Narromine Shire Council is one of 23 councils across the state applying for a rate increase on top of the 2015-16 rate peg.
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The council have notified the Independent Pricing and Regulatory Tribunal (IPART) of their intention to apply for a special variation to increase their general income above the rate peg of 2.4 per cent.
Councils applying for the rate increase were asked to notify IPART by December 12 and those now have until February 16 to submit their applications.
IPART have reported when received the applications will be assessed against guidelines published by the Office of Local Government,
"The assessment criteria include demonstrating the need for and the purpose of additional revenue, evidence of community consultation and an assessment of the impact on affected ratepayers," the IPART statement read.
"The federal government has no money, the state government has no money and they're looking at us to maintain services. It's still a rate rise and it's a very hard thing to sell,"
- Mayor of Narromine Shire, Bill McAnally
Other councils who have lodged notifications are Yass, Oberon, Greater Hume, Kyogle, Ashfield, Ballina, Blue Mountains, Coffs Harbour, Deniliquin, Eurobodalla, Gloucester, Gwydir, Jerilderie, Marrickville, Mosman, Newcastle, City of Ryde, Shoalhaven, Wakool, Weddin, Willoughby and Wollondilly.
Members of the community were consulted earlier this month when councillors and council staff held public meetings.
According to the local media both Narromine and Trangie were against the rate increase.
Local mayor, Bill McAnally, said the Shire needed the rate increase to remain "fit for the future".
"We're a stand-alone council and we've proved it. But we need to make these decisions before someone else does," he said.
"The federal government has no money, the state government has no money and they're looking at us to maintain services. It's still a rate rise and it's a very hard thing to sell."
At the meetings Cr McAnally encouraged community members to make submissions regarding the variation to council so they could submit them with their own application.
For details about the assessment criteria for special variations and the amounts sought by each council can be found at www.ipart.nsw.gov.au.