Tamworth Regional Council is seeking a mandate for a permanent 6.7 per cent rate rise to fund its capital works program.

The proposal comes just two years after it secured approval from the independent regulator for a perpetual 11 per cent increase.

Tamworth mayor Col Murray said in recent years the council had made the “tough decision” to focus almost exclusively on maintaining its assets.

However, he said the time was right for the council to compile a pool of money to spend on large community-building capital work projects.

“It’s been a pretty tough journey for the council because there’s so many calls for things from the community,” he said. 

“The reality is that to be able to provide the new and additional infrastructure and facilities the community wants, council needs to create a dedicated and specific revenue stream. In broad terms, it averages out to $2 a week per rateable property and that will give council enough to pay off a $15 million loan every 10 years.”

In August, the council unveiled an infrastructure strategy that outlined its short, medium and long-term priorities for the next two decades and beyond.

The idea is to accumulate enough capital to allow it to go to the state or federal government and ask for projects to be matched dollar-for-dollar.

But first the council must demonstrate to the Independent Pricing and Regulatory Tribunal (IPART) that it has the community’s support for the rate hike. 

Cr Murray said a survey of 600 residents earlier in the year indicated that 53 per cent of respondents were open to the idea of paying higher rates.

“We think that if we can sell the story properly then the community may be prepared to do that,” he said.

Counting against the council is the continued pressure many residents are feeling from the rising cost of living expenses, such as soaring electricity and fuel prices.

In its favour is the fact Tamworth residents pay lower rates than many of the state’s similar sized councils.

Figures from the Office of Local Government show that in 2012-13 the average Tamworth ratepayer was slugged $849 compared to the average of $895 across 11 councils.

The council will seek to gauge community sentiment before notifying IPART before December 12 of whether it will request the rate rise.