Following the rejection of applications for special rate variations in 2006 and 2005 by Local Government Minister Kerry Hickey, Great Lakes Council's Operation Expenditure Committee will now recommend to council that it start working on an application for a nine per cent rate rise in 2007.

"That is so important for our financial future, we need to start planning now," Great Lakes Council mayor John Chadban said.

Council's Operation Expenditure Committee met recently to discuss what works and projects could be cut from the current budget.

"Urban roads will probably be the hardest hit," Mayor Chadban said.

"The library has also taken a significant cut. We have basically taken a lot off all sectors of our operations, some $1.047 million in total, which will result in a surplus.

"We will also be looking at ways to reduce our loan program."

The proposed budget changes are expected to be ratified at council's ordinary meeting on September 26.