Labor's outspoken critics of the proposal - State MP Kate Washington and west ward councillor Giacomo Arnott - have issued a statement calling on the mayor to cancel the planned rate rise following a "flood of submissions to the IPART review process".

IPART revealed on Tuesday that 685 submissions had been received in response to the council's proposal for a 7.5 per cent increase in rates over seven years.

Asked about the percentages for and against, the IPART spokesperson said that "the majority are against the increase, but there are mixed views and different reasons given".

"All [submissions] are being reviewed in the context of the Office of Local Government guidelines which requires the council to consult. The applications and associated submissions are under consideration with a final decision to be released in May."

Cr Arnott said that the council cannot continue to ignore the strong community opposition to the proposal, while Ms Washington added: "The sheer number of submissions cannot be ignored."

The calls evoked a strong rebuke from Mayor Palmer, who said it was ridiculous to suggest that the council would abandon a process that had taken 12 months and many hours of work, engagement and consultation with the Port community.

"We don't yet how how many submissions were against the proposal and even if the vast majority of the 685 submissions did oppose the rate, that is less than 1 per cent of the total population of Port Stephens. There are another 70,000 residents to consider," he said.

"In fact, after considering the strong campaign to oppose the SRV, including doorknocking homes, the inaccuracies being promoted by the Labor Party and the large number of proforma letters, I am surprised there were only 685 submissions."

Mr Palmer said that Port Stephens was the most successful council in all of NSW when it came to grant approvals and "yet we still can't get funding for the many projects the people of Port Stephens are crying out for".

"I am yet to hear of any other options to fund these projects, there were certainly no promises to fund the cycleways, sporting complexes and the like from the state candidates during the recent elections."

Cr Arnott said that in addition to the hundreds of submissions opposing the SRV proposal, a petition of more than 2000 signatures was collected as part of the IPART process.

"What more does the mayor want from residents in order to stop this proposal? There were thousands of submissions during the council process, now Port Stephens residents have overwhelmed IPART with their submissions," Cr Arnott said.

"Eventually the mayor needs to accept that this proposal is toxic and it needs to be withdrawn. People simply cannot afford it."

Ms Washington congratulated the many hundreds of Port Stephens residents who made sure their voices were heard in the IPART process. 

"Despite 13 councils currently going through this IPART process, around 60 per cent of all submissions received by IPART were for Port Stephens alone. That demonstrates the level of anger out there, and it shows that people want their voices heard," she said.