Council to seek feedback on draft revised budget

Published on 25 June 2024

Surf Coast Shire Council has adopted its 2024-25 budget, however is now considering a revision to this budget to allow the Surf Coast Aquatic and Health Centre project to go ahead. 

Council will seek community feedback on a draft revised budget to help cover the project cost increases due to unprecedented price escalations. The changes in the draft revised budget only relate to proposed borrowings.

While the overall project cost is subject to the outcome of the current tender process and any subsequent pre-contract negotiations, which are commercial in-confidence, Council proposes to manage the gap between the market price and the current budget through:

• Value management, to occur prior to any awarding of contract. This involves reducing the market cost through simple design changes with minimal effect on the facility’s program offering, lifecycle costs or sustainable design credentials. 
• Council borrowings of up to $6M.  The exact amount of borrowings required will be determined by the amount of savings that can be achieved through the value management process and potential revenue derived from alternative funding sources.

“We have been very fortunate to receive $36.68M in state and federal government funding. This can only be used for the aquatic centre - if we don’t use it, we’ll lose it. And returning this funding could make it harder to secure funding for future projects,” Mayor Cr Liz Pattison said.

“Cost escalations have hampered the construction sector since the pandemic and our benchmarking of other recent aquatic centre projects across Australia show they have been experiencing significant cost blowouts.”

“We know a Surf Coast Aquatic and Health Centre would deliver major health and wellbeing benefits for our community, as well as providing much-needed water safety skills, but we need additional funding to make the project happen,” she said.

“We’re considering borrowings, which allows costs to be shared over time. It means future generations can help fund facilities they’ll use.”

“We’re also investigating other potential government and philanthropic funding opportunities to ensure any borrowings are kept to a minimum.”

If Council decides to pursue the proposed new borrowings, Council’s loans and borrowings ratios will remain within the limits set by Council in the 10-Year Financial Plan and Council’s Borrowings Policy.

Anyone can provide feedback on the draft revised budget from 26 June to 22 July at Council's Your Say webpage, before a decision is made at the August Council meeting.

So far $46,799,111 has been allocated to the Surf Coast Aquatic and Health Centre:

• $20M from the Australian Government.
• $16.68M from the Victorian Government.
• $2.269M through interest earned on grant funding invested back into the project.
• $7.85M, which Council has previously committed.

The centre is proposed to include:

• An indoor 25m pool for lap/squad swimming and learn to swim.
• An indoor warm water pool for learn to swim, exercise, hydrotherapy and leisure.
• Gym and programs spaces.
• Allied health suites.
• Café and supporting amenities.

Adopted budget 2024-25

Earlier in the meeting, Council adopted the initial 2024-25 budget. Environmental leadership and fostering a healthy and connected community are at the heart of the budget, with highlights including:

• $862,000 for local climate emergency response initiatives, headlined by the Growing Our Urban Forest program. The new five-year program with a total $1m investment will adapt townships to help withstand the changing climate.
• Great Ocean Road bike route from Duffields Rd to Strathmore Dr, Jan Juc ($489,410).
• Winchelsea Pool redevelopment, set to open this summer ($5.37M of an $8.5M project).
• Anglesea Netball Courts reconstruction ($1.3M).
• Supporting the next two editions of Lorne Sculpture Biennale ($30,000 each).
• More than $13M on local roads and footpaths, including Coombes Road widening from Ghazepoore Road to Messmate Road ($2.2M) and numerous footpaths upgrades, such as Moggs Creek’s Boolooral Reserve, Anglesea’s Paringa Nature Reserve, and Willis Street in Winchelsea.
• Playgrounds at Moriac’s Newling Reserve ($248,200), Jan Juc’s Bob Pettitt Reserve ($248,200), Torquay’s Ocean Acres ($114,500), and Torquay Skate Park ($30,000) are some of Council’s community assets and facilities to be renewed ($19.6M in total).

Council received 26 community submissions on its initial draft budget during the exhibition period.

“Thank you to the community groups and individuals who made a submission.” Mayor Pattison said.  “It was pleasing that numerous submissions supported initiatives that we’re already progressing. This includes the Winchelsea Visitor Information Centre set to return to the town’s former library building, increased funding to support Geelong Regional Library Corporation and the Growing Our Urban Forest program.”

The budget includes a rate increase of 2.75% – complying with the rate cap set by the Victorian Government.