It’s likely Wangaratta council's municipal rates will be set at the maximum rate cap over the next 10 years according to a draft financial plan now out for public consultation.

The community is being asked to comment on the draft that contains an underlying $30.3 million deficit and will guide the rural city until June 2035.

Constraints in this fiscal outlook are partly due to the Fair Go Rates Cap and assumptions of annual rate increases averaging two per cent from 2028-35, following on from 2.5pc in 2027 and 3pc this year.

Under the plan, council expects 1.25pc growth in its rating base due to new residential development, subdivisions or capital improvements across the local economy.

However, given council’s financial position and the projected cash balances over the life of the financial plan, it reads “it is not feasible to foresee a scenario where council would not increase rates by the maximum rate cap set by the Victorian Government”.

The plan also notes that EPA levy increases have been at historical highs and if this continues council will need to reevaluate its forecast increases in waste charges.

Other factors include a projected 2pc rise in material costs for capital work year on year, and wage growth for council staff also falling below CPI in recent years.

Wangaratta council released the plan at its August council meeting in a financial climate that was described by councillors as tight in every aspect.

Council director of corporate and leisure, Sarah Brindley, said the draft financial plan includes a range of information about the expected forecast and changes in council's financial performance over the next 10 years including rates, borrowings, key projects, and assumptions that underlie the financial performance.

Cr Tania Maxwell noted that “things are tight at the moment everywhere, for everyone and I’d just like to reiterate that so people can understand that council has to make some pretty tough decisions”.

“Predominantly those decisions are based around fiscal potential,” she said.

Outlooks have waste fee increases at 3pc, user fees at 3pc, CPI cost escalation at 2pc (from 2028), wage growth at 3pc, and interest rate on borrowings at 4.88pc.

Mayor Irene Grant said there was a need for councillors to focus on the core business including the things that need to be delivered to the community.

"This is why the relationship to our council plan and financial plan is so important as it enables us to work with our community to deliver the things that they consider to be priorities," Cr Grant said.

“While we have these documents, nothing is ever set in concrete and we continue to ask our communities on how things are tracking and what’s important to them."

The public has until 26 September to make a submission to the plan.