Date: 25 June 2026

Two regional Victorian councils have adopted their 2026–27 budgets this week, both landing on a 2.75 per cent rate rise after divided chamber votes that laid bare the tensions councils are navigating between financial sustainability and ratepayer affordability.

At the City of Ballarat, the budget passed only on the casting vote of Mayor Cr Tracey Hargreaves, after the chamber split four votes to four. The $245 million spending plan includes a $92.3 million capital works program covering more than 120 projects and 80 services, with the largest items including $17.85 million for Eastwood Leisure Centre upgrades, $14.5 million for a new regional animal shelter, and $10.1 million for Marty Busch Reserve.

Four councillors backed an amendment to reduce the rate rise to 1.75 per cent, arguing local families were already under pressure from rising living costs. Supporters of the budget pointed to a different kind of pressure: a rates freeze in 2025–26 had left the council carrying a compounding deficit of $16.5 million. Chief Executive Evan King told the meeting that a one per cent reduction in the rate would cut revenue by approximately $1.4 million, with direct consequences for the capital works program.

The 2.75 per cent rise also secures a newly established $1.455 million inflationary reserve, designed to buffer capital projects against rising material and fuel costs. Cr Jay Morrison noted that because of shifting property valuations, around 30 per cent of residential ratepayers would in fact pay less than last year despite the increased rate. Concessions in the budget include a $120 rebate for low-income healthcare card holders, pensioner rebates, and free extended hours at community pools over summer.

At Moorabool Shire, the budget passed six votes to three, with a $33.16 million capital works program anchored by $21.96 million in new works. Major projects include $2 million for stage two aquatic infrastructure at the Bacchus Marsh Indoor Sports Facilities, $1.8 million for the annual road reseal program, and $1.2 million for traffic safety initiatives.

The sharpest debate at Moorabool centred not on the rate rise itself but on a 27 per cent increase to the waste management charge — rising from $113 to $144 per year. Cr Tom Sullivan and Cr Ally Munari both raised concerns that the charge applied across all rateable properties, including rural farming land without dwellings, meaning some landholders would pay the levy multiple times across subdivided holdings for services they could not access.

Council maintained that a universal kerbside hard waste service would be too costly, instead offering two free one-cubic-metre transfer station drop-offs annually and a capped kerbside service for up to 500 elderly or mobility-limited households.

The parallel outcomes at both councils — the same rate figure, divided votes, and cost-of-living debate in each chamber — reflect a wider dynamic in this year’s budget season. Councils are absorbing significant cost increases of their own while communities push back on any additional financial burden. As Cr Morgan put it at Ballarat, councils and households alike are facing the same inflationary reality: costs are going up, and doing more with less is increasingly the only option on the table.

Further reading:

The Courier — Ballarat set for rate rise as a divided council passes budget, 24 June 2026 (paywalled)

Melton & Moorabool Star Weekly — Divided council locks in budget, 25 June 2026