Councillors passed the draft budget on Tuesday night which came with a warning that rising inflation would hit infrastructure projects and put a significant strain on the council's long-term financial position.

The budget includes a $1.82 million operating profit and a capital works program of $16.88 million - but that includes a buffer for an expected increase in infrastructure costs from rising inflation.

The council imposed the capped 1.75 per cent increase on rates but with the cost of rubbish fees rising 9.18 per cent, the overall increase will be 2.92 per cent.

State government levies, CPI increase and "significant increases" in fuel costs are behind the jump in waste charges. User fees and charges are also set to rise 3.75 per cent.

About half of the capital works budget will be spent on roads - $7.62 million - and $1.87 million on IT and vehicle fleet replacements.

Under its $1.73 million building works program, Camperdown saleyards' roof will be upgraded as well as the Camperdown day care and shire swimming pools.

Cr Jamie Vogels said the council was fortunate to be in a good financial position because we were heading into "unstable times".

He said he was concerned the buffer amount put into the draft budget might not be large enough to allow for the "true inflation costs we're seeing out there".

Cr Kate Makin said the council spent a "fair bit" on roads. "But we also have major risks and that means the economic uncertainty," she said. The medium and long-term impact on tourism was still unknown, she said.

Cr Geraldine Conheady said they had tried to remain focused on projects that would bring value to the Corangamite community - one of those being the completion of the next stage of the 12 Apostles trail.

"The escalating price of materials and delays has made it quite difficult to cost projects, especially when those projects need to be costed much earlier than any grant funding that we might receive for those same projects," she said.

Cr Jo Beard said that in times of uncertainty we all felt it in our household pressures, and it was no different for council. She said the council was being responsible with its expenditure before they "lash out on anything new".

"Although it's probably not as exciting or, I think in terms we've had the word sexy used before, I still think it's responsible that we're committed to all the services that we continue to be proud of and our communities expect from us," she said.

Cr Beard said they had reduced the farm rate again which would keep farmers "somewhat happy" but they had increased the unused industrial land rate. She said there were no new borrowings in the budget which gave the council a buffer if a "curve ball" was thrown at it.

The draft budget will now go out for public comment for two weeks.

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