HORSHAM Rural City Council will proceed with an application to increase rates above the state government’s impending cap.
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Councillors attended a special meeting on Tuesday night to discuss a council submission to the Essential Services Commission.
Councillors voted to request that the commission allow an additional one per cent rate increase on the state government’s 2.5 per cent cap.
Victoria’s 79 councils had until March 31 to apply for a higher rate increase.
Horsham Mayor Heather Phillips said councillors voted six to one in favour of pursuing a higher cap.
She voted against it.
“I'm taking the line that the ratepayer comes first, and why should we be punishing the ratepayer when it's the government who is imposing this cap?” she said.
“Each councillor had similar arguments as to why they were voting the way they were, and we all agree in principle that we want to keep rates low.
“However my view is we’ve been told 2.5 per cent, so we work with that.”
The cap, announced in December, is based on the Melbourne Consumer Price Index for the next financial year, as forecast by the Victorian Treasury.
The cap will take effect in July.
In February, the commission released a list of 21 Victorian councils who had indicated they wanted a higher than 2.5 per cent cap.
