The details are revealed in the council's draft budget, which councillors voted to put out for public comment at Tuesday night's meeting.

Council has labelled the budget a 'return to a routine', after two years of spending aimed at helping the community recover from COVID.

Big ticket items in the budget include the new sporting precinct, the Orange Regional Conservatorium and the next stage of the southern feeder road, west from Anson Street, which has been allocated $14.7 million.

Spending planned for the following year includes $6 million for a new water reservoir and underground pipes to bring water to the new Shiralee housing area, $5 million for more progress on the FutureCity CBD upgrade $2 million for upgrades at the Orange Regional Airport and $2.1 million to build the next stage of the Euchareena Road landfill site.

The draft budget shows a consolidated operating deficit of $931,748 for 2022/33.

"We have a significant budget deficit this year but that's about continuing to deliver the facilities that are needed in a contemporary city like Orange," Mayor Jason Hamling said.

He said the soaring price of steel and concrete could add "significant increases" to the costs of key construction projects, but this was something council was working through.

"We're looking for solutions such as staging projects and seeking extra grant funding that will let us get on with the work. There's no doubt we'll be relying on support from other tiers of government to deliver projects such as the sports precinct and the conservatorium."

A 2.5 percent rate rise, which is yet to be approved by the Independent Pricing and Regulatory Tribunal, is factored into the draft budget.

Orange City Council's Finance Committee chair Cr Kevin Duffy said the increase was important.

"The Council has to balance the delivery of services against the pain of any rates increase from residents."

"As councillors we have to balance any impact against the need to keep the council in a solid financial position where roads and footpaths can be maintained and major projects can be delivered.

"It makes more sense to have small rates rises than to pretend that avoiding rate increases isn't simply pushing a problem further down the road."

The draft budget will be display for comment for 28 days at yoursay.orange.nsw.gov.au

A report about community submissions will be brought to a council meeting when the final budget will be considered in June.