The newly elected council voted unanimously to accept the rate cap even though council’s long-term financial modelling factored in seeking an exemption for 2017-18 and beyond.

But the decision to sideline Baranduda Fields sporting complex, due mainly to the failure to secure federal funding, the 2015-16 budget surplus of $1.92 million and lower than expected waste management costs convinced councillors to hold rises at the rate cap amount.

Baranduda Fields did attract $650,000 from the Victorian Government late last week, but no explanation was provided on Monday night for what the funding would now be used for.

Council had committed to $9.5 million in borrowings for the sporting complex to match the $10 million sought from the federal government.

​Council financial modelling revealed 4.25 per cent rate rises for the next 10 years, generating $44 million in revenue.

It had to notify the Essential Services Commission by January 31 of its intention to seek an exemption.

Cr Ron Mildren said sticking to the rate cap was a “step in the right direction” at keeping rates at an acceptable level.

Cr Danny Lowe confirmed he campaigned on putting “downward pressure” on rates, but was not adverse to “good debt”.

“There would not be one person in this room who hasn’t used good debt to get ahead,” he said.

Cr Libby Hall said any rate rise above CPI was “unacceptable” and Cr Tim Quilty said he wanted rates kept below CPI and hoped one day there would be a zero rate rise.

Cr Kat Bennett said the council was “embracing” the rate capping challenge.

Mayor Anna Speedie said it was a “pleasure” to deliver good news to ratepayers despite being part of previous councils which framed long-term financial modelling for rises above the cap.

“Without reviews, cost-saving measures and hard work each week by the council  and council teams our financial future could look very different,” she said.

“This is a significant achievement given the breadth of new infrastructure and projects we’ve seen over last 18 months.”