Corangamite Shire councillors vote to release $54 million draft budget

The hike would leave some farmers scrambling to find the money to cover the "astronomical" rise in rates, one councillor told Tuesday night's council meeting.

Farmers' average bills would jump from $4748 to $5170 - that's $395 in extra rates, a $19 rise in waste management fees and another $7.30 in municipal charges.

While the draft budget proposes a 3.5 per cent rate hike - the maximum allowed under the state government-imposed cap - the bill each ratepayer receives would depend on the valuation of their property.

That means the average residential ratepayer would see their bills rise by just $3.97 or 0.3 per cent, while farmers would be set to bear the brunt of the hike in price due to a 28.5 per cent jump in rural land values.

South-central ward Cr Jo Beard said the outcome for farmers was "driven by the valuers".

"We have to remember farm prices of rural properties ... market's driven the values, basically in residential communities but also our rural properties," she said.

"It's not something we've forced on, it's actually driven by the valuers."

North ward Cr Nick Cole said the result was farmers scrambling to find the extra cash.

"Farmers seem to be picking up a huge proportion of the rates - the bills are going up astronomically, which is making it fairly hard for some of the farmers. It comes off their bottom line, it's an expense they have to pay every year," he said.

"They have to find (the money) and it makes them less able to do a lot of works to keep efficient. It makes it harder to keep modernising equipment. If they want farmers to be efficient and have produce as cheap as possible, the cost burden's been shifted onto them making it the other way."

Coastal ward councillor Jamie Vogels said he was disappointed that even though the shire had attempted to soften the blow for farmers by reducing the amount of bills with a 0.5 per cent variation, they still faced a large rates hike.

He urged farmers to make a submission to the council on the draft budget and ask for a "more dynamic rating system" or strategy in the hope that it achieved a more equitable outcome for the rate burden being carried by the farming community.

In total, the proposed draft budget includes a 4.27 per cent increase in rates and charges which partly results from a 4.85 per cent increase in the waste management charge, which would see the average cost for each household rise from $392 to $411.

Rates and charges account for 47 per cent of the council's revenue.

Central ward councillor Laurie Hickey said it was a fair outcome.

"What we've got in this draft budget is a very fair outcome for everybody, whilst delivering and upholding our services," he said.

The budget's projected $37 million worth of expenditure is 9.6 per cent down on the previous year.

The proposed draft budget also includes a $16.99m capital works program - a similar-sized allocation to the previous year.

More than half - $9.445 million - will be spent on roads.

Councillors voted to release the draft budget for the next financial year to the public with residents across the shire invited to make submissions.

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