Residents have until 3 May to have their say on what South Gippsland Shire Councillors say is a carefully balanced draft budget shaped by global uncertainty and a last-minute rewrite.
The councillors endorsed the Shire’s draft 2026/27 annual budget after a unanimous vote at the 15 April meeting, and have released the document for public feedback from 16 April to 3 May .
The budget forecasts total income of $90.55 million against operational expenditure of $79.88 million. While this produces an apparent surplus on paper, council officers were quick to clarify the figure can be misleading. Once non-cash accounting items like depreciation are removed and real cash outlays such as capital works are included, the Shire budget is balanced exactly, with no cash surplus, and no cash deficit.
Councillors also revealed that the budget had to be substantially reworked in just four days after rising global fuel costs and international instability placed sudden pressure on the Shire’s finances.
Councillor Bron Beach acknowledged the effort involved: "A massive shout out to the key staff members who did an enormous amount of work in literally only four days for us to rework this whole budget."
Despite the tight constraints, the budget includes $24.4 million in capital works. Councillor Sarah Gilligan urged residents not to be misled by the figure, saying "89% of that is renewal costs. So that's just about us looking after what we've got," she said.
Mayor Nathan Hersey described the budget as a responsible response to a difficult environment. "Ongoing international instability has contributed to rising costs, particularly fuel, which has placed increasing pressure on council's operations. This budget takes a disciplined and measured approach — it focuses on maintaining the services that our community relies on while protecting council's long-term financial sustainability."
The Shire paid tribute to the community ideas that helped shape the first draft of the budget, noting that initial engagement attracted more than 100 ideas, and stating that funding was identified to support a number of the initiatives suggested prior to the forced last minute rewrite.
Key initiatives that have been maintained include the rollout of the FOGO waste system, a safer roads program improving safety at seven locations, including Sandy Point, Venus Bay and Foster, and the first stage of a $4.7 million Australian Government-funded offshore wind and coastal investment program in partnership with Wellington Shire Council.
The budget also supports the development of a new Economic Development and Visitor Economy Strategy, to be delivered in-house to achieve cost savings, and continues key strategic work including the Sustainable Building Asset Management program and the Aquatic Strategy.
Councillor Scott Rae addressed community misconceptions directly, pushing back on calls for a rate freeze. "The only way to freeze rates would be to cut essential services and projects which will negatively impact all of us. Councils receive 4% of all tax revenue in Australia yet deliver 25% of all government services. Every year, council does more with less."
Residents are encouraged to read the draft budget and submit feedback before the 3 May deadline. To review the draft Budget and provide feedback, please visit yoursay.southgippsland.vic.gov.au.
