Plans in motion would see Shoalhaven City Council retain its 13.2 per cent special rate variation as a permanent increase and an additional rate rise of five per cent applied from 2018/19 until 2020/21.

The application was blocked by a rescission motion on Tuesday night.

But it’s likely the plans will go through in three weeks – councillors against the rate rise were outnumbered three to nine on Tuesday.

Cr Greg Watson warned the next rate rise could be last straw for people in dire financial straits.

“If you continue with these rate rises, you’ll increase the number of homeless people in the Shoalhaven,” he said.

“You’ll push people out of homes, it will be the last straw that breaks the camel’s back.”

Cr Bob Proudfoot said inequity was the unintended consequence of the rate rise in July.

While rates increased at an average of 13.2 per cent, in areas where property values increased by more than 22 per cent, the average increase in the Shoalhaven, the rate rise was higher.

“Some of the poorest areas were hardest hit,” Cr Proudfoot said.

“In Sanctuary Point, property values went up 50 per cent, and in turn rates went up significantly.

“We hit a community with a great number of pensioners and low income earners.”

Mayor Amanda Findley believes the proposal will ensure the financial sustainability of Shoalhaven City Council into the future and saw “two clear options”.

“Either we cut our services to reduce the amount of money we are spending or we increase the revenue that we receive each year,” she said.

“We can ask our community whether they would like their pools to be closed or their library services to be reduced or road maintenance to be reduced, but from what we have already heard, I am sure that the answer to this will be a resounding no.

“Our community want (us) to continue to provide them with services and meet their needs.

“Our only option is therefore to seek additional revenue to ensure that we can meet ongoing community expectations.”