Councillors will receive $26,378, but Mayor David Cooper is not taking an increase in his allowance.

Cr Cooper could have received $84,257 instead of the current $71,148, but he said it would be "hypocritical".

"I've spent all my time in council saying that we need to reduce expenditure and be responsible with ratepayers' money.

"The extra money will go into the budget and not create any unnecessary outgoings.

"When the new mayor is elected later in the year they may choose to take the increase and that's up to them.

"I have no grudges against that."

Following last November's elections, councillors had their pay increased from about $17,000 to $25,410.

The mayoral allowance was increased from about $48,000 to $71,148.

At the meeting, Cr Adam Gill proposed a lower increase to $26,122 for councillors but did not receive a seconder.

Cr Gill said the increase should be set at 2.8per cent, in line with the State Government increase.

"The Commonwealth Bank has predicted inflation to be around 2.5per cent. We have set the tone for the budget around reducing costs in this tough economic time.

"We need to look at savings and deliver infrastructure on the ground."

The council received two submissions on the allowances.

A submission backing the pay rises identified councillors' role to represent their electorate and make crucial decisions.

"If this pay rise assists them to stay focused on the role they were elected to, it will be worth the cost."

The other submission opposed the rise and stated that councillors should not be taking a pay increase in the current economic climate.

"The council may do well to remember that there are a number of ratepayers who have lost their incomes. I have no doubt they would not see these rises in a positive light."