A new Financial Plan endorsed on Tuesday night sets out how Council will afford to deliver community services and maintain a growing list of facilities and infrastructure over the next decade.
The Financial Plan 2025-35 outlines a series of financial management principles and 'strategic levers' for Council, to help remain financially sustainable in the face of continuing economic pressures.
Council delivers more than 100 services and is responsible for an expanding asset base valued at around $1.3 billion.
The plan notes that factors such as rising costs, constraints on revenue, a growing population and ageing assets, as well as the upcoming closure and rehabilitation of the Anglesea Landfill, will present challenges in the years ahead.
Budget allocations for asset renewal are forecast to rise progressively from $11.6 million this year to $21.2 million by the end of the plan, while the cost of rehabilitating the Anglesea Landfill has been estimated at $12.6 million.
The plan forecasts that Council will deliver a cash surplus this financial year, followed by deficits in seven of the following nine years.
These will be accommodated through funding from the Future Cash Fund, which has a balance of $13 million in 2025-26.
Strategic levers to be considered by Council through yearly budgets and other financial decisions are grouped into six themes within the plan:
Financial Sustainability
Including rating levels, service costs, fees and charges, and debt management.
Service Reviews
Including the scope, quality and frequency of services, facility operating models (direct delivery or outsourcing), and savings opportunities.
Asset Management and Climate Impact
Including decisions about when, where and how often to renew assets, and choices around disposing of underutilised assets.
Advocacy and Partnerships
How to leverage funding from external sources, and empower community-led initiatives.
Growth Planning
Including setting Development Contribution Plans to provide necessary infrastructure.
Emerging Service Impacts
Including how the Anglesea Landfill closure and transition to a new waste operating model is managed.
Councillor Tony Phelps said the Financial Plan would support the Council in meeting the objectives of its new Council Plan 2025-29.
"We aim to be a high performing Council, and central to this is our financial sustainability over the long-term," Cr Phelps said.
"It's important that we're making decisions that consider both the current and future needs of the community.
"The financial plan gives us a strong framework for those decisions."
During Tuesday's meeting Council also released its results for the 2024-25 financial year, posting an operating surplus of just under $33.3 million – well ahead of the budgeted $8.8 million surplus.
The favourable result was largely driven by the level of capital grants received, the early receipt of 50 per cent of the federal government 2025-26 Financial Assistance Grant, along with non-monetary contributions.
The non-monetary contributions included handover of around $10 million in assets by developers, becoming Council's responsibility to maintain and manage – meaning the end of year result does not represent a financial windfall.
"The cost of delivering our services and projects continues to rise thanks to inflation in recent years, and we are responsible for maintaining more assets than ever before," Cr Phelps said.
"This highlights the challenge ahead for us to remain financially sustainable, but we are committed to managing our finances responsibly.
"This will continue to be a key priority through our new Council Plan and 10-year Financial Plan."
Council's financial statements have been reviewed by the Victorian Auditor-General and will be submitted to them for issue of an audit opinion in line with the Local Government Act 2020.
The full Financial Plan 2025-35 is available to download here.
