Southern Grampians Shire Council passes $56M budget as gallery demolition sparks heated exchange

Southern Grampians Shire Council has approved its largest-ever annual budget – a $56.4 million plan that includes more than $20 million for three major infrastructure projects. And while many celebrated one of the “strongest local council budgets” in the state, others in the chambers still have issues with the plans.

The 2025/26 budget, which includes funding for a CBD streetscape redesign, a new Hamilton Gallery, and a combined library and community facility known as the Hamilton Hub, will be supported by a 10-year financial plan. 

The plan forecasts peak debt of $16.5 million but also outlines the council’s intention to repay it all by the end of the decade.

Rates and charges will rise by three percent to $25.1 million this financial year, while government grants are expected to bring in a further $18.46 million. The budget forecasts an operating surplus of $3.86 million.

Councillor Katrina Rainsford sparked debate during last Wednesday’s meeting after questioning the plan’s decision to demolish the current Hamilton Gallery, as well as broader concerns about spending during western Victoria’s current drought conditions.

Rainsford criticised the timing and direction of the budget, moving to halt design work on key projects until “400 millimetres” of rain had fallen across the shire. 

Her motion didn’t find a seconder.

Rainsford also argued a previous council resolution – at a meeting in November last year – had called for adding floors to the Brown Street gallery building, not bulldozing the site. 

“The November 22 meeting, it did not resolve to demolish a building and replace it with a new build; it was to stay put and extend the place,” Rainsford said. 

“I was there, and I saw the documents, I saw the plans. So in which other meeting have we resolved to demolish an asset of this community?”

Rainsford noted that not having the council’s “most expensive and major projects” open for comment, such as the gallery’s redevelopment, could create a lack of confidence in the council from the community.

Councillor Helen Henry responded sharply, calling Rainsford’s comment “offensive”.

“There's an indication and an inference of subterfuge, which I find particularly offensive,” Henry said.

Despite the division in the chamber, the council reported a growing number of residents engaging with the budget process. 

Director Darren Barber said early consultation had helped double the number of community submissions compared to previous years, with 31 received this year.

Henry closed the debate by highlighting the record $131.1 million committed to asset renewal over the next ten years.

“This is one of the strongest local council budgets in the state, and it's an even stronger budget than last year. This year's budget and long term financial financial plan include the same major projects as last year, but even more renewal and less debt,” she said.