The budget will deliver $12.12 million in capital works projects - 67 per cent of general rates - to improve existing buildings and to construct new infrastructure.

The biggest project for Daylesford will be the completion of the Hepburn Hub at The Rex, which will be completed with $3.01 in borrowings.

Meanwhile, across the shire, $1.60 million will be allocated for road improvements and upgrades while a further $1.28 million is allocated for gravel and road reseals.

More than $4.6 million is budgeted to renew community buildings and childhood facilities, including extensions and refurbishments to the kindergarten and childcare centres at Hepburn, Daylesford and Creswick.

Related coverage: Construction begins on Trentham's early learning centre expansion

In addition, $1.19 million is allocated for recreation facilities - including detailed design work for the Trentham and Glenlyon Recreation Reserve Community pavilions to seek government funding - and for playgrounds and outdoor fitness spaces including for the development of an outdoor fitness space at Clunes.

Meanwhile, $549,000 has been budgeted for upgrades to footpaths and for cyclists and $207,000 for works in parks and open spaces.

The budget also includes $270,000 for strategic planning, such as for the third stage of the Hepburn Planning Scheme Review, as well as $80,000 for the development of a shire-wide aquatic strategy and $210,000 for the October 2020 council elections and the development of a new council plan.

Related coverage: Daylesford pool upgrades funded

The budget will also boost resources for the council's Parks and Gardens, Early Years, Health and Wellbeing and Planning teams, while funding for the shire's libraries, biodiversity, aged and disability, tourism, reconciliation and sustainability will also continue.

Despite the impact of COVID-19 on a large percentage of the shire's residents, with tourism a major employer, there will still be a rate increase.

The increase will be capped at 2 per cent, in line with the state government's Fair Go Rate System.

There will also be an increase of approximately 11.5 per cent in annual waste charges, which the council says is necessary to meet increased service costs in the face of recycling challenges. This will increase by an average of $38 per property each year.

Mayor, Cr Licia Kokocinski, said the proposed budget balanced the needs of the community with Council's responsibility to provide vital services, particularly with the impact of COVID-19 on the shire.

"This budget provides for the delivery of more than 100 services, from home care for the elderly, to road construction, urban planning, environmental initiatives, leisure facilities and so much more. It also details the funding that is required to deliver these services and maintain community infrastructure," Cr Kokocinski said.

However, Cr Kokocinski said that faced with so many financial unknowns, it was a 'baseline budget' that could change before it is adopted in July.

"If significant changes are required to our budget, including financial assistance and how we respond to COVID-19, we will consider that as part of the next stage of our budget adoption process and communicate these changes to our community," Cr Kokocinski said.

In response to COVID-19, council has enacted the emergency clause of its current hardship policy. This means that any ratepayers, of any property types, who are suffering financial hardship can apply for the deferment in the payment of rates and charges.

The community can access the proposed budget online at www.hepburn.vic.gov.au. Submissions can be made online or by letter with the subject "2020/2021 Budget Submission" to:

Chief Executive Officer

Hepburn Shire Council

PO Box 21

Daylesford VIC 3460

They can also be made by email to shire@hepburn.vic.gov.au.

A Special Meeting of Council is scheduled for Tuesday July 7, 2020 when community members can speak to their submissions. Submissions close 5.00pm, Thursday June 25, 2020.