I don’t need to remind anyone about the impact the cost-of-living crisis is having. You can feel it every day.
Bass Coast Shire Council’s recent budget for the 2023-24 financial year has been guided by these pressures. It was a responsible budget for uncertain economic times.
There are always many competing demands in budgets, but Council was committed to maintaining current service levels as valued by our community, while maintaining our infrastructure and we have delivered on that critical goal.
At the same time, as one of the state’s fastest growing regions, we must also increase spending on capital works to cater for our increasing demands. The budget delivers on this with an extra $30 million for capital works.
The total expenditure of $107 million also includes $16.1 million investment in our extensive road and pathway networks, $13.4 million for leisure and recreation facilities, $4 million for climate change actions and $12.9 million to upgrade community facilities.
Like all household budgets, costs are rising for councils, just as they have in the supermarket and at the petrol pump. We were facing significant supply chain price rises for building and construction materials. Insurance premiums have also increased markedly due to the major flood events of the past year. Waste management services too have been impacted by abnormal cost increases linked to the high inflation rate.
Despite these upward pressures, Council’s budget projects a surplus of $5.2 million.
Council’s financial position remains sound with its working capital ratio of 1.80 reinforcing its ability to meet financial commitments as they fall due, borrowings well within the prudential ratios, and a balanced Funding Statement position.
To achieve this strong outcome, council has worked hard to improve the efficiency of our organisation to ensure that service levels are maintained within the State Government cap of 3.5 per cent, which is significantly below inflation.
The Essential Services Commission had recommended a 4 per cent rate cap to partially keep pace with inflation. For most ratepayers this means an increase in rates between $50 and $90 this year.
The rate capped environment is putting significant pressures on council services. On top of that, if the government keeps on making budget cuts it is likely to translate into Council being able to do less.
