The draft 2022-23 budget, released on Wednesday night for public consulation ahead of its formal adoption by council in June, includes over $6.4 million for capital works focused on environmental sustainability and over $19 million for community infrastructure over four years for projects including various community hubs, kindergartens and the Royal Park Buninyong upgrade.

"This is the first time [council] has gone out seeking public feedback [for the budget] six months in advance," City of Ballarat mayor Daniel Moloney said, referencing November's extensive community consultation.

"It's a budget that we're particularly proud off - the overwhelming feedback from people was they wanted to see a more sustainable, environmentally focused budget, and this is one of the biggest budgets we've had in that regard."

Headlining this historic investment is $4.6 million for the circular economy precinct, $500,000 for the tree canopy project, $200,000 to clean up the Yarrowee River - including movement towards installing a large floating litter trap - and $95,000 for electric vehicle charging stations.

The budget also pours $440,000 into a recycled water scheme for the city's bourgening suburbs in the west and $375,000 to make council-owned buildings more energy efficient.

Speaking at council's ordinary meeting on Wednesday evening, Cr Belinda Coates said the draft budget was a nod to the seriousness with which council takes the threat posed by climate change.

"With the findings of the latest IPCC report, we don't actually have time to drag our heels on what action we can take," she said, adding it was important council could "hand on heart say that we are really taking our future seriously".

With a view to the city's unheralded growth, the budget also devotes considerable funds to "intergenerational" assets.

"[We're] making sure that we're investing in our core infrastructure to ensure the liveability of this city continues," City of Ballarat chief executive Evan King said, noting $47.6 million would be spent on the renewing the city's natural and built assets.

To that end, council is committing $1.95 million for the Bakery Hill precinct upgrade, $14.7 million for road repairs, $800,000 for footpaths and cycling paths and $3.84 million for general upgrades to community-owned infrastructure.

There's also millions for an airport upgrade, the stage three works for Her Majesty's Theatre and the Wendouree community recreation precinct - all of which will be delivered in partnership with state or federal government.

READ MORE: Has Ballarat been abandoned by state and federal government?

With total borrowings at their lowest level since 2015-16, council is proposing to borrow nearly $13 million to help deliver some of its critical infrastructure projects.

The green waste charge will remain the same while the general waste charge will increase by $26 due to the Victorian government landfill levy.

But council has also opted to raise rates by an average 1.75 per cent across the board - in line with the state government-imposed rate cap.

Notably, the proposed 1.75 per cent rate rise is not uniform. Under the changes, the average residential property would attract $1588 in rates in 2022-23, up from $1492 last year - representing a 6.4 per cent rise.

Commercial and industrial rate payers, meanwhile, would effectively enjoy a rate cut due to a reduction in the differential rate applied to commercial and industrial properties.

It comes as annual consumer inflation soars by 5.1 per cent - its highest level in more than two decades - increasing pressure on household budgets and making a pre-election interest rate rise all the more likely.

The flagged decision to raise rates appears to have been influenced by two overriding considerations: the first being the rising costs that attach to climbing inflation; the second, and arguably more significant, being cost-shifting on the part of state and federal government, with both reducing or cutting grant funding in various ways.

The draft budget, for instance, reveals a cut of $5.6 million in commonwealth funding for roads, as well as an undisclosed funding cut in the commonwealth financial assistance grant, which the federal government reduced from 0.6 to 0.55 per cent of Commonwealth tax revenue in March.

Meanwhile, the Victorian government has also reduced funding for libraries and aged services, with the latter cut by more than $500,000, forcing council to find those funds elsewhere within its own constrained budget.

The proposed rate rise attracted considerable debate in the council chamber on Wednesday, with a number of councillors expressing discomfort at the proposed arrangements in an environment marked by cost-of-living pressures.

Mr King indicated council would revisit the issue with a view to further relieving pressure on low income earners and pensioners.

City of Ballarat will host several community consultations on the draft budget in coming weeks before a final budget is adopted in June.

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