On Tuesday night, Shellharbour City Council is set to push ahead with a 10 per cent rate rise when it meets to adopt the council's 2015-16 budget.

Under the draft 2015-16 budget, average residential rates in Shellharbour City will jump by $115 as the council enters its third year of the special rate variation (SRV).

In 2013, the Independent Pricing and Regulatory Tribunal approved Shellharbour Council's application to increase rates by 43 per cent over a four-year period. At the same meeting councillors will consider a submission to IPART regarding the NSW government's Fit for the Future local government reforms.

The submission includes ratios calculated on the level of debt, operating performance, revenue and expenditure as well as the building and infrastructure renewal ratio.

The council said the SRV "has assisted the operating result and the building and infrastructure renewal targets", while the improved efficiencies of council had helped to achieve a sustainable operating performance.

"The ability of council to continue to meet the infrastructure and service needs of the community is at the heart of the analysis that shows we are on the right track to a sustainable future," Cr Saliba said.

"Some of the most difficult decisions faced by council have involved increasing revenue through rates and electing to build new infrastructure, which we can see has not only been necessary, but imperative to sustain our community into the long term," Cr Saliba said.

Shellharbour City Council is part of the recently established Joint Organisation pilot with Wollongong, Kiama and Shoalhaven councils as part of implementing the Fit for the Future reforms.

The pilot project will set strategic regional priorities, share resources and improve efficiencies.

IPART will review the project and make recommendations to the Minister for Local Government based on its assessment.

aarnold@fairfaxmedia.com.au