The draft budget has factored in just a four per cent rise in fuel costs over the 2008-2009 financial year, but the rapid rate of petrol prices rises looks certain to dwarf that allocation.

The budget also allowed for an inflation rate of three per cent, something that was “entirely inadequate” according to North Nowra resident Dennis Argall.

“Nobody would regard the allowances for increasing prices as being realistic, and I expect the new council will have to pull the budget apart and see what can reasonably be done,” Mr Argall said.

However council’s finance and corporate services director Peter Dun said the budget did not work in that way, as council did not estimate how many kilometres vehicles would travel, or how many cubic metres of bitumen were going to be laid.

Instead, money was allocated to achieve certain goals or complete certain projects, and specific costs were constantly monitored.