THE Indigo Shire plans to increase rates and charges by 4.5 per cent next financial year after initially considering a 6 per cent rise.
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Under the proposal, $6.4 million would be spent on capital works.
The program includes $565,000 on building upgrades at Wahgunyah Recreation Reserve, $500,000 on widening the Allans Flat Road and $240,000 on improving drainage at Chiltern, Beechworth and Rutherglen.
The capital works budget is about $4 million lower than the 2014-15 capital works budget, with a council report noting the figure is a “sizeable decrease”.
A report notes there are “significantly changing financial restraints” being placed on the shire, with efficiencies being found in the organisation.
The budget is the first to be put forward by a Border council ahead of state government rate capping in the 2016-17 financial year.
Mayor Bernard Gaffney said the council had trimmed costs where possible but would not cut services.
“This budget has an underlying surplus, which demonstrates we are economically viable and financially sustainable,” he said.
“This is the best result for many years.
“Our rate rise was originally planned to be 6 per cent but this council has worked very hard to bring this down to a rise of 4.5 per cent.”
Cr Gaffney said the council would “focus on economic and community development of our towns, starting in Chiltern”.
“It is not enough to just cut rates,” he said.
“We have to look at the bigger picture and ways to stimulate our economy, grow our tourism and promote our potential.”
The draft budget will be debated by councillors next Tuesday at the shire offices at Mayday Hills in Beechworth.