DESPITE projecting an operating loss of $1.6 million in the 2025-26 financial year and an adjusted underlying deficit of $10 million in its draft budget, Finance Coordinator at the Bass Coast Shire Council, Joseph Kay, said last week that the shire’s finances were still in good shape.
Turning out at a consultation session on the new budget last Wednesday in Cowes, Mr Kay answered community questions in full and members of the public acknowledged they walked away with a better understanding of the shire’s finances.
Asked if a reduction in the Council’s working capital position from a net $17 million in 2025-26 to $1.9 million by June 2029 was an indication of financial stress, Mr Kay said it was simply an indication council was putting its reserves to good use.
Following the awarding of a contract to a local South Gippsland firm for a $7 million rehabilitation of the old Wonthaggi tip, some of that reserve will go there, but there’s also a fair slab of cash to go towards the $32 million cost of the Berninneit Cultural Centre.
The shire received $8.3m in grants, took out a $10 million low-interest loan and needs to find $13.7m from reserves and new loans to pay for that, inevitably dragging down the shire’s financial position in cash and depreciation.
Council watcher Graham Jolly, who also attended the information session said he didn’t believe the council should be planning to make a $1.6 million loss and was concerned about the depletion of reserves, although he preferred that to increase rates and charges.
“I think the council should be tightening its belt,” he said this week.
“And the community has already identified savings that can be made by pulling out the South East Councils Climate Change Alliance which has cost ratepayers a total of $357,980 over the past five years, cutting back on subscriptions to other organisations of $388,000 and rescinding its climate change emergency policy which has so far cost $2.68 million.”
Mr Jolly said the City of Dandenong and Mornington Peninsula councils had just done exactly that.
“The council should adopt a simple priority list for projects and programs.”
Mr Jolly said he’d also like to see the shire cut total permanent employee expenditure from $40.6m to $38m in the first instance and to set targets for efficiency across the whole organisation in an effort to free up funding for community projects and programs.
My Kay said that as well as managing rising costs under a three per cent rate cap, Bass Coast had seen a reduction in its dividend from residential and vacant land growth over the past few years.
The number of new houses to be added to the rate base in 2025-26 is projected to be 398 and increase of 1.4 per cent where growth of 438, 602 and 592 houses over the previous three years had delivered a bigger boost to the rate base.
If you would like to learn more about the Bass Coast budget, you can attend further consultation sessions on Tuesday, April 29 from 10am to 12 noon at the Inverloch Community Centre and Thursday, May 8 from 2pm to 4pm at the Corinella and District Community Centre.
Budget facts: The draft Budget includes a $31.4 million capital works program, a proposed three per cent average rate rise (in line with the State Government cap), and updated fees and charges schedule based on projected inflation and increased delivery cost including a 7.4 per cent increase in the garbage charge.
Council’s main sources of income are rates and state government grants. Council’s draft budget for 2025-2026 includes revenue of $113.4 million.