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Wellington Shire Council Budget reflects financial restraint, rising costs, rate cap pressure and essential investment

Wellington Shire Council has adopted its 2026-27 Budget, striking a clear balance between rising construction and operational costs and still delivering services the community needs.

By news@gippsland - 17th June 2026 - Back to News

Tabled at last night's council meeting, the Budget forecasts another year of financial restraint, as costs continue to rise faster than revenue, and responsibilities are continually shifted to council from other tiers of government with insufficient funding to deliver them.

Council budget includes waste subsidies, renewable energy investment and revised $7 million deficit amid rising costs, funding delays and financial pressures

Council budget includes waste subsidies, renewable energy investment and revised $7 million deficit amid rising costs, funding delays and financial pressures

Managing rising costs

Working within the Victorian government's rate cap of 2.75%, which is again below the Reserve Bank of Australia's forecast inflation rate of 4.2%, council continues to face significant cost pressures such as increases in fuel, transport, utilities and insurance expenses.

Ongoing fuel price volatility has increased council's operating costs by an anticipated $1 million, plus supply chain cost increases. This pressure, particularly affecting road maintenance, waste collection and fleet operations, is expected to continue. To ensure reliable service delivery, fuel use is being tightly managed to minimise impacts.

However, the Budget is still carefully balanced to ensure it delivers on the essential services that the community expects. Council has committed $54.2 million to its 2026–27 Capital Works Program, including $40.3 million from council and $13.9 million in grants and external funding. Roads and drainage are the largest focus, with $22.1 million for road resealing and re-sheeting, $6.5 million for bridges and drainage, and $6.5 million for rural road maintenance.

Investing across communities

This year, the Capital Works Program focuses on investing across smaller towns, rural districts and coastal communities. Key projects include:

  • $3.65 million for drainage renewal in George Street, Maffra
  • $1.7 million for the reconstruction and widening of Briagolong-Stockdale Road
  • $350,000 to finalise changeroom upgrades at Maffra's Cameron Sporting Complex
  • $200,000 for renewal works at the Seagull Drive Boat Ramp in Loch Sport
  • $300,000 for rehabilitation of Port Albert's seawall

Council also plans to expand its landfill capacity at Kilmany and progress early works for Maffra's future Resource Recovery Facility. The budget also introduces a new Food Organics and Garden Organics (FOGO) kerbside collection service to support more responsible and cost-effective waste management into the future.

While FOGO has slightly increased the Garbage Charge, council has offset this by reducing the state government's EPA levy, expecting lower landfill costs as more waste is diverted.

Supporting community needs

In direct response to recent feedback on its waste services, council's decision to subsidise bins for young families and those with medical or disability needs has resulted in a $5 increase to the Garbage Charge, showing commitment from the entire community to support those who need it most.

With this Budget, council will progress a $4.9 million Renewable Energy Land and Infrastructure Project, largely grant-funded, to reduce emissions, improve energy resilience and lower long-term operating costs. This will deliver financial benefits for council and the community as energy costs continue to rise.

Due to the timing of Financial Assistance Grants from the Victorian Grants Commission, council's forecast deficit is now $7 million, following Budget revisions. Overall, the Budget reflects disciplined financial management in a challenging environment, as rising construction costs, reduced state government funding and ongoing cost shifting continue to place pressure on councils across Victoria. See more about the 2026/27 Budget.

Pictures from Wellington Shire Council website.


Source: www.gippsland.com

Published by: news@gippsland.com



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