The proposed rise in the 2010-11 budget would if approved mean a 6.26 per cent increase on the State Government's recently-announced rate cap of 2.6 per cent.

For the council to win approval from the government, it must show evidence of extensive consultation and support from ratepayers.

Councillors have been told a publicity campaign will be launched to convince residents the increase is warranted.

A report prepared by council staff stated the objectives of the campaign were to 'shift public opinion' and to 'educate' staff' to sell the rate rise.

While details of the campaign are yet to be finalised, Mayor Bruce MacKenzie said he was confident ratepayers would get behind the move.

"By June last year we had spent $5.6 million on roads roads, not airy-fairy things,’’ he said.

‘‘It will be spent on things people can see.

He said it was the number of rural roads within the Port that was responsible for the rate hike.

‘‘If you compare to other council’s like Newcastle or Lake Macquarie they don’t have as many rural roads. Most of Newcastle’s roads are tarred and sealed, whereas we have roads that go for kilometres that are unsealed.’’

Cr MacKenzie defended the size of council’s deficit however, saying once again that the council was not experiencing any financial difficulty.

‘‘This has nothing to do with the deficit,’’ he said.

‘‘We are travelling all right and I will be on the warpath to make sure this money is spent right.’’