Councillors debated for more than an hour over whether to enter the consultation phrase, with Cr Kathryn Bell and Cr Peter Epov both speaking against the proposal.

Speaking on the issue, mayor Paul Hogan said it was "time for a serious conversation" with the community about the potential rate rises that would be used to address "the single most contentious issue facing them (the community), the condition of our road network."

"What we have before us is a report advising that the decline in our road network can be arrested with a six per cent rate rise for six years," he said.

"Whether that is an investment our community wishes to make is something our community should tell us."

The potential SRV was first raised in June when council lodged a Fit for the Future submission to IPART that proposed the rate increase.

Greater Taree City Council was one of the council's deemed to be "not fit" for the future based on a range of economic stipulations set by IPART.

The October council report stated that the process "fails to consider the infrastructure that each council is responsible for compared to the rate base," an issue in the Greater Taree area given the high amount of infrastructure compared to the population density.

Speaking against the motion, Cr Epov re-iterated points made in the Manning River Times on Wednesday, October 21, that the proposal is being rushed through "at five minutes to midnight."

He raised concerns that it would offer little time for a thorough community consultation as well as the stresses a rate rise would place on businesses and other community members.

Cr Bell also cited the pressure a rate rise would put on members of the community who were low-income earners and pensioners.

Deputy mayor, David West spoke in support of the motion, saying that he "absolutely supported finding a solution to the road issue."

All councillors voted in favour of the consultation phase, with the exception of Cr Bell and Cr Epov. Cr Alan Tickle was absent.

The community consultation process will now proceed based on a SRV proposal of a six per cent increase in general rates above the normal cost of living increase, compounded each year for the next six years.

Use of the increased rates would be restricted to infrastructure and renewal, the report states.

The feedback process will also canvass community opinion on raising the SRV a further one per cent, to seven per cent in total.

The report also endorsed the use of $40,000 from council's budget for the consultation process.

Feedback received will be used in a report to council in January 2016 to inform a decision about a SRV.

According to council the SRV of six per cent over a period of six years would provide a $10m per annum addition to the infrastructure budget by year six.

With $120m invested on local roads over the last five years, council general manager Ron Posselt said council couldn't rely on State and federal grants alone to complete continuing infrastructure work.

"The model for distributing the federal and State government funding component is broken," said Mr Posselt.

"Federal Assistance Grants are currently allocated on the basis of population density, which sees metropolitan councils with large high-density population and corresponding rates income, get more federal assistance grants - while rural and regional councils suffer."

The upcoming consultation process will aim to provide information about why roads are in poor condition and what needs to be done.

The consultation process will include a pop-up shop in Taree's CBD in November.

lachlan.leeming@fairfaxmedia.com.au