Financially responsible Budget adopted
Published on 28 May 2026
Central Goldfields Shire Council has adopted a “financially responsible” 2026-27 Budget(PDF, 2MB) , which charts a path back to a balanced budget earlier than previously forecast.
Mayor Ben Green said a forecast underlying deficit of $5.4 million for the next financial year has been reduced to $3.2 million in the Budget, and it’s on track to be wiped out in 2029-30.
“Council has resolved to balance the books to ensure we can maintain a sustainable cash position, remove our underlying deficit and maintain our assets,” Cr Green said.
“We are being financially responsible in a challenging operating environment.
“The scale of the challenge is big, and decisive action is required to return to an underlying surplus.”
Cr Green said the local government sector is experiencing one of the most challenging financial periods in its history.
“We have been facing sustained challenges, year on year. After a decade of rate capping, the gap between income and expenses has continued to increase,” he said.
“Insurance costs have risen 20 per cent, and materials and construction expenses continue to climb.
“State Government funding has not kept pace with the services we deliver on their behalf, such as school-crossing supervision, libraries and other services Council provides on behalf of Government.”
Cr Green thanked everyone involved with the record number of 332 Draft Budget submissions and two petitions.
“We listened closely to the community’s priorities and amended our final plans to maintain core services,” he said.
“The waste transfer stations at Bealiba, Dunolly and Talbot have been funded in this Budget, along with the community grants.”
Chief Executive Officer Peter Harriott said, consistent with Council’s Financial Plan and Asset Plan, capital investment in the Budget is focused almost entirely on maintaining existing local assets and completing current multi-year projects.
“To meet the financial challenges, we are committed to improving our systems, embracing innovation, and finding new ways to operate more efficiently,” he said.
Proposed Budget initiatives to improve the Council’s financial position include:
- Reducing labour costs
- Increasing operational efficiency
- Selling surplus land
- Reviewing all services.
“With the State Government’s 2.75 per cent cap on rate increases, we have aimed to avoid applying for a rate cap exemption,” Mr Harriott said.
“The rate cap is lower than inflation, which means we cannot afford to do everything we have done in the past, and we appreciate this is a difficult adjustment for our community. In future years we may have to apply for rate cap variation.
“To meet these challenges, Council has taken a disciplined approach to both capital and operational expenditure.
“As a result, the cash balance is expected to be around $6.6 million at the end of 2025-26 and grow to $12.3 million by 2029-30, supporting a much healthier financial position over time.”
Cr Green said capital projects in the Budget include:
- Maryborough Outdoor Pool stage two
- Deledio Recreation Reserve Pavilion upgrade
- The annual road resealing and asphalting program
- Public convenience upgrades, including automatic toilet locks and barbecue sensors
- Aerodrome Regional Airport Program, round four.
BUDGET HIGHLIGHTS
- Total revenue / income: $39.22 million
- Total operating expenses: $37.14 million
- Accounting operating surplus: $2.08 million
- Adjusted underlying deficit: $3.22 million (this reflects day-to-day operational sustainability by excluding capital grants and contributions, showing a clear improvement from the $5.4 million forecast for 2025-26).
Key income sources
- Rates and charges: $20.44 million (general rates revenue is $13 million, waste service rates and charges bring in $5.58 million)
- Operating grants (government support): $9.85 million
- Capital grants (for specific infrastructure projects): $5.30 million
- User fees (childcare, VicRoads, transfer stations, etc.): $1.84 million
- Statutory fees and fines: $571,000
