- Published on
By Catherine Watson
COUNCILLORS have formally adopted Bass Coast Council’s 2025-26 annual budget, despite several expressing dissatisfaction with spending priorities.
The $123.2 million budget includes a $31.5 million capital works program, a modest $1.5 million operating deficit, and provision for new borrowings to fund critical infrastructure. The council says it remains financially stable and expects to return to surplus in the following year.
Mayor Cr Rochelle Halstead described the budget as a “careful balance” between current needs and future sustainability within the 3% rate cap.
The capital works investment includes major projects such as the Cowes Streetscape, tracks and trails improvements, and sporting pavilion upgrades.
COUNCILLORS have formally adopted Bass Coast Council’s 2025-26 annual budget, despite several expressing dissatisfaction with spending priorities.
The $123.2 million budget includes a $31.5 million capital works program, a modest $1.5 million operating deficit, and provision for new borrowings to fund critical infrastructure. The council says it remains financially stable and expects to return to surplus in the following year.
Mayor Cr Rochelle Halstead described the budget as a “careful balance” between current needs and future sustainability within the 3% rate cap.
The capital works investment includes major projects such as the Cowes Streetscape, tracks and trails improvements, and sporting pavilion upgrades.
Highlights
Moving the adoption of the budget at Wednesday’s meeting, Cr Brett Tessari acknowledged the financial and logistical complexity of delivering a budget that satisfies both council and community expectations.
“You get councillors putting their requests, you get the community that put in submissions and want their requests to come forward... It's a tough gig.”
Despite general support for the budget’s fundamentals, some councillors voiced dissatisfaction with where funds were allocated.
Cr Tim O’Brien raised ongoing concerns about the agricultural rate differential remaining at 80% of the general rate.
“I really feel we’ve let our farmers down,” he said. “We’re surrounded by local government areas with significantly less to pay – say 70% and 65% rate differentials.”
He also expressed disappointment that the Phillip Island Sporting Precinct received just $440,000 in the budget, well below the $1 million that local councillors had hoped for.
“I'm prepared to vote for the budget, but I think that we do have to do quite a bit of work over the next 12 months to get council officers and council aligned where we see the priorities and where we see funding directed.”
Cr Jon Temby questioned the lack of direct investment in environmental protection—identified by residents as a top priority in community surveys.
- $3.5 million for the Inverloch to Wonthaggi Trail
- $3 million for Cowes Streetscape improvements
- $2 million for Bass Recreation Reserve Netball Pavilion
- $1.9 million for Wonthaggi Netball Pavilion
- $650,000 for Urban Roads and Drainage Improvement
- $440,000 for Phillip Island Sporting Precinct
- $400,000 for climate change actions, supporting Council’s Climate Change Action Plan
- $330,000 for accessible beach access at Cowes
Moving the adoption of the budget at Wednesday’s meeting, Cr Brett Tessari acknowledged the financial and logistical complexity of delivering a budget that satisfies both council and community expectations.
“You get councillors putting their requests, you get the community that put in submissions and want their requests to come forward... It's a tough gig.”
Despite general support for the budget’s fundamentals, some councillors voiced dissatisfaction with where funds were allocated.
Cr Tim O’Brien raised ongoing concerns about the agricultural rate differential remaining at 80% of the general rate.
“I really feel we’ve let our farmers down,” he said. “We’re surrounded by local government areas with significantly less to pay – say 70% and 65% rate differentials.”
He also expressed disappointment that the Phillip Island Sporting Precinct received just $440,000 in the budget, well below the $1 million that local councillors had hoped for.
“I'm prepared to vote for the budget, but I think that we do have to do quite a bit of work over the next 12 months to get council officers and council aligned where we see the priorities and where we see funding directed.”
Cr Jon Temby questioned the lack of direct investment in environmental protection—identified by residents as a top priority in community surveys.
“We’re putting over $4 million into sports, but nothing into environment. I think some balance is required.”
Cr Ron Bauer was one of two councillors who voted against the budget, criticising it as being based on the previous council’s four-year plan, which he said had effectively become a five-year plan.
“Can you hear it? Oh here it comes. The ghosts of the last council,” he said. “We needed to get a four-year plan done by March so that this budget reflects our wish list and not that of the last council.”
Cr Ron Bauer was one of two councillors who voted against the budget, criticising it as being based on the previous council’s four-year plan, which he said had effectively become a five-year plan.
“Can you hear it? Oh here it comes. The ghosts of the last council,” he said. “We needed to get a four-year plan done by March so that this budget reflects our wish list and not that of the last council.”
The wishlist
- Cr Tim O’Brien - Reduce farmers rate to 70 per cent of general rate.
- Crs O’Brien and Ron Bauer -
$1 million for Cowes Recreation Reserve - Cr Jon Temby - More for the environment
- Cr Brett Tessari - ‘A couple of million’ for the Wonthaggi high school site
Cr Bauer also criticised allocation of $3 million of council funds for the Cowes Streetscape project and $3.5 million for the Inverloch–Wonthaggi trail, arguing that funds could have been redirected to other local priorities.
“You cannot tell me that we couldn’t find a million dollars’ worth of savings that could have been allocated to the Cowes Recreation Reserve.”
Mayor Rochelle Halstead acknowledged that current councillors may wish to take the shire in a new direction but said change must follow due process.
“From the discussions that we’ve had around the table since our election, it is very obvious that this council would like to take things in a different direction,” she said.
“I would very much recommend that when we’re going through that council plan and that long-term financial plan, Cr Bauer, that you work hard to lobby your colleagues and get those items that you’re talking about in the long-term financial plan.”
Cr Tessari reminded councillors that the budget must serve the entire shire.
“Unfortunately, this is not just a budget for Phillip Island. We had to actually spread the love and spend a little bit of money on the mainland as well.
“I too would have loved to snap my fingers and pick up a couple million dollars for the high school site across the road, which has been sitting there vacant for nearly 10 years. I was hoping for something there as well.
“We don't always get what we want. So we keep working together and we keep moving forward, but we have to be mindful that there's certain things that we are restrained by.”
In the final vote, the budget was adopted with the support of seven councillors. Crs Ron Bauer and Meg Edwards voted against it.
“You cannot tell me that we couldn’t find a million dollars’ worth of savings that could have been allocated to the Cowes Recreation Reserve.”
Mayor Rochelle Halstead acknowledged that current councillors may wish to take the shire in a new direction but said change must follow due process.
“From the discussions that we’ve had around the table since our election, it is very obvious that this council would like to take things in a different direction,” she said.
“I would very much recommend that when we’re going through that council plan and that long-term financial plan, Cr Bauer, that you work hard to lobby your colleagues and get those items that you’re talking about in the long-term financial plan.”
Cr Tessari reminded councillors that the budget must serve the entire shire.
“Unfortunately, this is not just a budget for Phillip Island. We had to actually spread the love and spend a little bit of money on the mainland as well.
“I too would have loved to snap my fingers and pick up a couple million dollars for the high school site across the road, which has been sitting there vacant for nearly 10 years. I was hoping for something there as well.
“We don't always get what we want. So we keep working together and we keep moving forward, but we have to be mindful that there's certain things that we are restrained by.”
In the final vote, the budget was adopted with the support of seven councillors. Crs Ron Bauer and Meg Edwards voted against it.
Comments are closed.
You didn’t mention the review of the rating structure that will take place in the second half of the year. I have already made some comments to Council on their valuation processes particularly on how they understated the value of rural properties, coastal properties and lifestyle properties for years. This ment owners of residential properties were paying far too much in rates for years.
I don’t understand why farmers get a discount on their rates.
Farmers are in the business of making profits, they are commercial enterprises and therefore should not get any discount on their rates.
What’s the justification of giving farmers a discount on their rates?
I am very disappointed in the inability of this Council to address the infrastructure issues in the Bass Coast.
Farmland differential rates are not a "discount" or a "concession"—they are a recognition of the unique challenges, service limitations, and economic structure of the agricultural sector. A uniform rate across all ratepayers disproportionately burdens farmers who may be asset-rich but cash-flow poor. It fails to take into account the farmer’s actual capacity to pay, level of debt, or access to services.
Many rural ratepayers receive significantly fewer council services, particularly those living far from main population centres. Differential rates help to balance this disparity by better aligning the rate burden with actual service use and availability. In this way, they create a more equitable and realistic approach to rating that supports the sustainability of farming communities and the local economy as a whole.
I am a food producer. Because we are in drought I have spent the last six months feeding by cattle at significant expense. The welfare of my cattle are paramount. The good news is that so far we have had 93.20 ml of rain in June. Good news.
Consider this…. when the primary producer goes to sell their property they are required to payback the rate discount they have received.