Federation Council reviewed the first draft of the 2026/27 Annual Operational Budget at an Extraordinary Council Meeting held on 3 February 2026.
This initial line by line review provided Councillors with the opportunity to provide some direction to staff on key priorities, drawing directly from their daily interactions with the community. Work is now progressing to finalise the draft budget for presentation at the March Ordinary Council Meeting. This includes preparation of the draft 2026/27 Capital Budget, along with an updated draft 10 year Long Term Financial Plan, Revenue Policy, and the Operational Plan Actions. Together, these documents clearly outline how funding is proposed to be allocated across services, programs and projects for the 2026/27 financial year.
Council's budget is required to be managed across four separate funds, being the General Fund - which supports services such as roads, parks, and libraries, and then individual Water, Sewer and Waste Funds. The draft budget will continue to be developed in alignment with the community's vision outlined in the Future Federation 2040 Community Strategic Plan, and the principles of financial sustainability.
Council adopted at the December 2025 meeting, the overarching budget principles, as follows:
1. Strategic Alignment: Directly supporting the four-year Delivery Program.
2. Fiscal Responsibility: Ensuring financial sustainability by adhering to the Long-Term Financial Plan objectives.
3. Community Focus: Prioritising community needs and essential services, such as a safe and healthy community and well-maintained, planned infrastructure.
Federation Council Mayor, Cr Cheryl Cook, said this early review is a vital part of Council's commitment to transparency and responsible financial management.
"Reviewing this first draft in February gave Council the opportunity to provide early direction and ensure our spending aligns with responsible financial management to best meet community expectations before the formal plans are presented in March," Mayor Cook said.
"We are focused on a budget that is both financially responsible and prioritises our long-term capacity to deliver the services our residents need."
It includes an 11.8% increase in general rates, representing the final year of the approved Special Rate Variation (SRV) intended to fund critical road and building infrastructure renewal. Details of specific road and building projects will be presented in March.
Significant longer term planning work will continue across 2026/27 including for a new Howlong water reservoir to ensure a reliable water supply for the community, along with essential utility upgrades, and seeking part Government funding for other major renewals such as the Corowa Waste Water Treatment Plant, and proceeding with longer term planning for the replacement of the Mulwala Water Treatment Plant.
Mayor Cook said while the Council continues to make progress, its focus also remains on being transparent about the challenges ahead.
"Our current Long Term Financial Plan shows that without significant changes to income or expenditure, and maintaining similar service levels, unrestricted cash would be exhausted by 2032/33 unless a further Special Rate Variation was gained," Mayor Cook said.
"This makes our commitment to efficiency - such as reviewing service levels and improving the performance of council facilities more important than ever."
Council will now undertake further financial modelling and refinement based on the feedback provided during the extraordinary meeting.
The refined Draft Operational Plan and Annual Budget 2026/27 is scheduled to be presented for in-principle adoption at the March 2026 Council Meeting. Following this, the plans will be placed on public exhibition, providing the community with a formal opportunity to review the documents and provide feedback before Council consider final adoption.
Mayor Cook said Council encourages all residents to stay engaged as this process moves forward.
"Your feedback during the upcoming public exhibition period will be crucial in shaping the final budget for our region," she said.
