We are pleased to present the 2026/27 Budget for the Swan Hill Rural City municipality and the communities we serve.

This budget builds on another productive year of delivering important infrastructure and community improvements across our municipality., Council continues to provide more than 70 essential services that support the health, wellbeing and liveability of our community - ranging from libraries and maternal and child health, to waste management, advocacy, environmental initiatives and youth services. Alongside this, we are delivering a significant capital works program focused on practical outcomes that improve everyday life.

Council has recently adopted several key strategic documents, including our four-year Council Plan and Community Vision, Youth Strategy, Strategic Asset Management Plan, and. These, together with new strategic pillars, provide a clear framework to guide future planning, investment and service delivery. Earlier and more meaningful community consultation this year has also helped shape the Budget, ensuring local priorities are better reflected in our decision making.

Council continues to operate in a significantly constrained financial environment shaped by state and federal policy settings that directly impact our financial capacity. Federal Financial Assistance Grants (FAGs) have declined over time from around 1% to approximately 0.5% of taxation revenue, representing an almost $10 million per annum loss to Council. Despite ongoing advocacy across the local government sector, this decline has not been reversed. In addition, increasing cost shifting from other levels of government continues to place further pressure on Council, as responsibilities are transferred without equivalent funding.

At the same time, Victoria’s rate cap limits how much Council can increase rates, and it has been consistently set below the rate of inflation. Over the past five years, costs have gone up by about 28%, while rates have only increased by around 16%. This gap places ongoing pressure on service levels and the long-term renewal of community assets such as roads, parks and buildings. By comparison, our direct cross-border neighbouring council has had rate rises that have kept up more closely with the cost of living. These combined factors continue to challenge Council’s ability to maintain and enhance services at expected community standards.

The 2026/27 Budget delivers a $36 million capital works program, including:

• Major infrastructure works such as the Karinie Street Reconstruction and upgrades to the Swan Hill stormwater network
• Continued investment in Robinvale, including drainage improvements, CBD works, riverfront masterplan implementation, new 2 & 3 bedroom worker accommodation housing totalling 35 rooms, and a new off-leash dog park
• Significant regional projects on Pental Island, including the foot bridge and cultural tourism development
• Upgrades to key community and recreation facilities, including the Swan Hill Showgrounds sports precinct, Lake Boga netball court replacement
• Enhancements to public spaces and amenity, including Swan Hill CBD beautification works, public toilet renewals, and new mooring platform at Riverside Park
• Environmental and sustainability initiatives such as the FOGO kerbside service rollout
• Community-focused projects including the Robinvale Community Arts Centre Ceiling renewal, Pioneer Settlement rotunda works, and implementation of local community plans

Council will also continue progressing important strategic initiatives, including housing supply and the delivery of key masterplans across the municipality, alongside ongoing investment in road renewal and critical infrastructure to ensure safe, connected and resilient communities.

This Budget has been developed in line with the Victorian Government’s rate cap of 2.75 per cent. Despite significant financial pressures stemming from reduction of grants, consecutive lower than inflation rates caps and significant increases in costs, including diesel costs, given the cost of living pressures being experienced by the community across our municipality, Council has again chosen not to seek a higher rates cap that that set by the state government. Instead, we are focusing on managing rising costs through ongoing efficiency improvements, and in some instances through rationalisation of assets and services, while continuing to deliver essential services and infrastructure for our community. Our strong track record in securing project specific external funding reflects careful planning and strong project readiness, positioning Council well to attract continued State and Federal investment.

Council is looking forward to achieving the objectives set out in the 2026/27 Budget and continuing the positive growth within the municipality.

All comments must be received by 5pm on Tuesday 2 June 2026.