It will be the second time local residents have taken their message to Armidale Regional Council.

The group of concerned residents say they will urge councillors and staff to manage Armidale council's finances better, increase budget transparency and reassess rates to a level that better reflects incomes and economic growth in the region.

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As the local government area faces the prospects of a 20.5% rise in land rates, residents have formed an activist group titled 'Protest against the extreme rates of ARC'.

Last month the group atteneded the November council meeting to voice their objection to the proposed rate increase currently being put to the community.

Armidale's local government has been operating on an income provided by a special rate variation (SRV) for nearly two decades, and Armidale Regional Council says it will be unable to continue to provide the current level of services and asset renewal unless a rate increase of 20.5 per cent is approved and implemented next year.

The other options being proposed are to either replace the loss of the current SRV of 10.5 per cent to maintain council services in the short term (but increase the backlog of asset renewal) or cease the rate variation and cut back on council services and infrastructure maintenance.

Former council candidate Joshua Fittler initiated the protest on social media where he rallied residents to urge councillors (and staff) to better manage Armidale Regional Council's finances, increase budget transparency and set rates to a level that reflects incomes and economic growth in the region.

On Wednesday, the council meeting will be held in the Guyra council building.

The protest will begin from approximately 4pm to coincide with the ordinary council meeting, although the increase is not on the agenda for Wednesday's meeting.

Council is still accepting submissions from the public on the proposed rate increase until Thursday.

The council started community engagement on the three SRV options for consideration in its final proposal to IPART, and to provide further clarity on the mandatory process for harmonisation of rates, at the beginning of November.