HORSHAM Rural City Council will not apply for a three per cent rates rise in 2017/18, capping the maximum increase at two per cent.
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Councillors voted unanimously on Monday evening not to apply for an exemption to the state government’s rates rise cap.
Horsham council has previously been allowed by the Essential Services Commission to raise rates by one per cent above the cap in the 2016/17 budget to fund infrastructure renewal.
Cr Alethea Sedgman said it was good to see comments on social media, even the humourous ones.
Cr Mark Radford said a lot of projects had been supported by the Horsham council’s infrastructure fund, which was topped up with rates rises above the cap.
“It’s important that Horsham council continue to put money aside for that fund,” he said.
Council savings have allowed a $220,000 top-up instead of an extra one per cent rates rise.
Cr Radford said he hoped the council would keep putting up signs letting people know where the extra rates were going.
Cr David Grimble said the decision was where it needed to be as businesses were still recovering from dry seasons.
“The rates rise cap has forced local governments generally to look at how they budget,” he said.
“It’s forced us to work smarter.”
Cr Grimble said local government had a secure method for income as they looked at costs first before setting rates.
“I believe the fact that we got our increases down to a very low level, which sets expectations for future years,” he said.
“Everyone in the community would rather see their rates and rates burden lower not higher but that has to be balanced with needs.
“We are still in an unsustainable position in the long term without extra funding from the state and federal governments. These governments have cost-shifted onto local governments.”
Cr Josh Koenig said council staff had worked hard for the savings and thanked corporate services director Graeme Harrison.
“I’m sure it will be well received in the community,” he said.
Horsham council Mayor Clarke said councillors had a responsibility not to leave infrastructure as a basket case.
“Most of this money goes to rural roads. We have to allow farmers to get their produce to the point of sale,” Cr Clarke said.
“It is a major issue for this community. We have one of the most unstable soils in Australia and that’s why our repairs are so expensive.”
The motion was passed unanimously.
Corporate services director Graeme Harrison told councillors that Horsham council should reserve three per cent of rates revenue over the next ten years for infrastructure and building renewal.
“On March 22, council had a budget briefing and were advised that through utilisation of rate growth income, tight controls around additional staffing, implementation of efficiency savings and cost containment, it has been possible to fund a further 1 per cent or $220,000 contribution to Council’s Infrastructure renewal fund, without the need for a rate cap variation application for 2017-18,” Mr Harrison stated.
“It was also pointed out that whilst this has been possible in 2017-18 it does not mean that it will be achievable in subsequent years.”
Mayors from around the Wimmera have said their councils will be under pressure from the lower rates cap, which is pegged to inflation.
The state government lowered the cap from 2.5 per cent to two per cent late last year, and Horsham councillors had previously considered another application to raise rates by one per cent above the cap.
The Victorian Farmers Federation and farmers within the Horsham Rural City Council boundaries have been campaigning against what they claimed were unfair rates rises.