The shire expects to post a $2.3 million operating surplus for the 2021-22 financial year, although no allowance will be made for any further financial effects from the COVID-19 pandemic.

"The 2020-2021 budget was altered to allow council to respond to the COVID-19 pandemic," a report to councillors states, "however it is anticipated that no direct support for the impact of COVID-19 will be required in the 2021-2022 budget."

Council rate rises have been capped at 1.5 per cent next financial year. The Mount Alexander Shire expects to raise $25 million through rates and service charges.

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A little over $1 million of the capital works budget will be spent on new projects, including the purchase of new electric vehicles and charging stations.

The proposed purchases are part of the council's response to climate change, which will also feature a new waste strategy and the start of work on flood levees for Castlemaine and Campbells Creek.

If councillors approve the draft budget it will be made available for public comment. The shire hopes to finalise the document at its June meeting.

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Councillors will also consider separate plans for two new two-storey homes on neighbouring lots on Farnsworth Street in Castlemaine.

Fourteen objections have been lodged against the plans by people worried about the effect of the development on the area's heritage appearance, and about the proposed loss of vegetation from the sites.

Council staff have recommended the plans be approved.

But staff have urged councillors to reject separate plans for a rural subdivision at Baringhup.

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