At the Strategy and Assets Committee meeting on Tuesday April 13, a majority of councillors voted to endorse council staff's recommendation to place the 2021/22 draft operational plan and budget on public exhibition.

However, Crs Greg Watson, Mitchell Pakes and Mark Kitchener submitted a rescission motion, which halted action on the resolution until deliberations continue at the next ordinary meeting on April 27.

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The draft included a 2.6 per cent rate rise which would have two components; the 2 per cent rate peg which was approved by NSW Minister for Local Government Shelley Hancock and a 0.6 per cent additional 'Special Rate Variation' (SRV) amount.

Each year, IPART sets the rate peg, which is the maximum amount by which councils can increase their general income in that year. Councils may apply for an SRV which allows them to increase their general income by more than the rate peg.

Shoalhaven council received approval from IPART in 2018/19 to be able to apply an SRV over three separate financial years. The council's SRV amount, when combined with the rate peg, cannot exceed 5 per cent for any given financial year.

In 2018/19 the SRV amount was 2.7 per cent and in 2019/20220 it was 2.3 per cent.

However, last year council only increased rates by the regulated rate peg of 2.6 per cent and chose to not apply a SRV increase. This means council has a 2.4 per cent SRV increase to catch up on.

This year's proposed 2.6 per cent rate increase would generate $2.1 million in council revenue with the 0.6 per cent SRV additional amount equating to about $480,000, an average of $34 per year, per rateable property.

The 2 per cent increase will be fully utilised to absorb the increase in operational costs, including materials and contracts and salaries and wages as per the local government award, with the additional 0.6 per cent amount going to a roads and transport renewals program.

Greens mayor Amanda Findley criticised Cr Watson's stance on the SRV increase.

"What you effectively want to do is strip out [$480,000] from the general fund," she said.

"I mean do you take yourselves seriously when it comes to how you manage the finances?"

Cr John Wells who chaired the meeting, asked Cr Watson and Cr Findley to apologise to each other for their "undesirable" tones.

Cr Watson later attacked the Mayor for presiding over what he claimed was a 30 per cent rise in rates over this council term.

"And she now says that we should drive on and increase the rates even further than the minister's allowance. I remind her that her proposal over the past five years have been strangling our ratepayers," he said.

Once the draft operational plan and budget is endorsed, it will be placed on public exhibition for 28 days.