Yarra Ranges Council has made a big move to secure the region’s financial future by releasing its draft Long-Term Financial Plan (2025-2035).
The draft plan, which was approved for release during the council’s meeting on Tuesday 14 October, is now open for public feedback.
In 2021, the council undertook its first long-term financial planning effort after two unprecedented events, being the pandemic and the storms. This plan replaces and updates what the council prepared four years ago.
This document details how the council plans to manage its money over the next decade, ensuring that the community continues to receive quality services and that the area remains financially sustainable in the long term.
Covering over 2500 square kilometres, the Yarra Ranges faces unique challenges.
The area is regularly impacted by natural disasters like floods, fires, and storms, which cause significant damage to roads, parks, and other infrastructure.
In the past two years alone, the council has had to spend $16 million to repair the damage, with $9 million of that coming straight from council funds.
Much of these costs are not covered by emergency funding, putting added pressure on the council’s budget.
To tackle these challenges, the long-term financial plan sets out a clear path for financial sustainability.
It takes into account the ongoing pressures of rising costs and the need to maintain and improve essential services.
With market conditions remaining unpredictable, the plan aims to balance financial responsibility with delivering quality services to the community.
A major challenge the council faces is its reliance on rates as the primary source of income.
Under the Fair Go Rates system, the state government sets a cap on how much rates can increase each year.
For 2026-27, this cap is expected to be 2.75 per cent. However, the cost of maintaining infrastructure and services continues to rise faster than income, making it harder for the council to keep up.
The plan highlights the need to secure more funding from state and federal governments, as well as explore opportunities to collaborate with neighbouring councils to share resources.
The draft plan also focuses on maintaining Yarra Ranges’ $2 billion worth of assets, including roads, footpaths, community buildings, parks, and trails.
These are crucial to the region’s liveability. The plan outlines how these assets will be looked after over the long term, with key projects focused on improving drainage, upgrading infrastructure, and continuing multiyear projects that benefit the community.
The council is also committed to providing essential community services.
The Long-Term Financial Plan was developed with feedback from over 15 months of community consultations, including pop-up events, workshops, and online engagement through the Shaping Yarra Ranges website.
This input ensures the plan aligns with the needs and expectations of the people it serves.
Looking at the financial projections, the plan anticipates a 2.75 per cent annual increase in the Consumer Price Index (CPI) for 2026-27, gradually dropping to 2.25 per cent by 2034-35.
The rate cap, which is tied to CPI, is expected to follow a similar trend.
The forecast for rates and charges shows a 4.75 per cent rise in 2026-27, but this will decrease to around 2.82 per cent by 2033-34.
Employee costs are expected to rise by 2.75 per cent annually in the first few years, while the cost of materials and services will increase more sharply, peaking at 7.38 per cent in 2026-27 before stabilising.
These assumptions are based on the latest data from sources like the Australian Bureau of Statistics and the Victorian Department of Treasury and Finance.
The plan also aims to keep a steady surplus, helping to grow the council’s reserves for reinvestment in infrastructure and community priorities.
For example, in the 2025 forecast, the council expects a surplus of $12.46 million, which is projected to increase to $19.72 million by 2035.
With the draft plan now available for community feedback, residents are encouraged to get involved and share their thoughts.
The council wants to know if the financial priorities and strategies are on track, and if there are other areas that need attention.
Feedback can be provided through the Shaping Yarra Ranges website or by attending the council’s pop-up events.
