General News
23 June, 2026
$3.5m budget hole: mid-year review could make cuts
LODDON Shire councillors could make cuts to its 2026-2027 budget in a mid-year review after adopting a 2.75 per cent rate rise on Tuesday.
LODDON Shire councillors could make cuts to its 2026-2027 budget in a mid-year review after adopting a 2.75 per cent rate rise on Tuesday.
Kerbside garbage collection and recycling fees will jump 15 per cent.
Shire officers said Loddon continued to have the lowest average rates of the 79 councils in Victoria.
But the cash deficit in the new budget has councillors preparing for tough decisions.
“We simply cannot continue to do that (deficits),” said Cr Gavan Holt.
“I would not be supporting the recommendation if it wasn’t for ... going forward where we will have a serious review of where we can make savings.”
Cr Holt said council would this year raise rates totalling $11.7 million and spend $13.4 million alone on the road network.
He said council had to look at its asset base for savings.
Cr Miki Wilson the mid-year budget review could see “further adjustments as needed”.
She said there would be decisions “we don’t want to make” on services and projects. “Something is going to have to give.”
“Overall, the 2026-2027 budget seeks to balance affordability with service continuity and ongoing investment in community assets,” councillor officers told the meeting.
“However, Loddon Shire Council currently remains in a deficit operating position which is unsustainable. In line with a programmed annual review of council’s long-term financial plan, budget settings will require further attention during the year not just in response to changing economic factors and grant program adjustments, but to the wider ongoing deficit.
“Key risks identified include continued operating deficits with limited ability to drive revenue within the rate-cap environment, escalating input costs (including energy, materials, insurance, contractor rates, information technology and fuel), and the timing and accounting treatment of grant income.
“On the capital side, delivery risks remain if project readiness changes or if internal capacity, procurement lead times or contractor availability affect timing of that delivery.
“Federal Government-driven changes to in-year and next year’s Roads to Recovery funding also present cash flow and delivery risks for road projects which may require reprioritisation within changed funding envelopes.
“This risk is managed through a number of initiatives including ongoing expenditure monitoring, conservative indexation and contract management, procurement initiatives, service reviews, and active capital program governance activities such as regular forecasting, realistic phasing and application of the project management framework.“
They said fuel supply and costs remained a volatile risk in response to current global conditions. “This outlook will continue to be monitored in relation to contracts and procurement, with indexation and contract management settings adjusted.”
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