LORD mayor Nuatali Nelmes has accused her fellow councillors of "scaring the general public" with claims that a proposed rate rise would heavily impact on residents financially.
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The 46.9 per cent rate increase has the support of Labor and Greens councillors, but not the Liberal-independent alliance.
The council voted in favour of a new long-term financial plan last Tuesday night, which raises rates for both residents and businesses significantly.
Cr Nelmes said the rate rise was closer to 25 per cent, if you took into account CPI of 3 per cent for five years.
She said the council would be left with no lifeguards, no art gallery, footpaths or libraries if a rate rise did not go ahead.
Liberal councillor Brad Luke said the rate increase was unwarranted and instead called on the council to cut out more waste.
Greens councillor Michael Osborne said the council's financial problems were partly due to the state government cost shifting, highlighting street-lighting and waste revenue.
He said local governments collected money on behalf of the state government and were handed back "some crumbs".
A final decision on the rate rise is expected in May and will be handed down by IPART, the Independent Pricing and Regulatory Tribunal of NSW.