STRATHBOGIE Shire residents will be hit with the biggest rate rise in Victoria following the passing of its draft budget last night.
Residents will be slugged with a 15.1 per cent rate hike as the struggling council fights to keep up with vital road and infrastructure works.
The vote came ahead of a key high-level meeting expected in Melbourne today to discuss the large number of struggling rural councils.
The budget passed at last night's Strathbogie Shire meeting was a significantly amended version of the original draft budget released last month.
The 2010 draft budget had projected a 15.1 per cent rate rise for all residents, plus an annual extra 20 per cent rate levy for business owners.
The council had also proposed to remove a land management rebate scheme which would have hit farmers with even bigger rate increase.
The original draft budget caused an uproar in the community.
Last night the budget was passed with only a five per cent annual rate levy for business owners and with the rural land rebate in place for at least this year.
Strathbogie Shire mayor Howard Myers said the council had received many submissions on the draft budget and had "compromised" with the community.
"Council amended their budget and I think there was a reasonable degree of acceptance with the outcome," Mr Myers said.
"I think people accept the position that Strathbogie Shire finds itself in and we have to address the problem and we've made cuts in our organisation as well."
The council will cut back on $520,000 of originally budgeted expenditure to contribute to infrastructure renewal projects.
Meanwhile, the Victorian Farmers Federation, Victorian Local Government Minister Richard Wynne and Shadow Local Government Minister Jeanette Powell were expected to meet in Melbourne today to discuss the large number of struggling rural councils.
VFF senior vice President Peter Tuohey said the meeting would be an opportunity for farmers to make the case for change directly to key decision makers prior to the upcoming State Government election.
"Thousands of farmers from across Victoria would have received rates notices in recent weeks with increases as high as 40 percent on 2009 notices,'' Mr Tuohey said.
"We will be meeting today with the minister and the shadow minister to convey our concerns regarding the sustainability of the current model and to reinforce the reform agenda which needs to be fast-tracked to ensure a more even spread of the rating burden."
Last month The Weekly Times reported that many rural property owners were paying higher rates than people living in Melbourne's wealthiest suburbs.
