Sunbury City will come into existence on July 1 next year after formal orders were gazetted in State Parliament.
Local Government Minister Tim Bull said last Thursday’s move meant Sunbury would break away from Hume.
Acting in the final days before the state government went into caretaker mode, Mr Bull also set official boundaries for both municipalities.
The new city will include Sunbury township, Bulla and parts of Diggers Rest.
The orders also provide for a share for Sunbury of Melbourne Airport “rates in lieu” revenue for the next 10 years.
‘‘The orders formalise the distribution of assets and liabilities between Hume … and the new Sunbury council, as well as ensuring the full proceeds of Racecourse Road Reserve go to the new municipality,’’ Mr Bull said.
The new council will initially be led by administrator Joanne Anderson, formerly of Brimbank and Benalla councils, and interim chief executive Vince Haining.
Council elections will be held in 2016.
Sunbury-based Hume councillor Ann Potter said the move was not unexpected but was nevertheless an emotional one.
‘‘I’m still digesting it, especially what it means for our [Hume council] staff,’’ she said.
Long-time secession proponent Jack Medcraft said it was the culmination of a 20-year battle.
‘‘I’m really excited that Sunbury can now do what it’s been wanting to do for many years: that is, become a really vibrant place,’’ Cr Medcraft said.
He said he didn’t foresee any challenges that a Sunbury council couldn’t overcome.
‘‘Fifty per cent of Victorian councils are smaller than Sunbury and they survive just fine. It’s an exciting day all round.’
Labor has indicated it will not seek to wind back the Sunbury decision should it win next month’s state election.
Hume chief executive Domenic Isola said the council accepted Mr Bull’s decision. But he said the Sunbury project remained complicated and many factors had to be worked through.
