Cr Rosenbaum said council’s desperate financial position had prompted the decision.

Councillors recently voted to support an application for a rates increase of 18 per cent over the next five years.

“That’s why I’m doing it,” he said.

“I did speak about the option of donating any proceeds from the pay increase back to council at our last meeting.”

Cr Rosenbaum said he would not pressure other councillors into donating their pay rise back.

Councillors will receive an extra $250 in pay this year as their remuneration rises from $10,490 to $10,740.

The mayor receives an additional $23,440 on top of his councillor fee, up from $22,870.

Broken down, councillors receive a weekly payment of $206.54 for their services, or $1.23 per hour.

“The 2.5 per cent fee is an increase that is determined by the Department of Local Government,” Cr Rosenbaum said.

“If you don’t accept that increase as a council you can’t make it up the next year.

“As a rural council we are already on the lowest tier in terms of remuneration.”

The mayor said in recent years council had made significant savings by reducing the number of councillors from nine to seven.

“None of us claim expenses for phone calls or travel,” he said.

“The money we do get paid never covers the time spent in service to the council.”