The State Government has allowed 20 councils to lift their rates by more than the pegged rate of 2.6 per cent.

The biggest rises are in North Sydney, Port Macquarie, Greater Taree and Moree Planes, where rates have been increased to between 10.5 and 9.25 per cent.

The increases have been announced as rises in electricity, gas and water prices, road tolls and taxi fares come into effect.

Local Government Minister Barbara Perry says the councils were allowed exemptions from the rate peg because they showed they would spend the funds on worthwhile special projects.

"Some councils are renewing roadworks, there are some environmental projects that are being done that are quite innovative and that the community supports, so it's quite varied and it does demonstrate how different councils across NSW have different things that they need to do," she said.

But Opposition local government spokesman Chris Hartcher says approving rate rises above the cap shows the Government is not meeting its responsibilities.

"Many State Government responsibilities, especially in the area of road maintenance, have been forced by the State Government onto local councils," he said.

"The State Government isn't doing its job, it's making councils do its job for it and we as ratepayers are forced to pick up the tab."

Six of the councils that applied to charge higher rates - Hornsby, Byron Bay, Woollahra, Cootamundra, Port Stephens and Eurobodalla - were knocked back because they could not prove they had a sound business case.

Rates will rise above the standard in the following council areas:

• Ballina: 6.2 per cent
• Bega: 6.35 per cent
• Blue Mountains: 7 per cent
• Camden: 7.1 per cent
• Coffs Harbour: 7 per cent
• Greater Taree: 10 per cent
• Kiama: 6.5 per cent
• Kogarah: 5.9 per cent
• Ku-ring-gai: 5.75 per cent
• Lake Macquarie: 5.3 per cent
• Lismore: 3.05
• Moree Plains: 9.25 per cent
• Nambucca: 7.64 per cent
• North Sydney: 10.54 per cent
• Parramatta: 7.5 per cent
• Port Macquarie: 9.96 per cent
• Queanbeyan: 8.63 per cent
• Randwick: 5.29 per cent
• Rockdale: 5.6 per cent
• Sutherland: 6.58 per cent

full article: http://www.abc.net.au/news/stories/2010/07/02/2942942.htm