Council adopts budget focused on infrastructure, renewal

Published on 24 June 2026

Colac Otway Shire Council has adopted its 2026-27 Budget, delivering continued investment in essential infrastructure while navigating a challenging global and local economic environment.

Council CEO Andrew Tenni said the Budget reflects a balanced and considered approach that responds to community needs.

“The current global economic climate has created a challenging backdrop for this year’s budget. Despite this, Council remains focused on delivering essential services, investing in asset renewal and projects that are important to our community,” Mr Tenni said.

Key initiatives include:

• Allocation of $13 million to the Capital Works Program.
• Funds for maintenance and improvement of existing Council assets $11.74 million.
• Ongoing expansion of footpath networks across the municipality.

Early community engagement in December and January enabled Council to consider a range of local views and ideas from across the shire.

Council received 51 submissions across two consultation phases throughout the budget development process.

In response, almost $1.5 million has been dedicated to community raised initiatives including:

• Introduction of a new road sealing program targeting parts of the shire’s 1,000km of unsealed roads.
• Upgrades to the toilets at Irrewillipe Recreation Reserve.
• Drainage improvements.
• An emergency management trailer located in Apollo Bay.
• Additional park furniture in Memorial Square, Colac.

In addition, Council was successful in securing State Government funding for two significant projects; $580,000 for the Colac Bike Park and $461,000 for the Deans Creek Road and Pound Road intersection upgrade.

“These are key local projects which are great news for our community that we’re excited to deliver in 2026-27,” Mr Tenni said.

Council’s 2026-27 Budget includes an average rate rise of 2.75 per cent, in line with the State Government’s set rate cap.

Mr Tenni said the adopted budget outlines a result of a net deficit of $5.7 million.

“The net result that was exhibited in the draft budget anticipated a surplus of $709,000. However, while the draft budget was on exhibition, Council was notified that 80% of our Federal Assistance Grants allocation would be provided in 2025-26, reducing Council’s overall income for 2026-27 by just over $7 million.

“This changes the net result from a surplus to a deficit. However, these funds will be carried over and be available for use in 2026-27,” Mr Tenni said.

To view the 2026-27 Budget, please visit Council’s website: Budget & Finances - Colac Otway Shire