That is the reality for property owners in the Manning Valley if the State and federal governments do not act to reform how Federal Assistance Grants are calculated and paid to local government.

Reform is a buzz word that is currently tagged to local government as the NSW government is looking to make changes as part of its Fit for the Future program.

Greater Taree City Council has prepared its Fit for the Future submission and it highlights the necessity for increased rates if the NSW government's benchmarks are to be achieved.

On Wednesday night, council endorsed a submission indicating how it will improve between now and 2020 against all benchmarks. However, like many regional councils, this improvement is dependent on a significant rate increase.

In a review by NSW Treasury in 2013 one quarter of NSW councils were considered financially unsustainable, with half the councils becoming unsustainable over time.

According to council's general manager Ros Posselt, "the Fit for the Future process has provided no changes to any funding models for regional and rural councils and largely ignores the key issue of infrastructure maintenance and renewal. Ratepayers in Greater Taree have a huge infrastructure burden of 1600km of local road and 200 local bridges."

"The Fit for the Future process asks councils to cash fund depreciation, fully-fund road, bridge and stormwater maintenance and operate with more than 60 per cent of own source revenue. This approach requires ratepayers to fund their infrastructure," Mr Posselt explained.

"We strongly believe regional and rural communities deserve assistance from the federal and State governments and are asking that Federal Financial Assistance Grants be allocated on an infrastructure basis and not a per capita basis.

"Seventy per cent of Financial Assistance Grants are allocated on a per capita basis, that means financial assistance is provided to councils with bigger populations yet the bigger a council's population the more rates income they have they are already able to cover their own costs.

"Handing federal funds to wealthy metropolitan councils while regional and rural councils fail to be able to maintain their road and bridge infrastructure is very sad," Mr Posselt added.

Mayor Paul Hogan contends that "it is disappointing that the solution to regional and rural councils plight is left to ratepayers alone.

"It is in the interests of all Australians to maintain basic services in regional and rural areas and we hope the federal and State governments can see that.

"However, without that support, we have little choice other than to commence a discussion with the community about increasing rates."

The decision to consult with the community on a rate increase is reliant on the State government being explicit about their position in relation to Greater Taree.

"We need to know exactly what the State government is suggesting for Greater Taree before we can have a full and frank discussion with our community," Cr Hogan added.