The authority which allows or denies increases says that decision will be known in the coming weeks.

The city council has applied to the Essential Services Commission to lift rates for three years above the state cap to 4.5 per cent.

A spokeswoman from the Essential Services Commission confirmed the decision would be made public in the coming weeks.

"It will be known by the end of May or the first week in June," she said.

There has been strong community opposition to the proposed rate rise, which would equate to an additional annual cost of about $40, on average, per household each year.

The council says additional funds in the first two financial years will be used to renew roads, footpaths and other assets in urgent need of attention.

Additional funds from the third financial year of the exemption will be directed to further asset renewal and to offset the increased costs for the new library/learning hub.

A Warrnambool City Council spokesman said the ESC has been in contact with council "to check on a couple details including some methodology".

Chief executive officer Peter Schneider said earlier in the year while the prospect of higher taxes would never be popular, the ESC would thoroughly examine the council's financial position before making its decision.

"The ESC applies an extremely stringent review criteria to ensure that all reasonable steps have been taken or are being taken to find efficiencies before an exemption to the rate cap would be granted," he said.

"Due to factors such as cost shifting by other levels of government, a reduction or the freezing of external grants as well as a drop in council revenue, we are now in a position where our assets are deteriorating faster than we can fund their maintenance and repair.

"Council will remain focussed on finding further efficiencies and reviewing the appropriateness of the level of services provided to the community.

"One very timely example of this is our move to share software and business processes with Moyne and Corangamite Shire councils, which will save time and money in the areas of finance, payroll and the issuing of permits."

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