Councillors Jasmin Jones, Geoff Frost, Greg Butler, Cecil Burgess and Garry Ware all opposed the 10.9 per cent rate change.

The General Manager's report stated the increase would help facilitate bitumen resealing ($250,000), gravel resheeting ($50,000), a timber bridge replacement program ($200,000) and other urban resealing ($130,000).

At public meetings in January, at Yass and Murrumbateman, locals voiced their concerns and council staff endured stiff opposition to the proposal.

General Manager David Rowe said he understood why people are against the proposal.

"It’s a difficult exercise to ask the community to pay more for their facilities and services that are currently being provided,” Mr Rowe said.

“The reality is that revenue to Council has been steadily reducing but costs and community expectations for services have been increasing."

Despite Mr Rowe's comments, councillor Geoff Frost claimed not proceeding with the SRV was essential.

"Can I just say not going ahead with the Special Rate Variation is neccessary if we are actually going to do anything with Fit for the Future," he said.

"We've gone to the community, they've said pretty resoundingly 'no we don't want that' and we can't go ahead and ignore them anyway then expect their support for Fit for the Future."

Councillor Cecil Burgess agreed and said it would negatively affect the livelihood of those living in the rural areas.

"I've had that many phone calls from farmers saying their rates would be two to $3000 more than what they have been paying and that's why I'll oppose it." 

Councillor David Needham supported the SRV proposal but said Yass Valley Council's consultation with the community had been unacceptable.

"We've done a very poor job of communicating this to the community, we haven't made a case for the rate rise and you could even say we haven't earned the right implement a rate rise.

"On the basis that we haven't made a case, maybe we shouldn't take it on, but I think it's just going to make things worse later on if we don't (implement the rise)."

Mr Rowe said with the proposal now rejected, there will be some tough decisions ahead.

“Council is establishing a Community Working Group to work alongside councillors and senior staff to discuss these exact things - where does the rate dollar go, where can we make savings, can we sell assets, will this be financially responsible in the long term, where can cost savings be made?"