The recent confirmation on the allowable rate rise confirmed by the Independent Pricing and Regulatory Tribunal is up on the 1.5 per cent rise this year and 1.8 per cent in 2016-17.

The rate peg is calculated on the basis of a formula similar to the consumer price index with the rise being blamed on rising costs faced by councils.

“IPART has attributed the increase to increases in labor costs, electricity and street lighting charges, and higher constructions costs for roads, drains, footpaths, kerbing and bridges,” Local Government NSW president Keith Rhoades said.

“They have heard us about the pressures on local budgets.”

Albury hands down its draft budget in late April with planning already underway.