Warrnambool City Council has started spending the extra rate revenue it collected this year with work beginning on upgrading the footpath along the carnival site on Pertobe Road.
The list of projects that would use the extra money collected came in under budget, and the council has decided to increase the number of works to clear the backlog of footpaths due or overdue for replacement.
The council got special permission to raise rates above the state government-imposed cap, a move that infuriated vocal ratepayers.
Works to replace the footpath along Pertobe Road will be followed by more from the Cannon Hill Portuguese monument to Pertobe Road which expected to be finished by Christmas.
Stretches of footpath along Russells Creek, St James Park and Gateway Road will be completed in the New Year.
Chief executive officer Peter Schneider said the footpath works would cost $374,000 - less than what had been allocated in the budget.
"With this saving, we expect to be able to complete up to 600 linear metres of additional footpaths this financial year and remain within budget," he said.
The locations of these additional works are being finalised.
Mr Schneider said an audit of every footpath in the municipality last year made it clear that the city's footpath network was in "serious need of rehabilitation".
"These additional funds made available through the rate cap variation will go some way to addressing this," he said.
In May, the Essential Services Commission approved the council's submission to vary rates by an additional two percent above the 2.5 per cent cap.
Mr Schneider said that all funds generated by this variation to the rate cap, $31 for the average residential household, would be spent on asset renewal.
"Warrnambool City Council was one of only two councils in Victoria given permission to implement a rate cap variation," he said.
"All funds raised through the variation will be used for the renewal of assets like footpaths and playgrounds.
"Our community places a high value on these important pieces of public infrastructure and this additional revenue will help ensure they meet community expectations."
The remainder of the additional funds generated from the rate cap variation have been earmarked for the replacement of an ageing playground in Pappas Drive as well as renewal works to the Hopkins River Bridge.
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