The council is the only Grampians council to flag its intent to apply for a rate cap variation with the Essential Services Commission (ESC), and one of seven statewide.

Pyrenees Shire mayor Ron Eason said the proposed 3.5 per rate cap for 2017-2018 and 2018-2019 would allow the shire to increase its spending on roads. 

Council is responsible for in excess of 2,000 kilometres of road which includes 723 kilometres of sealed roads and 1,292 kilometres of unsealed roads. 

The additional 1.5 per cent in rates revenue is expected to raise in its first year $114,700 and $118,700 the following year.

Cr Eason said council had considered alternative funding sources, a review of current services, current strategic direction and community opinion before deciding to flag the rates rise. 

“In the 2016 Community Satisfaction Survey residents sent a clear message that they wanted increased investment inroads which was backed up by the Gravel Road consultation conducted in August 2016.

“But to do this, we need to bring in additional revenue above the 2 per cent per cent rate cap allowed by the state government.

“Council will quarantine the additional rates revenue for road renewal projects.”

Horsham, Casey, Hindmarsh, Queenscliffe, Towong and West Wimmera have also indicated to the ESC that they will consider a rate increase above the 2 per cent increase set for 2017-2018.

The Commission last year rejected an application for rate cap variations by City of Ballarat, Casey and Wyndham. 

Commission Chair Ron Ben-David said councils would need to demonstrate higher rates were consistent with the long-term interests of their communities.

It is still open for other councils to apply. The seven councils will still need to formally decide whether to move ahead with the application. 

Councils will have until May 31 to submit their applications.