HORSHAM Rural City Council has adopted its 2016-17 budget that includes a 3.5 per cent rates rise and no extra discount for farmers.
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Councillors present on Monday night’s meeting, David Grimble, Tony Phelan, Robin Barber and Sue Exell, voted for the budget motion.
Victorian Farmers Federation vice president David Jochinke made a submission on the draft budget that called for greater rates relief for farmers.
The submission requested an increase to the farm differential rate to compensate for changes in property valuations for the farm sector that have created a “significant rate burden”.
Cr David Grimble chaired the meeting in the absence of Mayor Heather Phillips.
“Local government is unsustainable, we are moving toward a very unsustainable environment, Cr Grimble said.
“This council has a history of raising rates to keep abreast of maintenance.
“The issues raised by VFF are real concerns.”
Cr Grimble called for the state and federal governments to provide more money to councils.
The draft budget was not amended to increase discount farmers receive from the differential rates scheme.
Councillor Tony Phelan said farmers were concerned about the affect of rates on their businesses, which are already under drought stress.
“It is to come up with a $45 million budget when 50 per cent comes from rates and 50 per cent from the government,” Cr Phelan said.
“The government side is often unknown.”
Other changes in the final budget included $330,000 cut to a state grant for Apex Island playground; almost $1 million cut from expected Roads to Recovery program; and a $296,000 boost to Children’s Hub project.
Councillor Robin Barber said property rates were a tax on wealth.
“It’s a very difficult thing, unless we come up with a new system,” he said.
Cr Sue Exell said the Victorian government rates rise cap had kept residential costs down.
“Having a rates cap has been a lot of work but you look at council to see what you can tighten,” she said.