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East Gippsland Council develops financial sustainability strategy to manage costs and protect essential services over the next decade

East Gippsland Shire Council is developing a financial strategy to address rising costs, improve efficiency, prioritise infrastructure spending and maintain essential services while strengthening long-term financial sustainability.

By news@gippsland - 27th October 2026 - Back to News

East Gippsland Shire Council is developing a Financial Sustainability Strategy to address forecast pressures on its finances and guide decisions over the coming decade. The strategy will establish financial targets and identify practical ways to strengthen Council’s long-term financial position. Council’s existing 10-year plan forecasts that regular income will not fully cover ongoing day-to-day costs.

East Gippsland Shire Council is developing a financial strategy to set targets, address forecast budget pressures and strengthen long-term financial sustainability over the next decade

East Gippsland Shire Council is developing a financial strategy to set targets, address forecast budget pressures and strengthen long-term financial sustainability over the next decade

Financial sustainability plan

Mayor Cr Jodie Ashworth said the strategy and revision of the Long-Term Financial Plan would help Council manage financial pressures and risks while continuing to deliver services and maintain community infrastructure. "Like households and businesses across our shire, Council is facing increasing financial pressures. Rising costs, ageing infrastructure and growing community needs mean we need to carefully plan how we deliver services and maintain assets into the future," Cr Ashworth said.

The work examines the cost of delivering services, renewing assets and funding the capital works program, as well as revenue opportunities, workforce sustainability and disaster resilience. Council will also look at ways to improve productivity, reduce duplication, make better use of technology and deliver services more efficiently.

Its existing financial plan includes efficiency savings, with further savings anticipated, and commits Council to reviewing operating expenditure, capital works and projects to ensure value for money. The plan prioritises maintaining and renewing existing assets over building new ones, with proposed capital spending assessed against community need and affordability.

Long-term financial planning

General Manager Business Excellence Sarah Johnston said careful financial management was essential to balancing the competing demands on Council’s budget. "We need to make sure the money available to Council is directed towards the services and infrastructure our community relies on, while making decisions that remain affordable over the long term," Ms Johnston said.

"While we expect most key financial sustainability indicators to remain at low risk, undertaking work on the financial sustainability strategy will guide decisions on funding services, infrastructure and community facilities over the next decade," Ms Johnston added.

As highlighted in the Annual Report 2025-26 adopted by Council this week, last financial year Council recorded a positive net operating result of $7.7 million. When we're looking only at the money that comes in and goes out each year to run the day-to-day services, Council had an underlying deficit of $3.1m.

Council financial sustainability

Ms Johnson also said, "In simple terms, Council spent more on delivering services and running operations than it received in regular income during the year. The result highlights the need to continue our work on financial sustainability, including:

  • Achieving efficiencies
  • Ensuring value for money
  • Carefully prioritising spending
  • Balancing community needs, affordability, and resilience over the long term

"Council remains in a sound overall financial position with cash and financial assets of $118m and debt of $8.5m. We also delivered $2m of the $2.5m efficiency savings target last year. Financial sustainability is an ongoing pressure not just for us but for councils across Victoria and Australia. The financial sustainability strategy is an important part of how our council responds to that challenge," Ms Johnston said.

Pictures from East Gippsland Shire Council Facebook page.


Source: http://gippsland.com/

Published by: news@gippsland.com



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