“This morning the Mayor stated that rates would go up next year by the consumer price index, currently running at 1.7 per cent,” Cr Guile said.

“Council’s own report to be received next Tuesday clearly sets out rates increasing by the rate-pegging limit set by the Independent Pricing and Regulatory Tribunal for the 2015/16 years, which is 2.4 per cent.”

He said that in the same interview Cr Gash claimed that the capital works budget for the next financial year will be $160 million.

“The same report clearly states the expected capital budget is in fact $65.1 million, around $95 million short of the Mayor’s target.”

Cr Guile said the Mayor’s greatest omission was in forgetting to mention that the report, to be adopted by council next Tuesday, says the Long Term Financial plan also [factors] in a special rate increase of 5 per cent for three consecutive years.

“Add these extraordinary increases to the rate-peg, usually between 2.5 and 3.5 per cent per year and council is proposing to hit rate payers with a rate increase of over 20 per cent in the next few years on top of the recent 8 per cent increase still factored in to the rates equation, year on year.”

He said that as well, other council fees and charges were slated to increase by 5 per cent.

“This will see the average rate residential ratepayer needing to find around $200 more each year.

“At a time when pension increases are to reduce to CPI and those on fixed incomes are dealing with record low interest rates, how can council justify such hefty increases?”

Cr Gash, in turn, accused Cr Guile of being misleading, saying he engaged in being critical for the sake of being critical.

“I may have accidentally mentioned the CPI instead of IPART on my radio interview this morning but I gave the correct amount of 2.4 per cent, and not 1.7 per cent as Cr Guile accuses,” she said.

“A report was provided to councillors [on Thursday] night by staff and that report has made a number of recommendations to meet the state government’s mandate for being ‘Fit for the Future’, including a rate increase in the next term of council, from 2017 to 2019.”

Cr Gash said councils across NSW had to meet benchmarks set by the NSW government in future years, and that this was non-negotiable.

“I quoted staff in saying $160 million for capital spending over 2015/16, which I have checked; the number is $240 million over the next two years.

“These documents go to next week’s council meeting in Ulladulla and go on public exhibition next week where the community can have their say.”

She said council was open to discussion and that nothing had been decided.

“Simply being critical does not address the core issue of what the state government is demanding of us. We don’t have the luxury of doing nothing.

“I ask Cr Guile if he has any alternative strategies to meet the state government’s mandated targets for ‘Fit for the Future’ to show some leadership and put them on the table,” Cr Gash said.

“Council is planning to hold three information sessions for the whole community, on top of the Council meeting on Thursday, April 23, with community consultation bodies, to explain the necessity of the rate increases.”

Cr Gash said any changes would not occur until the life of the next council, so ratepayers would be able to vote on any increases.