Create a lively illustration that depicts a charming birthday party. The centerpiece of this image should be an adult Australian Shepherd, slender and adorned with a unique merle coat of black, white, and gray patches. Its warm brown eyes gleam with an unmistakable spark of playfulness. This dog holds the foreground attention, proudly wearing a festive birthday hat. The background should be filled with a variety of colorful balloons, vibrant streamers, and an array of carefully drawn party favors scattered around. The overall mood of the scene should be cheerful and enjoyable.

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