There was a long list of amendments to the rating strategy, including rates differentials of:

Ararat Rural City Council will not implement a rates rise next financial year, but many farmers believe they will still end up paying more as land values, and hence the rates they pay, will likely increase. 

Councillors met for the second time in a month to debate adopting Ararat Rural City’s key financial documents, including the Council Plan.

The budget was adopted unanimously but deputy mayor Jo Armstrong voted against the rating strategy after a majority of councillors voted down her attempt to raise the municipal charge from $92 to $140.

Cr Armstrong said she was a "very strong proponent" of a municipal charge, saying it was a more fair method of raising revenue as most residents will make use of administrative services at some point.

Cr Armstrong said she was challenging councillors to increase the "very conservative" charge to move towards a "true user-pays system".

Cr Peter Beales agreed that the municipal charge was "very low".

Cr Fay Hull said the citizens rates jury had been very helpful but they had not been provided with the municipal charge option to consider and it was not appropriate that councillors consider it now.

Cr Hull said she was also hesitant to increase the municipal charge in the same financial year as removing pensioner rebates.

In her response before a vote on the amendment, Cr Armstrong said the council had modeled municipal charges of up to $170 in the next year and $220 afterwards.

"The actual effect of a $140 charge would still leave general ratepayers with a reduction in the rates," she said.

Council has also proposed to give any ratepayer whose land was previously classified as a farm will have any move to the general rate introduced after a 12-month transition period.

“That any ratepayer affected by a reclassification of the farmland to general land can make application to Council for an exemption of interest on any outstanding rates for the affected property for 2018/19 until 30 June 2020,” the draft rating strategy stated.

In later debates, Cr Beales said he council was "living beyond our means" as a rural municipality.

Cr Beales said other levels of government were leaving the council with the responsibility for funding more programs and leaving council to take the blame.

Councillors adopted an amendment “that the current differential rate ratios apply for 2018/19, 2019/20 and 2020/21 to allow a reasonable degree of stability in the level of rates burden as required under the Act”.

Cr Hull said council had to pay for major facilities like Gum San, the PAC, the pool and Alexandra Oval, which were enjoyed by the whole region.

"The people in the municipality like their services but we have to cut the cloth within our means," she said.

"We are doing the best we can with the resources that we have and we are not taking on significant loans...which would make it difficult for future councils."

Cr Frank Deutsch said he came to council too late to make a significant impact on the draft budget.

Cr Deutsch said yearly rates changes were like "rearranging deckchairs on the Titanic," he said.

"We are heading towards an iceberg unless we change direction on our rating strategy."

Cr Deutsch said there was a great opportunity for the state government to assist councils that did not have many options with rates revenue.

Councillors brought a point of order as Cr Deutsch's comments were related to the ratings strategy, which had already been passed.

During debate on non-budget motions, a member of the public gallery interrupted the meeting.

The council meeting was interrupted by a member of the public gallery, who accused the council of being misleading over its policy of no rates rises for next year.

"I'm sick of you all talking about 'no rates rise'," the gallery member said,

"Try telling that to the young farmer who could be looking a a rates notice increase of 20 per cent."

Ararat Rural City mayor Gwenda Allgood said she respected the comments made by the public gallery member.

The person who interrupted then departed the council meeting.

A a draft meeting earlier this month, farmers spoke out on increasing financial pressures and former members of the Ratings Strategy Citizens Jury claimed some of their decisions were ignored by the council.

The issue of council rates and their impact of farmers has been running hot in western Victoria this week.

On Monday, Northern Grampians Shire Council heavily reduced its planned increase for farm rates, but rates for the rest of the shire will rise.

Horsham Rural City adopted a 2.25 per cent with residential rates decreased by 0.6 per cent but farm rates increased by 11.8 per cent.

Farmers from Horsham Rural City, Yarriambiack, Hindmarsh, West Wimmera and Northern Grampians shires also met at Kalkee on Friday to discuss rates issues.