Leeton Shire Council and others across the state will be able to increase the revenue they can collect from rates by a maximum of 2.6 per cent in the 2020-21 financial year under the rate peg announced by the Independent Pricing and Regulatory Tribunal (IPART).

The rate pegging announcement is a standard annual increase to council's rates and charges set by IPART. Rate pegging was introduced by the state government to limit the annual rates increase by councils.

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"The staff will certainly recommend the increase ... council needs the funds to remain financially fit for the future, which was a prerequisite for remaining a stand-alone council," Leeton shire general manager Jackie Kruger said.

"In particular, council needs additional funding to catch up on its infrastructure maintenance and renewals backlog.

"Unless council votes to cut services, the rate peg is very necessary."

The rate peg for 2020-21 is similar to the rate peg in recent years, which is 2.7 per cent currently and was 2.3 per cent last financial year.

IPART has recognised councils are facing cost pressures from increases in the emergency services levy, which is one of the cost components in the index.

"Nobody enjoys paying more and, in the light of the current drought, council acknowledges this increase may be tough for some," Mrs Kruger said.

"Council was considering applying for a special rate variation on top of the annual rate peg as outlined in last year's operations plan, but removed that from this year's plan in consideration of the impacts of drought on farmers and businesses.

"In other words, the 2020-21 rates increase will very likely also be limited to the annual rate peg only.

"From our public engagement it is council's view Leeton residents are looking for (our) services to, at least, remain stable and, in some cases, improve or increase.

"To achieve this council needs adequate resource to deliver the adopted projects and programs."

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