East Gippsland Shire Council says it will prioritise asset renewal and practical, achievable projects over the coming financial year, shifting its infrastructure strategy to better align with localised delivery capacity.
Announced last Tuesday, June 23, as part of council’s 2026/27 Budget, the incoming infrastructure program allocates $54.4 million to capital works. The pipeline will be funded via $31.8 million from municipal operations and $22.7 million gathered through external grants and contributions.
Chief executive officer Fiona Weigall said that while council had aggressively expanded its building program over the past five years — heavily backed by external funding to drive community recovery following the Black Summer Bushfires — the focus is now shifting toward structural consolidation.
“In 2026/27, we aim to deliver an infrastructure program of $54.4m. This reflects the continuation and completion of several major externally funded projects,” Ms Weigall said.
“It also places greater emphasis on renewal and practical projects that can be delivered within available capacity. The program will better align investment with delivery capacity, including improved staging of multi-year projects and stronger management of funding carried forward.”
In line with a strict principle of maximising the lifespan of existing infrastructure, a dominant $36 million slice of the total budget has been locked solely into asset renewal.
The shift to a back-to-basics approach follows a new community engagement model introduced by council this year, which gathered public feedback before the draft budget was locked in. Mayor Cr Jodie Ashworth said this early consultation gave councillors clear boundaries on where to invest.
“Community feedback highlighted that maintaining core services and local infrastructure is a priority,” Cr Ashworth said.
“The community consistently identified roads, footpaths and drainage as key areas of importance, along with expectations around cleanliness, amenity and the day-to-day services that support liveability across our towns.”
The single biggest capital ticket item is a massive $17.5 million investment into local aviation infrastructure. The Bairnsdale Airport will receive a $13.2 million injection to extend its runway and upgrade lighting systems, alongside a $4.3 million rehabilitation of Taxiway C.
Roads, bridges and drainage network upgrades across the shire have been allocated a collective $14.4 million, while $15 million will be directed into open spaces, recreation and community facilities.
The remaining balance of the capital program spans a diverse list of regional, township, and safety-focused infrastructure projects, including:
– Road resealing and resheeting: $7.7 million allocated to municipal road surfaces.
– Bridge and drainage infrastructure: $4.3 million secured for bridges and $2.4 million for drainage networks.
– Recreation and sports facilities: $6.4 million for upgrades, including major soccer works at the WORLD Precinct.
– Parks and open spaces: $5.2 million earmarked for streetscapes and parklands, including Stage 2 of the Krauatungalung Walk.
– High Country road upgrades: $1.1 million for the upgrade of Connleys Road in Omeo.
– Lakes Entrance foot traffic and piers: $1 million for Marine Parade Stage 2 and a new Church Street pedestrian crossing, plus $1 million for marine and foreshore upgrades including the Metung Boardwalk.
– Caravan park safety: $570,000 for critical fire safety compliance upgrades at the Bemm River, Omeo, Marlo and Bairnsdale Riverside municipal caravan parks.
– Sporting stadium design: $500,000 to complete the architectural design phase of the Lakes Entrance Indoor Stadium.
– Emergency resilience: $400,000 to install backup generators at key community facilities.
– Bairnsdale Aquatic Centre: $390,000 allocated to execute Stage 2 of the re-roofing project at the Bairnsdale Aquatic and Recreation Centre (BARC).
Despite the heavy capital investment, council noted that executing works across 21,000 square kilometres remains an expensive, ongoing logistical challenge that is increasingly vulnerable to macroeconomic pressures. High inflation, rising insurance premiums, and an extra $880,000 spike in operational fuel costs have forced strict budgeting constraints.
“Delivering services to a large and dispersed region is an ongoing challenge,” Cr Ashworth said.
“We often require duplication of services and infrastructure to ensure all communities are supported. This comes at a cost that must be balanced against our commitment to support communities.”
