Fears the state government will take over our water and sewerage service prompted much of the price hike.

Port Macquarie-Hastings Council administrator Dick Persson wants to complete $3.9 million of works to link some of the area’s villages to the sewer within the next financial year.

He fears such projects on the North Shore and at Beechwood, Comboyne and Herons Creek would be put on the backburner if the state government decides to take over operations.

The draft budget for the next financial year, which is on show from today, includes a $26 rate rise, a $78 increase in water fees, and an extra $73 in sewer charges.

Mr Persson said that was about an extra $3.50 a week for the average ratepayer.

“I don’t want to downplay the significance of $3.50 a week for some families, particularly those with interest rates weighing heavily on them,” Mr Persson said.

Mr Persson admitted putting together the $120 million draft budget for the next financial year involved some tough decisions.

But if the government took control of water and sewer, projects planned for smaller communities could drop to the bottom of the priority list in the much larger organisation.

Other factors behind the planned price rise are legislative requirements to set aside $5 million to cover asset depreciation, and the significant cost increase to deliver the water and sewer service.

Former mayor Rob Drew said the planned water and sewer price rises came as no surprise, given the likely impact of the state government review, and the expectation small towns already would be connected to the sewer.

“It’s another example of the state government offloading responsibility to local communities through local councils,” he said.

Meanwhile, Mr Persson has moved to double the small grants program to $171,000 in recognition of voluntary groups’ community contribution.

He put $850,000 for the Wauchope CBD bypass back into the budget.

Other big-ticket items include $13.5 million to upgrade the Bonny Hills/Lake Cathie sewage treatment plant and $15.8 million on the Glasshouse construction.

The budget shows a $50,000 surplus for the coming financial year but anticipates deficits of $3 million and $3.5 million for the following two financial years.

The forecast deficits are based on the worst case scenario if the council lost control of its water and sewer service from the middle of next year.

Interim general manager David Mead is looking at ways to reduce an expected $406,848 deficit for this financial year. Full story in Monday’s Port News.

The draft budget is on display until June 6.