WHILE councillors spoke mostly with pride in announcing their support of a suite of South Gippsland Shire Council plans on Wednesday, outlining benefits that will flow to the shire’s communities, there was concern expressed over the longer-term situation and the need to ensure financial sustainability.
Speakers agreed that council is currently in a healthy financial position but stressed it is crucial to find ways to reduce council expenses and to ensure higher levels of government meet their share of costs.
The spotlight again fell on the large building portfolio council is responsible for maintaining, something that should have community groups who occupy such buildings thinking proactively about ensuring their facilities are not underutilised.
That point has previously been illustrated by the decision not to renew the lease of the Korumburra Senior Citizens Club and to encourage its members to share facilities at the town’s new Community Hub, along with efforts to relocate the Grow Lightly group.
The integrated suite of plans approved at the June council meeting consisted of the Council Plan 2025-2029, Financial Plan 2025/26-2034/35, Revenue and Rating Plan 2025-2029, Budget 2025/26-2028/29 including the 2025/26 Council Plan Annual Initiatives, Asset Plan 2025-2035, and the Municipal Public Health and Wellbeing Plan 2025-2029.
Cr Sarah Gilligan stressed that something needs to change for councils to remain financially sustainable.
She noted the annual rate cap applying to councils across Victoria since 2016.
“This means councils haven’t kept up with CPI for almost a decade,” Cr Gilligan said, stressing South Gippsland Shire Council has to budget to keep the lights on, but is constrained in terms of new initiatives or capital works.
She offered the lack of funding for design and implementation of required infrastructure for Nyora as an example, noting that is despite growth being well underway there.
Cr Gilligan added that funding is lacking for major improvement to the shire’s roads, including the need for adaptation design in key landslip areas, observing that many worthwhile community projects are also unable to be funded.
She then turned her attention to where savings can be made.
“We have close to a billion dollars’ worth of assets, most of which are in need of significant maintenance and renewal, and the kicker is, around half of our assets are not ours,” Cr Gilligan declared.
Council mergers and other happenings have resulted in the burgeoning building portfolio South Gippsland Shire Council is responsible for maintaining regardless of whether it owns the land and buildings.
“The main asset holder we help is the State Government,” Cr Gilligan said, adding that puts council up against the wall.
“So, in this term we are proposing a reckoning of assets, a quantification of cost shifting by the State Government; with this information, we (will) have a whole picture so we can start making smarter decisions around renewal, replacement and consolidation,” Deputy Mayor Gilligan remarked.
“We are doing this by looking at assets from a number of angles, ownership, risk and liability, community benefit, renewal and maintenance forecasts, historical context, location and user numbers.”
Cr Gilligan went on to speak about the need for improved partnerships between council and community to achieve the necessary efficiencies while still serving community needs.
“Our communities can only benefit from a council working to a plan within its means,” she said.
She expressed pride in the now approved integrated suite of council plans, believing they are consistent with council’s aim of being financially responsible for the long-term planning of South Gippsland.
Cr Nathan Hersey backed Cr Gilligan’s views on the current challenges facing council, commenting specifically on cost-shifting from State Government to council and the need for the issue to be addressed.
On a positive note, he reflected on “solid Budget initiatives” such as $1.2 million for a reserve fund for South Gippsland to respond to severe weather events, an extra $20,000 for community grants, $150,000 to begin work on a developer contribution plan for Nyora, and $80,000 to create an open space asset management plan for parks and play spaces.
$50,000 to fight the shire’s weeds, and the same amount for a heritage review for select townships were other positive initiatives in council’s Budget that Cr Hersey pointed to.
The Budget contained $21 million towards council’s Capital Works Program.
For those keen to check out more of council’s latest Budget or the other recently approved plans, all are available by visiting southgippsland.vic.gov.au/key-plans.
