Dubbo City Council this week reported the sum collected from usage last financial year was higher than anticipated.

Revenue from consumption charges increased by $1,557,766 compared with the original budgeted figure, general manager Mark Riley said in a report to the council's finance and policy committee.

The advice about the result comes after the water price rose by 6 per cent or 11 cents to $1.85 per kilolitre from July 1, the second increase in consecutive years.

In 2013-2014, the year that produced the larger than expected revenue, the utility was charged at $1.74 per kilolitre.

Mr Riley attributed the increased revenue to the weather.

"The summer of 2013-2014 saw a significant reduction in rainfall and higher temperatures when compared to previous years, resulting in significantly higher usage by consumers," he said.

The council will save the flow of funds for a rainy day and Mr Riley foreshadowed a future where the water fund could take a hit.

"The additional revenue has been placed in restricted asset to assist in future shortfalls in consumption usage," he said.

Revenue from water usage can only be spent on water projects.

The council has millions of dollars of infrastructure expenditure planned for the future.

In May the council put its proposed operational plan for 2014-2015 on public exhibition.

It had a projected budget expenditure of $168 million, including direct funding of $10.39 million for water supply services.

Dubbo mayor Mathew Dickerson said then the proposed 6 per cent increase in water usage charges for both residential and non-residential properties was in line with the 20-year financial plan for the water fund, which the council adopted in 2013.

Some residents wrote submissions protesting the increase and councillors Greg Mohr, Ben Shields and John Walkom voted against the rise, but it was adopted.

In the wake of the decision, Cr Dickerson said that while Dubbo's water usage charges sat about the median level for regional NSW, the council had noted it was appropriate to review the modelling of how water usage fees were calculated in preparation for the 2015-2016 draft operational plan and budget.

Mr Riley said in his reports to this week's finance and policy committee meeting that while the audited results for 2013-2014 had not yet been finalised, the statements were expected to be close to the final results.