$2.8m in the red: 'Responsible' draft budget seeks to rein in city's deficit

The draft budget deliberated on Monday, May 13, which was unanimously supported by councillors, includes a 2.75 per cent rate rise, which is in line with the Victorian government cap.

Cr Mildren said the bulk of the $2.8 million deficit came from renewals and maintenance of assets, brought to light through the formation of the council's finance and budget delegated committee.

"Through the analysis process of putting the budget together, we've realised that we're about $2.8 million in the red, going backwards, and we've had to take some actions to try and remedy that," he said.

"Some of those actions have already been done through the restructuring process that the CEO undertook, and we've gone through the budget with a fine tooth comb and picked out anything that we could take out that wasn't going to adversely impact on our service levels, but which we could see as a bit of a luxury and could do without for the time being.

"We've brought the budget back into a balanced budget, only a marginally balanced budget, but it is a balanced budget, and we think that this is the first step in the process to setting us up a very, very strong financial situation for the council.

"There's probably another couple of years of minor changes and activities to bring it into line, but we've really set it up on a good footing for the future.

"If we hadn't have taken action now, by 2026-27, we probably would have been facing some serious solvency issues."

The draft budget includes $15.8 million in capital works, with a fully funded $12.12 million renewal program.

A Wodonga Creek precinct activation project, which has received a $2 million grant from the Albury Wodonga Regional Partnership Projects fund, and the opening of Baranduda Fields, are slated, while the North East Food and Wine Festival will return after its debut in 2023.

Cr Mildren said Wodonga Council would be "in the middle of the pack" with its rates compared to similar councils across Victoria after taking a smaller rate reduction of 2 per cent in 2023-24 as opposed to the state government's recommended 3.5 per cent.

"Wodonga Council, over the last 15 or so years, has gone into a situation of being a fairly high rating council. Over the last three years or so, or maybe four years, we've been pulling that back quite a bit," he said.

"If you look at council's relative position benchmarked against other councils in Victoria, we're now back in the middle of the pack. Generally speaking, that's where you would expect a regional city that's got the rates of development that we've got.

"Having said that, this year, because we've got the deficit issues we're dealing with, it would have been irresponsible not to take the full cap rate rise, which is only 2.75 per cent in the scheme of things anyway.

"We know that inflation has been quite considerably above that, so in that context, it's less than what the costs are likely to be and it's pruning things back even in that context."

Councillors Kev Poulton and Graeme Simpfendorfer were both apologies for the meeting. The former requested councillor Danny Lowe to read a letter on the budget on his behalf.

Cr Lowe called for a motion to suspend standing orders to read the message after being told by Cr Mildren, who chaired the meeting, that it would take away from his own discussion time.

The motion was carried 3-2 thanks to votes from councillors Mildren, Lowe and Danny Chamberlain, with Libby Hall and Olga Quilty against it.

Wodonga residents can have their say on the draft budget from 9am on Wednesday, May 15, at makewodongayours.com.au until 5pm on Wednesday, June 5.