A three per cent rate increase will be recommended when draft budget papers are presented to Baw Baw Shire councillors tomorrow.
Proposed changes in the 2025/26 draft budget include cutting the number of differential rate categories to three and scaling back the pensioner rebate.
A feature is a $46.1 million capital works program, including design works for a pavilion at Longwarry Recreation Reserve and a masterplan with an athletic track focus for the Burke St and Logan Park sporting precincts in Warragul.
Following community submissions, an $85,000 netball court upgrade at Drouin, $320,000 footpath near the Yarragon school and a 12-month trial membership of Council Alliance for a Sustainable Built Environment (CASBE) have been incorporated.
If supported, council will borrow $6 million for strategic land purchases and deliver a $1.6 million Drouin streetscape project.
Subject to external grants are a $1.93 million pavilion at Western Park, $1.1 million upgrade of Warragul Leisure Centre aquatic heating and three road reconstruction projects at Darnum, Shady Creek and Buln Buln East totalling $5.3 million.
The draft budget states the three per cent rate rise, in line with the state government's rate cap, comes amidst exceptional population growth in the shire, escalating costs and reduced funding from state and federal governments.
Total revenue from rates and charges is forecast at $81.6 million, including $65.8 million from rates, $14.5 million for waste charges and $950,000 in new property additions.
This represents an additional $5.3 million on last year's budget.
Waste charges are set to rise from $464 to $554 for ratepayers, an increase of 19.4 per cent.
Council has proposed to continue with its differential rating strategy, but there are significant changes.
It recommends applying only three differential rates - general/residential land at the general rate, farm land at a discount of 20 per cent, and commercial and industrial land with a 30 per cent surcharge. This would abolish four categories - vacant land, urban living, residential development and commercial and industrial vacant land.
The phasing out of the pensioner rebate is proposed over two years.
The rebate, which council said it was not mandated to provide, is set to reduce from $50 to $25 for all eligible pensioners this financial year, before being phased out completely in 2026/27.
Employee costs are forecast to cost council $40.9 million, a seven per cent increase equating to $2.8 million.
An officer report continued last year's messaging that the draft budget focused on achieving financial sustainability whilst delivering objectives of the council plan.
It projects a surplus of $23.2 million, the same as last year, with a total income of $141.4 million and $118.2 million in expenses.
The draft budget papers will be presented to council tomorrow (Wednesday) at the West Gippsland Arts Centre at 1pm.
If approved, they will go out for community feedback before returning to council in June.