When Warrnambool City Council offers special deals - such as Stay 5 Nights, Pay For 3 - at its Surfside Holiday Park, it is applying what is known as a "discretionary discount".
The deal might cost the council two nights of lost revenue, but in return it is meant to generate bookings out of peak seasons.
These types of discounts, applied to council facilities, services or events, can be doled out in an ad hoc manner, as there is no framework for council staff to decide which group gets relief on costs others may have to pay.
The September 7 council agenda report stated: “Uncontrolled discretionary reductions to adopted fees may create financial risks, inconsistent outcomes, perceptions of favouritism, conflicts of interest, and may adversely impact the achievement of Council’s adopted Budget and Long-Term Financial Plan."
What happened: Councillors voted unanimously at the meeting to adopt the Fees and Charges Reduction Policy, meaning officers must now adhere to eligibility criteria for a discount or waived fee to be offered.
Under the policy, discounts are limited to five percent of the money the council expects to earn from any fee, and no more than $10,000 a year for each council service or facility. Anything more needs approval from further up the food chain.
What councillors said: Councillor Willy Benter told the meeting “we discovered some irregularities during the last budget, and so we’re just putting some policy in place in regards to that”.
The Brolga sought comment from Benter on the nature of the irregularities, but he did not respond.
Councillor Billy Edis said the framework would ensure reductions in fees were “appropriately authorised, consistently applied, properly documented and most importantly, transparent”.
“This policy’s important because it allows the community … to understand that it's all done according to a fixed policy and therefore passes the pub test, it’s not mates’ rates or anything that's been applied,” Councillor Richard Ziegler said.
Who gets discounts? Council CEO Andrew Mason said reductions were typically used for “business reasons”, such as encouraging low-season activity.
The council’s examples of common discretionary discounts included a pre-summer membership special at Aquazone and the free accommodation deal at the holiday park.
Discounts and waivers can be granted to community groups, events and not-for-profits looking to hire out the Archie Graham Community Centre.
Costs for council: Council expects to collect about $21.4 million in user fees in the 2026-27 financial year from sources including its holiday parks, Aquazone and Lighthouse Theatre.
The Brolga has sought comment from council on how much revenue it expects to forgo this financial year.