Wingecarribee Shire Council must present a powerful case to the Minister for Local Government if it is to win approval to jack up rates, according to general manager David McGowan.

It's understood Council tonight is likely to support applying for variation in its general rate income of between five and 10 per cent a year for at least three years.

Increasing rates by an extra 10 per cent would boost Council's coffers by $1.17 million a year.

The average residential rate (based on the average block currently valued at $112,600) would rise from $510 to $561.

A typical farm rate (based on land valued at $460,400) would jump from $1042 a year to $1146.

This amount does not include waste, water and sewer charges, which could also rise because of CPI.

The average Wingecarribee household at present forks out about $1606 a year in rates and services.

Mr McGowan is calling for a rate rise - above the state government limit - to fund an urgent shirewide upgrade of assets.

Council has been adhering to, and under, pegging limits for the past 15 years (not counting the environmental levy).

But Mr McGowan's report tonight reveals that about $13 million is needed to bring the shire's public roads and facilities up to a "satisfactory standard".

"Obviously, with current revenue levels (about $11.72 million during 2001/02) it is not possible for Council to make significant progress in addressing this issue," the report states.

The report warns councillors that the shire would have to put up a convincing argument to levy ratepayers above the pegging.

"Informal advice from the Department of Local Government confirms that an application for a permanent variation to general rate income would require a strong case and would undergo rigorous scrutiny," Mr McGowan said.

"It is likely that an application for a specific timeframe with clearly defined goals and outcomes would be able to be more easily substantiated."

Mr McGowan said it is vital full community consultation takes place, even suggesting councillors hold a public meeting on the matter.

Council was successful two years ago in gaining the minister's approval for the environmental levy, which raises an extra $500,000 a year (which would equate to a general rate rise of about 4.3 per cent).