The budget proposes an overall rates and charges increase of 7.9 per cent. The state rate rise average for municipalities is seven per cent.

The draft budget was released at a council meeting last night.

It will be placed on public exhibition from next Wednesday until July 13 with submissions from the public invited.

Hepburn Shire mayor David Smith said councillors and officers had worked closely with the community to develop a budget to fulfil as many community wishes as possible.

He said the budget had taken several months of careful planning with the community involved through a series of public meetings across the shire.

"It's a great result with a large range of projects funded right across the shire," he said.

"Many small communities will benefit with projects proposed for funding."

The budget was developed in collaboration with the council's 10-year financial plan.

Mr Cowley said the plan was an essential tool for a sound financial planning.

"It is based on delivering an acceptable level of service to the community but ensuring the debt remains at an acceptable level for financial sustainability. It also provides the framework for a sustainable asset management program,"

Mr Cowley said.

The 10-year plan proposes that by year 2016-2017 the rate increase will be 5.7 per cent.

"This decrease will take place gradually over the 10 years with the exception of 2009-2010 when it is anticipated there will be a 10.8 per cent increase to allow the construction of a $5 million administration building to bring all

of council's services under the one roof instead of spread across four separate sites," Mr Cowley said.