“Some difficult decisions” behind 2.75 percent rate rise in Warrnambool council’s budget

Councillors highlighted growing pressure on maintaining the city’s assets and reliance on external funding for major works.

Zara Cuthbertson
June 04, 2026

Only a few new projects and a 2.75 percent rate rise - about $1.86 a week for the average household - marked Warrnambool City Council’s 2026-27 budget, alongside a blunt message to state and federal governments that the city cannot fund major upgrades by itself.

What happened: Councillors unanimously adopted the draft budget at Monday night’s meeting, endorsing a 2.75 percent rate rise and outlining more than $13.5 million in asset renewal works across the municipality.

Councillor Debbie Arnott said adopting the budget had required “some difficult decisions” amid cost-of-living pressures, with the increase kept in line with “the Victorian Government’s rate cap”.

She said it equated to “approximately $1.86 per week” for the average residential ratepayer, as Council sought to balance services with affordability.

The big bills: Headline spending included $13.5 million for asset renewal across a $830 million infrastructure base, plus more than $600,000 in minor works at key sites including the Archie Graham Centre, Lighthouse Theatre and Flagstaff Hill.

New projects include key worker housing planning, cricket nets at Bushfield Reserve and picnic tables at local sites.

Warrnambool council has $1.1 billion worth of roads and buildings, but not enough money to maintain them

“We have millions and millions of dollars of assets… if we don't put money into them, they will fail.”

Tough but needed: Councillor Matt Walsh said any rate rise was “a difficult thing for people to swallow”, but said the increase was necessary under the cap.

He warned rising waste charges linked to diesel and heavy vehicle costs would also impact households, noting fuel volatility had already affected council operations earlier in the year.

Share the load: Mayor Ben Blain used the discussion to press for external funding, saying a safer Flaxman Street and Nicholson Street intersection would proceed immediately if grants were secured.

He added Warrnambool needed stronger support from state and federal government to keep pace with a growing regional population.

The background: A recent State of the Assets report highlighted growing pressure on Warrnambool’s infrastructure network, with millions of dollars in renewal gaps identified and the cost of maintaining more than $1 billion in roads, bridges and community assets rising faster than available funding.