Waste management fee takes the total rate/charges rise to 2.7 per cent - or $56.31 for each household.

The council's draft budget shows providing library services will almost double in a few years, from $928,000 in 2020-21 to a projected $1,681,000 in the coming financial year.

The actual cost to ratepayers will be almost $1 million, a jump per head from $21.62 to $26.96.

In the introduction to the just released daft budget, mayor Vicki Jellie and chief executive officer Peter Schneider said there was a plan to increase the investment in library services.

"This reflects the move into the new shared library at the South West TAFE site, which will offer a floorspace four times that of the current library, more books, more connectivity, better accessibility, multimedia facilities and amenities including a children's play space and a cafe," they said.

"The number of annual visits to the library is projected to increase from under 200,000 at the existing library to more than 500,000 at the landmark new building which is designed to meet the needs of our growing population and help improve education attainment levels."

The council's proposed rate rise is 1.75 per cent, but an almost seven per cent jump in the waste management fee takes the total to 2.7 per cent - or $56.31 each household, to an average of $2140.83.

The draft budget states changes to the Victorian government landfill levy and impacts of the recycling crisis had seen significant pressure which led to a increased charge of 6.88 per cent.

The council is also proposing to introduce a $400 fee for short-term accommodation providers.

It's understood the fee will apply to about 100 properties in the city, but the cost of enforcing payment remains unknown at this stage.

The draft paper said those fees were in line with actions taken by other municipalities to address the inequity between recognised, registered visitor accommodation providers, such as motels and hotels, which pay a commercial rate, and those also providing visitor accommodation through newer platforms such as AirBnB.

The council is also setting aside more money for the Warrnambool saleyards.

The draft budget reveals the council will consider an additional $1.8 million to $3 million in the coming year for maintenance and upgrades, on top of the $2.56 million set aside in last year's budget.

The saleyards made a profit of $210,000 two years ago and that is expected to jump to $218,000 in the current year.

Changes to fees are tipped to lift the profit to $366,000 in the coming year.

While the budget is almost devoid of new initiatives, the council also expects the building boom to continue.

"The number of new homes being built in our city has jumped dramatically in recent years and this has reset the average number of new homes being built annually from about 230 to well over 350," Mrs Jellie and Mr Schneider said.

"The value of residential and non-residential building activity leapt from $116 million in 2019-2020 to $213 million in 2020-2021.

"We are expecting that the construction industry will continue to boom over 2022-2023."

They said that during the coming year the council would explore the possible addition of outdoor casual basketball and netball facilities at Lake Pertobe and other areas.

"Council will also explore an additional public art installation, resourced through the public art fund, at the harbour precinct to enhance the amenity of the area and the visitor offering in what is a very popular and important city precinct."

The draft budget shows the cost of providing city strategy and developments are also up about 50 per cent in two years, from a cost of $883,000 in 2020-21 to an expected $1,293,000.

But, holiday park profits are likely to jump back to pre-pandemic levels, from $119,000 two years ago to over $1 million ($1,035,000).

Flagstaff Hill and the the tourist information centre are expected to cost almost $1 million - $969,000, while the economic development budgeted loss is expected to be $818,000.

Festivals and events are also tipped to cost the city just over $1 million - $1,088,000.

Those events include BeachFest, Solstice Searching and the council assists with summer markets, Australia Day, ANZAC Day, the Melbourne to Warrnambool Cycling Classic, tennis championships and the Nippers Carnival.

In summary, leisure centres including The Arc and AquaZone are expected to cost the city $1,368,000 (down $75,000 on the previous year), art and culture through the art gallery and Lighthouse Theatre $1,086,000 (-$159,000), family services $1,047,000 (+$46,000), health services $731,000 (+$130,000), recreation $530,000 (-$64,000) and aged care $360,000 (-$328,000).

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