INDIGO Shire Council was given the green light by the Victorian Electoral Services Commission (ESC) to impose a rate rise of 7.54 per cent.

Council applied for the rate rise variation at its monthly meeting on 13 May, looking to transfer the Environmental Management Contribution (EMC) to general rates in accordance with a Victorian Local Government Minister’s directive.

The current rate cap set by the state government is three per cent.

The ESC released its decision on Monday, and said given the transfer was a revenue-neutral and council did not propose any change to total revenue collected or services delivered as a result of the higher cap, it would approve the rate rise 4.54 per cent above the cap.

“The application has sufficiently demonstrated a long-term need to retain the revenue, and that the higher cap is in the long-term interests of ratepayers and the community,” the ESC said in its final decision papers.

“The financial information provided indicates that Indigo is not able to absorb the $801,624 it would forgo by removing the EMC without the corresponding increase in its general rate revenue.

“Without this revenue, Indigo would be unable to maintain its waste and recycling services at the levels supported by its community.”

Mayor Sophie Price said the revenue-neutral change would have no impact on council’s total revenue.

“At the same time, the EMC will be removed from rate notices," she said.

Indigo Shire Council endorsed its draft new council plan, revised community vision and draft 2025/26 Budget for public exhibition at last week’s meeting.

Cr Price said the documents have been directly shaped by what residents across the shire told council through various community engagement initiatives.

"We're particularly proud of the way these draft documents reflect what our community has told us matters most to them," she said.

"We've listened carefully to our community and developed a council plan and budget that balances the needs of our diverse townships with the significant challenges facing the local government sector, particularly around financial sustainability."

Cr Price said despite significant financial pressures facing all Victorian councils, Indigo Shire has developed a draft budget that maintains all current services while introducing several important new initiatives.

"Our draft budget includes an $11.62 million capital works program of which $3.3 million is being carried forward from the current budget to complete projects already approved," she said.

Other key budget initiatives include $4.6M for new, renewed, and upgraded roads, bridges, and pathways, $500,000 (in addition to the $100,000 in the current budget) to replace the roof at the Beechworth Town Hall, $1M to upgrade facilities at the Rutherglen Caravan Park and $750,000 for the replacement of McFeeters Road bridge in Beechworth.

The suite of strategic documents are available for public comment by visiting the ENGAGED INDIGO website.

Submissions close on 4 June and council will consider all submissions before the final council plan and budget are adopted at the next council meeting on 23 June.