Victorian Farmers Federation president David Jochinke told Horsham Rural City Council he had legal advice, from HWL Ebsworth Lawyers, the council could rework its budget, to ease the rates burden on primary producers.

This year’s revaluation saw residential land values increase by four per cent, while agricultural land rose by 17pc.

But while Horsham’s residential rates dropped by 0.6pc, they rose 11.8pc for agricultural land.

“We believe that is a totally unfair and inequitable position, so we are really focused on giving support to councillors to make better decisions to resubmit their budgets,” Mr Jochinke said.

“That is a very live option and a very do-able option but it’s going to come down to the gumption of councillors to do the right thing.”

But Horsham mayor Councillor Pam Clarke said legal advice showed only minor changes were allowed, under the Local Government Act.

“We can change our budget if it is reasonable, but what they are asking for is a massive change,” Cr Clarke said.

‘You can’t make a wholesale change to your rates structure and budget after the consultation period is finished.”

She said drawing up a new budget would cause huge financial problems.

“We would be insolvent, council would be insolvent if we can’t get rates notices out on time.”

Cr Clarke said Horsham was committed to carrying out a full, independent review of its rating system.

At Monday night’s council meeting, Councillors John Robinson and David Grimble asked the council to produce a revised 2018-19 budget.

In separate motions, the pair said they wanted to achieve an even rate distribution, across the shire.

They called for any rates increase to be capped at 2.25pc across all land classes, but their motions were defeated five to two.

The motions came after a petition from Wimmera farmers, which called on Horsham to adjust the rating differential.

It currently stands at 80pc of the general rate for agricultural land.

Councillor Grimble said farmers would pay more than 90 per cent of the rates increase, this financial year.

Rates levied by council had increased by $699,000, with farmers paying $646,000 of that.

“That shows the inequity in our current rating strategy,” Cr Grimble said.

“That’s why we called for a delay and to do a further review.”

Cr Grimble said as rates could be levied in four installments, there was provision to vary the amount throughout the year.

“That September rate notice (the first) is one of four, so you can adjust that, if you over or under charge.”

Cr Grimble also praised the neighbouring Northern Grampians shire, which he said had taken into account the impact of the revaluation on farmers.

“They are no different to us,” Cr Grimble said.

“They had a look at the process, they had a look at the figures and the impact and adjusted their budget accordingly.”

Mr Jochinke said Northern Grampians had show leadership by adopting a budget that balanced the rates increase between residential, farm and business land to 2.25%.

Councillor Robinson said the whole thrust of the State Government’s Fair Go rates push was to provide a fair and equitable distribution of the rate burden.

“Land values have gone up substantially in our area,” Cr Robinson said.

“Some of the assessments in our area have gone up 60 per cent, one was a 70pc increase and that’s unsustainable.”

Cr Robinson said his motion would require savings of $360,000, across a $53 million budget, which was feasible.

Bungally mixed farmer Sam Eagle said his property was facing a 12 per cent rate increase this year, but only 30pc of his land had been revalued so far.

“Councillors need to work together to find a solution,” Mr Eagle said.

He said he expected further rate increases, as the rest of his property was progressively revalued, “until they catch up.”

Mr Eagle said it was not about farmers and residents subsidising each other.

“Land prices have gone up, we agree, but there needs to be a compromise, on both sides.”

But Municipal Association of Victoria chief executive Rob Spence, who has more than 30 years experience in local government, said he had never heard of a council changing a budget it had set.

He said once a budget had been passed it was extremely difficult to change.

“I believe they have to go through a revised budget process – they would have to rework the whole thing.”

“I don’t think I have ever known of a council that has ever done it – I can’t conceive of how you would unwind the whole thing and start again.”

He said it appeared it was too late for Horsham farmers.

“If I were the farmers,  I would be advocating to get resolution next year, not this year.

“I think the horse has bolted.”