The average ratepayer will pay an additional $115 as Shellharbour City Council enters its third year of a 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.

Despite a strong return on investments in recent years, Shellharbour Mayor Marianne Saliba said the SRV was still required to bring Shellharbour City's rates in line with other council areas.

"We have an obligation to renew assets ... the SRV is about securing the council's financial position into the future," Cr Saliba said.

She said the city's population was forecast to grow from almost 68,000 to more than 85,000 by 2036.

Cr Kellie Marsh opposed the draft budget and said it was her hope the community would "come out in force" with feedback, pointing out $39.1 million was to be spent on the City Hub project compared to just $6 million on asset renewal.

"In my opinion it is a flawed document and hypocritical," Cr Marsh said.

The council's general manager, Michael Willis, said no money from the SRV was being directed towards the City Hub, however there was "an element of asset renewal" required for the council's major asset, its administration building Lamerton House.

Mr Willis said this was being done before selling the building and constructing a new one.

Cr Peter Moran said he found it "offensive" that the council was linking the proposed City Hub facility to asset renewal.

The draft budget and associated plans will be on public exhibition from May 2 to June 1 and available on the council's website, www.shellharbour.nsw.gov.au.

aarnold@fairfaxmedia.com.au>