At an ordinary meeting on Tuesday, April 28, councillors debated on whether or not to include a 0.6 per cent special rate variation (SRV) in the draft budget.

But the Shoalhaven Independents bloc successfully voted to remove the 0.6 per cent SRV amount from this financial year's draft operational plan and budget.

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The successfully carried rescission motion was submitted by Crs Greg Watson, Mitchell Pakes and Mark Kitchener and continued the debate from the Strategy and Assets Committee meeting on Tuesday April 13.

The proposed 2.6 per cent rate increase would have generated $2.1 million in council revenue equating to about $480,000, an average of $34 per year, per rateable property.

The 0.6 per cent amount would have been close to an average of $8 extra 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.

While the rejected 0.6 per cent amount would have gone to a roads and transport renewals program.

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.

In relation to the proposed 2.6 per cent rate increase, Cr Mitchell Pakes said he could not comment on every individual's situation in the Shoalhaven.

"But I am aware of the people that do contact me and say we can't afford an extra cup of coffee a day or an extra toasted sandwich a week because we are self funded retirees," he said.

Cr Mark Kitchener condemned the proposed budget in its current state as he believed the lion's share would be spent in the northern part of the Shoalhaven, with $65 million allocated to ward 1, $40 million to ward 2 and $23 million to ward 3.

At the last Strategy and Assets Committee meeting, Greens mayor Amanda Findley criticised the Shoalhaven Independents 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?"

The amended draft operational plan and budget will go on public exhibition for 28 days.

Those in support of removing the 0.6 per cent SRV amount were Crs Alldrick, White, Wells, Guile, Pakes, Watson, Proudfoot and Kitchener.

Against: Crs Findley, Gash, Gartner, Digiglio and Levett.