The budget was passed at Monday night's ordinary meeting of council, but not without some discussion around the additional $117.60 hit to the ratepayer's back pocket.

That includes an additional $30.85 in annual water rates and access charges, based on an average water usage of 380 kilolitres and a 20mm connector.

The water usage charge will rise from $1.85 per kilolitre in 2014-15 to $1.91 per kilolitre in 2015-16, which is equal to a 3.3 per cent increase, while the CPI 10-year average stands at 2.8 per cent.

Deputy mayor Ben Shields and Councillor Rod Towney both voted against the rate rise on the basis that it was above CPI.

"It's becoming quite obvious that the community isn't too happy about the continual increase in our water rates," Cr Shields told council during its ordinary meeting on Monday, June 29.

"It is now alarming me that Dubbo is getting more expensive than Bathurst and Orange when it comes to our rates and charges. Our greatest competitive advantage we can have as a regional city against other regional cities and indeed against Sydney is our cheap living. The idea that our rates continually rise above CPI doesn't stack up with me."

"Cr Shields stole the words out of my mouth," Cr Towney added. "I agree with him so I don't want to go over what he stated already. I have a problem going over CPI as well. To impose more money on people to pay extra charges, I don't think it's fair and I will be voting against the motion."

The rise continues a long-standing trend, with the water cost per kilolitre rising 267 per cent since 2003, according to a report to council's finance and policy committee by director of technical services Stephen McLeod.

But Cr Smith defended the increase, claiming it was only marginally above CPI and was necessary for the maintenance of the city's infrastructure.

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"We have an expanding city and the infrastructure requirements continue to grow," Cr Smith said to Monday's council meeting.

"Everyone wants to be able to turn on the tap of a morning, have their shower, wash their teeth.

"People may argue with us until they're black and blue in the face about the price, but the day they'll publish in the notices is when they turn the tap on and water doesn't come out."

What will your water rates pay for?

- $4 million for preconstruction/ construction works at the South Dubbo Weir.

- $6 million for the Eumungerie Water Supply scheme

- $2.999 million over three years for pipeline works

- $2 million for the Lime Dosing Unit at the John Gilbert Water Treatment Plant

- $4.1 million for the Newtown Reservoir upgrade