The possibility of a rate rise above the the special rate variation was debated at the Dubbo Regional Council committee meetings on Thursday night.

Each year, IPART sets the rate peg limit, which determines the maximum amount by which councils across the state can increase their rates. For any council to increase rates above that limit, it has to be approved by IPART.

Advice from the AEC Group, which was hired by the council to undertake an independent financial sustainability review, was for council to increase its rates by 10 per cent for four years in a row.

It found without generating additional cash - for example by putting up the rates - the enhanced asset renewals can only be funded to 2024/2025 from existing cash held by council.

An additional $239.1 million is required to be invested in asset renewals such as roads, facilities and water and sewerage infrastructure over the next 10 years to maintain council's infrastructure.

However at Thursday night's meeting, the councillors voted to delay a potential rate rise above the special variation until the 2025/26 financial year.

The decision will go to the full council meeting in two weeks before it is confirmed.

But councillor Jess Gough has reassured the public, the decision will not be made without the community being informed first.

"There are a few steps that we have to go through before we even decide that there's going to be a rate increase," she said.

Of those who had contacted the councillors, Cr Gough said, "we do listen and we take it all on board".

Deputy mayor Richard Ivey said if council was "to continue to maintain a real level of services to the community" he was sure "we are going to have to have the rates increase above inflation".

However, despite saying the increase was needed, Cr Ivey said more time was needed to decide "exactly how much the rate increase should be".

Chief executive officer Murray Wood said costs were rising, even for the council.

"Dubbo Regional Council will always remain committed to finding service efficiencies, but council is not immune to rising costs, cost shifting from other levels of government, varying economic and market challenges," he said.

"As the cost of items such as fuel, electricity, insurance and materials for asset renewals continues to rise with no sign they will come back down, council needs to act proactively to ensure we secure financial sustainability for the future."

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