Federation Council is pushing on with a contentious rates plan, agreeing to take it to the NSW regulator for approval

The council on Tuesday endorsed an application for a special rate variation which flags increases of 19 per cent, 17 per cent, 14 per cent and 10 per cent from 2023-24 to 2026-27.

The blueprint will now be lodged with the NSW Independent Pricing and Regulatory Tribunal, which sets rate caps, for approval.

It is not expected a response will be received until May and council staff will frame three potential budgets, based on approval, disapproval and not applying the full rate sought, for councillors to consider before the next budget.

The Federation Ratepayers group has lead opposition to the rates plan and its chairman David Bott and other members were in the gallery for Tuesday's council meeting at Urana.

He said the council had failed to listen to complaints about the proposal.

"The council only hear what they want to hear, they're tone deaf to the community," Mr Bott said.

"The community feels taken for granted and that's a deserved feeling."

Mr Bott said his group would make a submission to IPART arguing against the variation and encouraged others to do likewise.

He said Federation Ratepayers would argue the council had failed to meet community engagement requirements.

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Mr Bott said his group still wanted an independent review of council finances and was disappointed mayor Pat Bourke had not followed up on initial interest in that move.

Cr Bourke told Tuesday's meeting the variation was "a massive decision and a very hard, tough call for a council to investigate".

"It's our job as councillors to make sure that it isn't business as usual, that we do gain efficiencies and we get the best outcome for our communities," he said.

"(We need to ensure) all funds are delivered fairly, equitably and with as much efficiency as we can possibly find, so at the end of the day we as councillors will be proud of the work we've done for our communities and in turn our communities in return will be proud for serving them so well."

The vote for the rates plan was 7-2 with Cr Bourke joining Shaun Whitechurch, David Fahey, Andrew Kennedy, David Longley, Gail Law, Rowena Black in supporting it and Aaron Nicholls and Sally Hughes opposed.

Help for pensioners facing higher rates will be considered by the council as part of the push for a cumulative increase of 60 per cent over four years.

A report will be compiled to examine "additional pensioner concession options" to aid those most affected by the push for a special rate variation (SRV).

The move follows concern from the Mulwala Progress Association about the increases.

The chairman of the council's rates advisory committee Derek Schoen told councillors at Tuesday's meeting "it should be kept in mind any additional assistance funded by council will be funded by remaining ratepayers not government".

Cr Hughes noted pensioners would not be the only citizens vulnerable with recent census data showing an increase in low income earners in the shire.

"I have concerns we have not heard the voices of those people," she said.

Cr Hughes said a consultation session she attended had a majority of senior residents and farmers.

Mr Schoen said his committee members had discussed at length concerns about consultation being ineffective.

"Council staff have stated that there has been extensive community engagement on the SRV, if so, as councillors you will have to revisit how information is disseminated to the community as most people that committee members talk to are astonished to hear about a 60 per cent rate increase which becomes 75 per cent cumulative," Mr Schoen said.

Cr Nicholls moved an amendment that would have involved more reporting on community consultation but it was voted down 6-3 after Cr Whitechurch said transparency was improving.

Cr Nicholls said ratepayers needed to "see the how not just the why" on the rates changes.

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