Campaspe Shire Council’s 10-year financial plan projects increased borrowings, coinciding with major capital works.
A 10-year financial plan adopted at Campaspe Shire Council’s most recent meeting has raised concerns about potential debt and proposed borrowings in the future.
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The 2025-26 to 2034-35 Financial Plan outlines the council’s projected monetary position over the next decade.
According to the document, the council is expected to have an operating surplus in eight out of 10 years, but will also see a steady increase in borrowings.
Projected to peak at nearly 50 per cent of rate revenue in the 2032-33 financial year, borrowings will decrease slightly from that figure in the following two years.
The council's loans and borrowings indicator shows a continued increase in loans over the next eight years, peaking at 49.65 per cent in 2032-33. Graph: Campaspe Shire Council
The increase in loans is attributed to proposed major capital works programs, which are estimated to cost nearly $413 million over the plan’s life.
More than $303 million of that figure is earmarked for infrastructure, a record investment that could see the council borrow up to $43 million by 2035.
“We have some thoughts about things that we would like to do over the next 10 years that will be largely beneficial to all of our community,” Cr Tony Marwood said.
“It doesn’t mean that we are definitely going to borrow this money, but as opportunities and projects come up, we have it in our 10-year plan that we can do that.”
As of June 30 this year, the total amount borrowed by council was $2.33 million.
The council’s total operating expenditure over the next decade is forecast to be more than $1.2 billion, including more than $311 million for road services and maintenance.
Cash holdings are expected to drop by about $30 million, from just more than $74 million this financial year to about $34 million in the 2034-35 financial year.
The council's cash reserves are projected to decrease over eight years before rallying between 2033 and 2035. Graph: Campaspe Shire Council
Cr John Zobek said he was unsettled by the prospect of the council diminishing its cash reserves and labelled the financial plan “reactive”.
“It’s all very well talking about having and building projects – and we do have some significant projects that will go forward – but I think we need to step back ... and approach this in a different manner,” he said.
Cr Luke Sharrock shared Cr Zobek’s concerns and said it was possible that too many projects could put the council in debt.
Taking a broader perspective, Cr Adrian Weston said the council should consider past, current and future ratepayers in its decision.
“When we build assets that last 50 years, in my view, it’s reasonable to fund those through borrowings,” he said.
“It spreads the burden on the future ratepayers, rather than asking the ratepayers here and now to pay for the sins of the past, pay for today and pay for the ratepayers of the future, too.”
While the plan will guide the council’s decisions, Cr Zoe Cook said yearly budgets must still be passed and unforeseen events may impact its implementation.
“Obviously, we cannot predict when the next fire or floods or tornado may happen in our 10-year financial plan,” she said.
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