Warrnambool city councillors will vote on applying for a controversial rate rise above the state government-regulated cap at a special meeting on Monday evening.
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The decision comes after it was revealed less than six per cent of people supported a rate increase, according to a community survey.
The council has conducted community consultation over the past two months, to help inform councillors' view on if they will vote to support an application to the Essential Services Commission to raise rates above the regulated 2.25 per cent.
The council proposed to notify the commission of its intention to request higher rate increases from 2019 to 2023 in December last year.
It said a rate increase would help maintain financial sustainability, service levels and to assist in renewing assets.
A council report said it had "continually sought to operate efficiently within the last years (sic) achieving a controlled 1.2 per cent rise in the operating costs and a rise of 3 per cent for the preceding 2 years".
"There is no guarantee the application would be successful and an inability to raise further rate income would seriously jeopardise the future level and breadth of services provided to the community, the capital program planned and the rate of renewal of our communities' assets," the report said.
"Council is not relying on the success of a rate cap variation alone. It continues to undertake long term measures where possible to reduce costs."
A community survey asked people to consider the full range of council services; the cost of providing those services; the importance of the services; whether some services should be reduced; and, alternative funding options for services in the event of a funding shortfall.
Results from the survey were compiled at the start of March.
"Overall the survey results and commentary indicate a reluctance on the part of most respondents to cover funding shortfalls through an increase in rates," the results report said.
"There was, however, some resistance to having council reduce or cut services. The option of fee increases received more support than a rate increase with some of the commentary suggesting council should move towards more of a user pays model for some services."
The report showed younger people aged 18 to 49 years identified cutting services and seeking alternative providers as the most preferred means of addressing the funding shortfall.
Those aged 50 years and older were more reluctant to see services cut and favoured increasing fees.
The meeting is on at the Civic Centre from 5.45pm.
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