Aaron Scales made the comment as the council adopted its 2017-18 budget which includes the increase that exceeds the Victorian government’s two per cent rates cap.

“Whilst I don’t necessarily like the 5.5 per cent increase to the rate it is required for us to deliver increased services to our community and I do believe that our community will hopefully be this time appreciative of our efforts with our budget,” Cr Scales said.

He said it was apparent residents were upset that last year’s failure to utilise the full exemption had hurt.

“Some of the cuts we made really cut right into the fabric of our community,” Cr Scales said.

The 5.5 per cent jump will allow for pools to be open for an extra fortnight, greater spending on library books and fast-tracking of playground upgrades.

Money will flow to building the Upper Murray Events Centre, beautifying Tallangatta and upgrading Eskdale’s netball courts.

Cr Scales added a point to the budget motion which acknowledged “our ratepayers cannot continue to afford to pay rates increases above the ministerial cap” and help was needed from governments.

Mayor David Wortmann said the council backed rate capping “but it means that state and federal governments need to help make up the shortfall and better support small rural councils”.

The shire’s community and corporate services director Jo Shannon told the councillors Towong’s rates compared well to other North East rural municipalities.

She pointed to 2015-16 data showing Towong’s average residential rates charge was $1326 compared to Indigo ($1779), Alpine ($1696) and Benalla ($1576).

Further data showed rates as a proportion of household income in 2016 amounted to 2.4 per cent for Towong, below Alpine (3.3 per cent), Benalla (3.2 per cent) and Indigo (2.7 per cent).