Funding pressures spark an important local conversation

From roads and footpaths to libraries, sporting facilities and support for older residents, Council’s services help build the strong, connected communities people value. But with costs rising faster than income, regional councils across the country, including Wellington, are facing serious challenges.

Wellington Shire covers more than 10,900 square kilometres, making it the third largest local government area in Victoria with a population of around 45,600 people. In contrast, metropolitan councils average more than three times Wellington’s population in under one per cent of the land area. This means fewer ratepayers supporting a much larger area, and can create real challenges when it comes to maintaining infrastructure and funding local services.

Cost-shifting from other levels of government is another major pressure point. Councils across Victoria are increasingly expected to fund services that were historically the state’s responsibility, such as kindergartens, flood management and lifeguards at some of our popular beaches, often without the funding or resources required to deliver them.

For example, the funding responsibility for school crossing supervisors has increasingly shifted to councils, which are now expected to cover the costs of wages, uniforms and program administration. Council is required to deliver immunisation programs and enforce public health laws, but must also bear the administrative and staffing costs.

Recently, Council was asked to absorb the cost of administration for collecting the Emergency Services Volunteers Fund levy, a tax Council did not ask for or want.

Rate capping, while well-intentioned, is also having an impact. While Council can only raise rates by a capped amount (3% in 2024–25), the cost of delivering services, especially infrastructure, is increasing much faster due to inflation. For example, the cost of building a road might go up 15% in a single year, while Council’s income grows by only 3%. Over time, that creates a significant funding gap.

Despite the challenges, Council remains committed to delivering services as efficiently and sustainably as possible.

Wellington Shire Mayor Scott Rossetti is calling on both state and federal governments to help rethink how local government is funded, especially in rural and regional areas.

“Like many of our residents, Council is feeling the impact of rising costs, but we’re doing everything we can to manage these pressures while continuing to deliver more than 100 essential services across our Shire,” Mayor Rossetti said.

“We need a funding model that reflects the real cost of delivering services in regions like ours. We need the flexibility to respond to local needs, and the funding to do it well.”

Council is also encouraging residents to speak up, by writing to MPs, talking to neighbours or speaking out.

“When our community shares their views, it reminds decision-makers in Spring Street and Canberra that regional towns matter. We deserve funding models that reflect our reality and support our growth,” Mayor Rossetti said.

Council remains hopeful about the future, with strong community spirit and a shared belief in the region’s potential.

“Together, we can continue to build vibrant, welcoming and resilient towns, where people of all ages and backgrounds feel supported and proud to live,” Mayor Rossetti said.

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