Tamworth council mayor Russell Webb says IPART rate pegging needs rethink

That's according to Tamworth Regional Council mayor Russell Webb who has hit back at "backwards" rate pegging restrictions.

Cr Webb told the Leader the Independent Pricing and Regulatory Tribunals 'special rate variation' system - one that allows councils to apply to recoup more rates from residents - needs to be reassessed.

"They're not really special rate variations, they're survival rate variations," he said.

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"We're seeing councils getting 50 to 60 per cent increases over the next couple of years, just so they can maintain they're infrastructure and maintain their service levels."

Liverpool Plains Shire Council and Walcha Council have both applied for special rate variations.

The pricing watchdog set a 3.7 per cent rate peg, the maximum amount councils can increase rates, across NSW local councils for the next financial year.

Cr Webb said the system, which has been in place since the 1970s, had left local councils short on cash.

"We're forced into a position where there's not enough money there to do the work that needs to be done," he said.

After attending the Country Mayors' Association meeting last week, Cr Webb said there was the need for financial stability was the lasting message from the forum.

"We need to tell the government we need some help," he said.

The call out for help comes as Tamworth council stares down the barrel of a $3.9 million cash decline across the next four years.

Despite the deficit, the mayor said council chose not to apply for a special rate variation to help claw back the cash.

"We're trying to do our best," he said.

But rate rises are "certainly on the board" in the future, Cr Webb said.

He said conversations will be held with community members in the coming months about the best way forward to beef up the bank account.

"We will talk to them about what they feel is acceptable, how they feel about our service delivery, and what capital items they want us to consider building over the next five to 10 years," Cr Webb said.

At a recent meeting, council also voted to write to a long list of government representatives regarding cuts to the emergency services levy subsidy which could see Tamworth council fork out an extra $734,410.

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