The shire's draft budget for 2009/10 includes an average rate increase of $97 to $1207.

A Municipal Association of Victoria survey of councils' draft budgets statewide shows the average rate increase for Victorian councils is 5.16 per cent or $64.

The draft budget was due to be voted on at last night's ordinary council meeting.

If it is passed, only Wyndham City Council, which covers the area around Werribee, will have a higher rate increase in Victoria.

Ballarat City Council's budget, which was passed last week, included an average rate rise of $45, though residents there still pay higher than average rates of $1384 a year.

Mayor Bill McClenaghan said that some public submissions on the draft budget had focused on the size of the rate increase.

But he said the shire's infrastructure funding gap meant the rise was "not unjustified".

Rural councils also had a rate of inflation higher than the Consumer Price Index because of high staffing levels, he said. The draft budget also includes a proposal to employ

three new staff.

"If people want lower rates okay. (But) are they prepared to accept no roadworks or less roadworks and lower service levels, because that's what it means," Cr McClenaghan

said.

Among the capital works projects outlined in the draft budget are the $125,000 replacement of the Calambeen Park diving tower and $235,000 toilet upgrades in Trentham

and Clunes.

Other initiatives include: the development of asset-management plans for roads, bridges and council buildings ($85,000); the allocation of carbon-negative initiatives

($50,000); and a review of the bike strategy ($5000).