Mayor Samantha McIntosh said a final report on the implications of the controversial rate capping scheme will go before councillors at the first council meeting of the year next Wednesday. 

The council was one of 10 Victorian municipalities to apply for an exemption from the rate capping scheme through the Essential Services Commission last year.

The policy was brought in by the state government in response to community outrage over continually growing council rates. 

But the council’s previous bid to raise rates by 3.7 per cent was rejected by the ESC because it was not deemed in the long-term interests of ratepayers “to fund the one-off cost or funding shortfall” identified by the council with a permanent increase to the rate base.

Local Government Minister Natalie Hutchins set the cap on the state’s council rate rises for 2017-18, matching the 2 per cent Consumer Price Index (CPI) forecast by the Department of Treasury and Finance late last year.

Cr McIntosh said she met with the leaders of surrounding Central Highland shires to lobby Victorian treasurer Tim Pallas about the implications of rate capping during a visit to Stawell last Thursday. She said the fate of more than $960 million worth of major projects and up to 9000 jobs for the Central Highlands region hinged on government funding.

“But this will be significantly harder, if not impossible to achieve, in a 2 per cent rate capping environment,” Cr McIntosh said.

She said a decision on whether the council will apply for another rates variation was in the hands of councillors. She is also pushing for a review of how local government is funded.

“Council has very few options available to it to raise revenue other than from rates,” she said. “What we do need, is a greater share of the taxation revenue pie,” Cr McIntosh said.

The council’s chief executive Justine Linley estimated the rate cap would result in a $10 million revenue loss over the next two years. 

She also said significant cuts to the council’s more than 100 services across the region were inevitable.  The state government has maintained the rate cap was imperative to protect Victorian ratepayers from uncontrolled rate rises. Councils wishing to apply for a higher cap have until March 31 to apply.