Councillors have approved a recommendation from council directors to seek a special rate variation amounting to 7 per cent above the rate pegging limit (RPL) for three consecutive years from July 2014.

This would be followed by a 1 per cent rise above the RPL in the 2017-18 financial year.

If the Independent Pricing and Regulatory Tribunal (IPART) grants approval, the average household rates bill would increase from $834 this year, to $1154 by July 2017.

The council was granted a permanent rate rise of 11 per cent, effective from July 2012, with the right to apply for further special variations.

The Director of Corporate Management Daryl Hagger prepared an extensive report for the October council meeting, with input from General Manager David Rawlings.

It has highlighted the need to maintain ageing infrastructure, the increased costs of regulations and service provision, and the failure of the current level of rates to keep pace as the key factors behind the proposed hike.

The report summary states ongoing reviews into council operations indicate there are insufficient resources available to provide current services on a long-term sustainable basis.

“A decision has be made now on how to deal with the situation; balancing the financial impact on residents against the services and standards of services the community desires,” the summary concludes.

Cr Sue McGinn outlined her support for the recommendation.

“We need to invest in our community and its assets,” she said.

And mayor Liz Campbell spoke in favour of the rates increase.

“We’re future-proofing our shire,” she said.

Cr Bruce Morris put forward an amendment to spread the overall increase evenly across the four-year period, which was supported by Cr Betty Green but opposed by the remaining seven councillors.

Crs Campbell, Green and McGinn were joined by Crs Lou Kesby, Anthony Patterson, Dean Saul, Anna Shields and Ashley Williams in voting for the recommendation.

Cr Morris’s was the only vote against.

Mr Rawlings said the council was able to look at individual situations, where there were issues relating to hardship.

GM and mayor explain rates rise rationale

DAVID Rawlings says he wants to ensure ratepayers get the best value for money for the services they expect.

Kempsey Shire Council's general manager acknowledged the difficulty of convincing the community of the need for further significant rates rise.

"It will definitely be a hard sell," he said.

"I hope (with the previous increase) we've shown that we're moving towards better management.

"Results are what will matter.

"People want services and assets, and if you want those, you do have to pay.

"No one likes extra costs, but the community will see Council is working towards getting our lifestyle where we want it to be."

Community support for a rates rise forms part of the criteria for IPART submissions.

The council failed to secure the full rise it had sought from IPART in its previous submission, but had set up a series of contingencies for possible outcomes.

Increased revenue from the rise had been ploughed into the council's roads network, as it had been identified as the immediate priority.

Any further rises would be more focused on other infrastructure and services, Mr Rawlings said.

Rates increases would allow the council to give more priority to community buildings, swimming pools, flood mitigation and all other council assets.

The council will come up with new contingencies for various outcomes of this IPART submission.

Mayor Cr Liz Campbell said it was essential to replace ageing infrastructure to maintain the great lifestyle the Macleay offered.

"We cannot expect others to come to the area, invest, set up factories and industry to provide jobs," she said.

"It will not be possible to have a healthy, wealthy, safe and sociable environment if we are not willing ourselves to invest in our own community.”