Ballarat’s planned 6.5 per cent rate hike was reduced to 5.5 per cent at Wednesday’s ordinary council meeting, with an 11th hour “revised procurement process” credited for the turnaround.

Councillor Amy Johnson called for a one per cent reduction in rate increases across the board, claiming new savings achieved through insurance should be passed on to reduce the financial burden to the community.

Mr Kallio said a revised procurement process delivered “substantial savings” in excess of $600,000, but that was only confirmed last week following an

extensive tender process. 

“Until council formally accepted the financial arrangements, it was not possible to include those savings as part of the budget process,” he said.

“As soon as those arrangements were finalised, council determined to immediately amend the proposed budget to pass on those savings.”

At 5.5 per cent, Ballarat’s 2014-15 rate increase still sits well above the CPI of 2.9 per cent, despite cash

reserves held by the council.

Mr Kallio said a $25 million loan taken out this financial year included $17 million for aquatics infrastructure, much of which was under way.

Another $8 million was in reserve for a Civic Hall redevelopment and would ultimately be used to deliver the council’s component of the project, he said.

“Council has a detailed strategy in place, including fully funding the $230 million growth fund, to meet future infrastructure requirements as the city grows, including major roads, drains, footpaths and community facilities,” Mr Kallio said.

“The long-term financial strategy ensures that all key projects are able to be funded with rate rises kept to a minimum.”

The $230 million growth fund will be funded through yearly contributions over 20 years.

rachel.afflick@fairfaxmedia.com.au