engagement confirmed that assets and infrastructure should be a priority.
Speaking with The Riv, council chief executive Pauline Gordon said, in line with this engagement, the budget had a focus on renewing their existing assets.
“We want the community to feel confident that we’re trying to maintain our assets at the standard they should be maintained at,” she said.
“When people are feeling the cost-of-living pressures, it’s really important to us that we are maintaining the assets that they are using to an acceptable standard.”
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