TAMWORTH Regional Council has backed rate rises and a 20 per cent increase to CBD parking fees as part of its budget for the next 12 months.
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Some councillors spoke of the financial hardship currently endured, particularly in rural communities, and the sense charges seemed to always increase.
Mark Rodda said he had received messages which suggested more council rate rises would "break a lot of people" and it was akin to "milking dry a cow in a drought".
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The council backed the maximum possible rate rise which was a 2.7 per cent increase authorised by the state's revenue watchdog.
This will raise an additional $1.2 million for the council in the next 12 months.
But the biggest sticking point for the annual operational plan's budget, which included more than $80 million worth of new projects and upgrades, was a 20 per cent increase to CBD parking charges.
Tamworth Business Chamber vice-president Stephanie Cameron spoke against the proposed hike in parking charges in light of the local economy's current "fragile" state.
She said the move would negatively impact the business community.
"We, council and the business chamber, should be working together to boost our local economy rather than suppress it," Mrs Cameron said.
She also took umbrage with the fact the revenue raised off the CBD increase would help subsidise parking projects outside of the city centre.
The councillors were moved by the chamber's presentation with some suggesting the increase should be eked out over a period of time.
Russell Webb said it was probably the wrong time to hike up parking charges and moved an amendment to block the budget measure.
He suggested the council keeps its current level of charges and defer a rise for at least a year, or rolling out 5 per cent increases over the next four years.
General manager Paul Bennett the reason for the greater increase in one hit was a "logical increment" and meagre rises would mean people would be looking for 5 and 10 cent pieces to pay for parking fees.
To his surprise, councillors voted down of Cr Webb's amendment and backed the 20 per cent mark-up.
"I thought we might have got that up," he said quietly to Charles Impey seated next to him.
The councillors also unanimously backed a 2.5 per cent increase to their annual salaries.