Warrnambool Ratepayers Association (WRA) suggested the rates freeze for all properties in a submission to the council's draft budget at a cost of $738,000.

In response, the council claims the impact of a one-year rates freeze to all properties would have a cumulative impact to the long-term financial position of council.

"Over a 10-year period, the impact of a one-off rates freeze would reduce council's income over the 10-year period by $7.8 million," a response in the council's agenda for Monday's meeting said.

The budget was adopted at the meeting.

"This would have a significant impact on council's ability to continue delivering services to the community into the future and maintaining and upgrading community assets," the report says.

"Council has encouraged people to seek rate relief through hardship provisions which exist to assist those experiencing financial difficulties."

A call for a five-year freeze on sporting fees for football and netball clubs was also knocked back.

The council has waived this year's winter fees for sporting clubs across the municipality due to the COVID-19 pandemic which has so far prevented competitions getting off the ground.

AFL Western District wanted those fees to be frozen at 2019/20 levels for the next five years as sporting clubs, and sponsors, tried to get back on their feet.

In response council said that in 2017 a review was conducted of seasonal fees for sports grounds users in order to recoup some of the cost of maintaining grounds.

"Council has 16 grounds to maintain for Australian rules football and recoups from clubs less than 25 per cent of costs," the council report said.

"Council is also looking to create a more equitable system of sports facility subsidies.

"Council will review summer season fees at the appropriate time."

A number of other WRA proposals were rejected, including the waiving of all shop and community fees, at a cost of $285,000, and deferring the Learning and Library Hub project by one year to save $5.5 million and $500,000 in operating costs.

"Council has obligations under the joint agreement with South West TAFE and Department of Education to deliver the project within an agreed timeline," the report said.

"Council has also entered into an agreement with the Department of Treasury and Finance to obtain a low interest loan."

That 10-year loan is expected to save the council $280,000. The 2020/21 budget includes an allocation of $1.95 million to help the community and businesses recover from the impacts of COVID-19.

"The budget acknowledges the financial hardship facing many while investing in projects that will help stimulate the economy during and after the COVID-19 pandemic," mayor Tony Herbert said.

"We have aimed for a balance between spending and restraint. We know that we have to stimulate our economy in the wake of the pandemic and that we must continue to renew or replace assets.

"But we also understand that some in our community are in difficult circumstances. With that in mind we have increased the rates by two per cent rather than the 4.5 per cent allowed for by the Essential Services Commission.

"As a result of a number of positive waste initiatives we have been able to reduce the waste management charge which means that on the average property the increase in the overall rates and charges will be in the order of 1.2 per cent."

Submissions were also received in relation to community projects, including from John O'Brien about access to the Japanese Gardens from Grieve Street and from Lyn Burns about a lighting upgrade between Heatherlie and the Uniting Church.

Those projects are considered by the council to be within the scope of the Community Small Infrastructure Fund.

The WRA also proposed to defer construction of new change rooms and club rooms as part of the Reid Oval redevelopment, which could save $3 million in borrowings and leave $1.6 million in the budget for stimulus measures.

Again the council said it had obligations under the grant agreement and a low interest loan was estimated to save $335,000 over the 10-year life of the loan.

"It is unlikely the Victorian Government would provide additional funding for the Reid Oval project beyond the $7 million it announced in 2018," the papers said.

"The delaying of the Reid Oval redevelopment and the Learning and Library Hub would save a combined $110,000 in the 2020- 2021 year. Ultimately, these proposed steps are likely to present council with additional costs in future years or require a reduction in the scope of these projects due to the cost escalations caused by a deferral."

Council also knocked back WRA's free parking plan at a cost of $1.4 million.

"Parking is currently a user pays system. Eliminating paid parking reduces council's capacity to manage and improve car parking in the city and means that the cost of car parking enforcement is paid by all residents."

Waste management fees through waste reduction initiatives have been cut by 2.79 per cent or $11 per property to $379.09 and the average residential rate bill increase is to $2053 from $2029 in 2019-20 - $24 for the year.

The council's COVID-19 support package comprises:

"Council will review these efforts during the year and set a revised budget if required to best meet the needs of our local community and business," Cr Herbert said.

"We will ensure we are reaching those with the greatest needs and we will leverage support from other levels of government to add value to our recovery efforts."

Council has a substantial capital works program with an emphasis on asset renewal with an allocation of $18.5 million for asset renewals, upgrades and expansions.

Capital works highlights:

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