Cr McLean's motion stated 'That Council - 1) Commence work on a rate rise for 2015/16 no higher than Consumer Price Index and 2) Set the Farm Rate at no more than 55 percent of the General Rate."

Cr Fay Hull expressed concerns at the wording of Cr McLean's motion, particularly the second point which would see the farm rate locked in at 55 percent without considering the whole rating strategy and instead suggested 'Council consider the feasibility of a nil rate rise and explore the equity issues related to reducing the farm differential to 55 percent or less of the general rate.'

After some initial confusion the amendment failed to gather support from the rest of the chamber.

Cr McLean's motion was eventually passed, with councillors Gwenda Allgood, Gary Hull and Colin McKenzie voting in favour of it.

Following the decision Ararat Rural City mayor, Cr Paul Hooper joined Cr Fay Hull in expressing apprehension at the decision that had been made.

Cr Hooper said reducing the farm rate would effectively pass the burden onto other sectors of the municipality.

"One of the concerns that I have as a result of (Tuesday's meeting) is whether in fact we can take the decision that has been made without conducting a review of the rating strategy and I have asked the CEO to investigate whether it is lawful and sensible for us to do that," he said.

"When we amalgamated the farming sector contributed something like 50 percent of the total amount of money that was raised in rates. Last year they contributed something like 40 percent of the total bucket, so this illusion that they are paying more disproportionately than what they were at amalgamation is an absolute blatant distorted lie.

"The other thing to recognise from this motion is that the bucket that is raised from rates won't alter, so by reducing the differential for one sector it means that the other sectors have to pay more because the total dollars raised won't change as a result of this."

Ararat Rural City CEO,Andrew Evans agreed that this lock-in decision would 'change the current balance in favour of the farming sector - at the expense of everyone else'.

"That is to say, all of your industry people, so AME, Gason, Ruthven Steel and others, plus all of your retail sector, so the shops in Barkly Street who are doing it just as tough, and the 900 ratepayers in Ararat who are on fixed income or retired - they will all have to pay more," he said.

"What they have basically done in changing the rate differential from 60 to 55 is said the farming zoned land now only have to pay this much and everyone else has to pay this much more to make up for that." Cr McLean argues that no sector of the municipality will have to carry the burden of this decision, with her aim to see all people in Ararat benefit from low rates.

"That is our goal, all four members on council who voted for this motion do not want to see the farmers gain an advantage at the expense of everybody else," she said.

"We have started with the farming sector, but our commitment is to keep going.

"By the same token, even though I think a differential of 55 percent is appropriate for the farmers, there is no plan to penalise the people in the city.

"I would like the evidence from the mayor and others as to what they think the financial implication is going to be for the people in Ararat."

Cr McLean said some hard decisions would need to be made in order to achieve the goal of a rate rise for 2015/16 no higher than Consumer Price Index.

"People always say you have to cut services, my comment is you need to cut staff," she said.

"I have a lot of views and a lot of thoughts, but I feel that is a discussion we need to have in council so that the councillors agree this is a strategy and a way to go.

"The councillors who passed the motion want to see cuts to rates across the board."

Cr McLean dismissed claims by Cr Hooper that she wasn't aware of the consequences of the motion.

"I think the ramifications are being considered all the time," she said.

After being elected to council in February, Cr McLean said it has been her intention since mid-year to put the next budget on the agenda earlier than it had been done in the past.

"We have to start work early," she said.

"The mayor and CEO after my comments in June made a commitment to me that we would start early and have a lot more consolation about the process."

The next Ararat Rural City Council ordinary meeting will be on February 17.