In a rare move, a western Victorian council has passed a rate cut for the upcoming financial year.
The Ararat Rural City Council will cut its rates by one per cent in the next financial year, to help residents struggling with the financial effects of the coronavirus pandemic.
"Council is very aware of the financial difficulties many are facing, and the huge impacts on the local economy, the COVID-19 event has caused," council chief executive Tim Harrison said.
"The cut to general rates will help keep rates as close as possible to last year and council hopes this goes some way to ease some of the stress our residents are facing."
The move has been welcomed by the president of the Victorian Farmers Federation David Jochinke.
In a tweet, he said the council had delivered "a fair and balanced budget, [by] not increasing the burden on farmers and engaging the community."
Mr Harrison said the Ararat council was on its own in Victoria when it came to cutting rates.
"I think we are the only council so far that I've heard of that is actually decreasing its rates," he said.
Ballarat council is proposing a rate freeze in its draft budget, while other councils including Horsham and Warrnambool have proposed rate rises of two per cent.
Mr Harrison said despite the rate drop, council was still looking at a $13 million capital works program.
"Over the past 12 months we have found some efficiencies — more of our people who work here are doing work on the ground rather than managing people who are doing work on the ground," he said.
"Our hope is to deliver more to our community and cost less money as we move forward."
Mr Harrison also said an increase in federal and state government spending, in a bid to drive the economy through the economic downturn, had made it easier on regional councils.
"It's certainly assisting our budget," he said.
