Warrnambool ratepayers may be spared a rate increase above the cap for this year, but they could still have to fork out in 2022/23.
The city council said it would seek to defer that two per cent rate increase above the state government-imposed cap for two years as the backlog of asset renewal projects was only set to grow.
But it said it was likely that the council would have to apply to the Essential Services Commission again for approval, but only if councillors voted for that to happen.
The council had been given the OK to charge ratepayers an extra two per cent on top of CPI increases last year and this year, but councillors voted on Monday not to this year because of the financial impact of the coronavirus pandemic.
With the proposed two per cent CPI rate increase coming with a fall in waste charges, rates will effectively rise by only 1.2 per cent - or $23 for the average ratepayer to $2053.
But that has upset the ratepayers association who wants to see the city council freeze any increases.
Warrnambool Ratepayers Association president Brian Kelson said rates should be frozen because the council had already got an extra two per cent last year after it broke the rate cap.
"Why are we increasing rates when our community is suffering the economic effects of the COVID recession?," Mr Kelson said.
"This could be the difference between a business opening back up or closing their doors for good, or a resident having to let their house go."
The association has called for a review of all spending, suspension of all non-essential projects and for the results of the organisational review to be made public.
A number of councillors at Monday night's meeting spoke out about the need to push ahead with projects to stimulate the economy and boost jobs.
Councillors also praised the work of staff for the difficult job they had done putting together the coronavirus-hit budget which saw some projects put on the backburner.
The council's strategic resource plan outlines the council's intention to impose the extra rate rise in 2022/23 to assist with the asset renewal backlog which would only increase over time.
"The implication of this will be decreased asset quality levels and potentially the decommissioning of community assets," it says.
Mr Kelson said ratepayers deserved better than to be bailing out the council with a rate increase.
The association said cutting back on asset renewal and then borrowing $3 million to build offices in the old library space were "obscene and unnecessary".
"This should not be happening while we are still recovering from the economic downturn," he said.
"Council charged over the odds last year, the community is suffering right now. Unemployment in our region has risen.
"Our council is pushing all our rates up by two per cent,
"This followed the increase last year which 97 per cent of residents said they didn't want.
"The council shouldn't expect ratepayers to bail them out, they need to investigate where every dollar is going and if it needs to be spent. I don't think they have done enough until now."
The association will present a submission to the council on the budget.
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