A report to be tabled at tonight's Wollongong City Council meeting shows that after the first month of the 2009-10 financial year, the council recorded a $1.5 million deficit - $1.2 million less than what was forecast. The positive result was attributed to the timing of council projects and money from the Federal Assistance Grant in the previous financial year.

But in the key area of cash flow, $6 million less was received from rates payments in July, compared with the same month last year.

"Traditionally, July and August represent low cash inflow periods as the first rate instalment is not due until August 31. The current period has also been exacerbated by lower than normal receipts," the report says.

Residents also handed over $265,000 less for waste charges than expected, coinciding with significant increases in fees at the Helensburgh and Whytes Gully tips.

From July 1, tip fees at Whytes Gully jumped 67 per cent for a sedan to $15, household waste went up 15.7 per cent to $150 per tonne and the cost to dump green waste increased by 5 per cent.

Yesterday, the council issued a reminder to ratepayers that they would be entered into the draw to win a new Ford Fiesta or a $1500 travel voucher if they pay their yearly rates by August 31, rather than by quarterly instalments.

The incentive program is held each year and the winner will be drawn on September 22.

The council's corporate and community services director Illana Halliday said the extra income generated through interest would help pay for a range of services, facilities and infrastructure.

"Rates make up 55 percent of council's income and help us look after beaches, parks and sports fields, collect waste, maintain our roads, manage planning applications and run our libraries, community centres and many other programs," Ms Halliday said.

"This year council is putting a priority on updating roads, buildings, footpaths, parks and basic community infrastructure."