Rates to rise by $75 a year under conservative Warrnambool City Council budget

Rates will rise on average from $2154 a year to $2229 - a 3.5 per cent jump which is in line with the state government-imposed rate cap.

The council confirmed it was no longer on its agenda to seek approval from the Essential Services Commission for any rise above that cap - something it did get approval for prior to the COVID-19 pandemic and was never fully implemented.

Mayor Debbie Arnott described it as a conservative budget.

"We're trying to be very responsible, not overspending in any areas. It's just finishing off projects," Cr Arnott said.

With little funding available from state and federal governments, the council's budget is a reflection of what is happening across the country.

"We haven't got any more borrowings. Knowing that there's cost of living pressures, we are nowhere near the inflation rate with the increase," Cr Arnott said.

The council has $8.5 million in loans, but that will be reduced to $4 million over the next four years.

One of the bigger projects in next year's draft budget is $1.2 million worth of works to fix the flooding problem in Japan Street which in recent years inundated houses and the nearby caravan park, leaving it with a $1 million damage bill. The council has received some grant money to help fund the works.

More than $3 million will be spent on roadworks and upgrades as part of its $26.7 million capital works budget which includes $13.4 million for existing projects and $13.3 million in new projects.

"Off the back of several years of substantial capital works programs, council is proposing to return to a more modest program for 2023-24 as we complete the large program of existing projects from the previous year," the budget says.

"Council is mindful of the current challenges posed to building projects by high construction costs and low availability of resources."

The capital works budget also includes $200,000 for the future direction of Flagstaff Hill Maritime Museum, with public consultation already under way into what people want to see happen to the facility.

Flagstaff Hill Maritime Village and Visitor Centre is forecast to make a $935,000 loss this financial year and grow to $970,000 next financial year.

User fees at council-run caravan parks are set to go up but even with the increase, the council said it was "market appropriate" and lower than those at facilities in neighbouring shires.

Next financial year, profits from those parks are set to grow to $1.53 million, up from the forecast $1.23 million this year.

The budget for council staff is set to increase by $4.1 million in the next financial year, but $1.8 million of that will be for the expanded three-year-old kindergarten program - the cost of which is covered by the state government.

During the past year, the council saved almost $1 million in staff wages because it was unable to fill vacant positions which it hopes to do in the next financial year.

An extra $400,000 is also being spent on staff to run the popular new library.

The $250,000 multi-use court at Lake Pertobe will also be installed in the next financial year.

The council's focus for the new year will be on planning for future projects, and once planning for the saleyards was complete, it could give the city the ability to fund major projects into the future.

If it is passed on Monday, the draft budget will go out for public feedback and then be adopted before the end of June.

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