Mount Alexander Shire councillors have backed a push to make major polluters help pay for the growing cost of climate damage.
The shire has faced a string of disasters in recent years, placing increasing pressure on council resources and local communities.
"In the last five years alone, we've endured the January 2026 fires, the 2025 drought, the 2024 hailstorm and the 2022 floods," Cr Lucas Maddock said. "Disasters are costing both our community and this council dearly."
At Tuesday night's council meeting, Cr Maddock introduced a motion aimed at addressing the growing impacts of climate change on local councils.
Cr Maddock addressed the growing concern that council has had to divert funds from other services for the recovery and response of disaster events. "Our public funds, which should be supporting kinders, schools, health services, and roads, will continue to be diverted to crisis response and repair instead," he said.
During public question time, residents spoke in support of Cr Maddock's motion, sharing personal experiences of recent climate disasters.
Local climate activist Malcolm Robins spoke in support of the motion.
"I ask Mount Alexander Shire Council to actively and publicly support this campaign on behalf of our community," he said.
Local resident and psychologist Dr Susie Burke urged for the amendment to the motion to include the term psycho-social impacts when referring to the cost and impacts of climate change.
Referencing her work, she told the council these impacts were already being felt across the community and needed to be considered alongside the financial burden on local government.
Castlemaine Community House committee member Bronwen Machin added that the motion was particularly relevant for a community still recovering from January's bushfires.
She pointed to the ongoing recovery effort and the strain on volunteers supporting affected residents.
The motion was passed unanimously after several councillors spoke in support.
The motion reflects broader advocacy across the sector, with councils including Golden Plains Shire calling for increased climate funding.
Analysis from the Australia Institute in September 2025 found that climate-related costs are rising faster than local government revenue, increasing financial pressure on councils.
Research Director at the Australia Institute, Rod Campbell, said: "These huge, multinational companies that extract and export Australian resources are in a far better position to pay for climate impacts than local councils."
The motion calls for a national compensation fund and a levy on fossil fuel companies to help cover the cost of climate damage.
Following the vote, the council will write to the Federal Minister for Climate Change and Energy and the Federal Member for Bendigo, advocating for the proposed national compensation fund and climate pollution levy.