THE threat of amalgamation looms large over the Gloucester Shire with councillors last week unanimously backing a recommendation to apply for a 44 per cent increase to rates over the next three years.
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Council faces an uphill battle to retain its independence with councillors agreeing to apply for a 10.5 per cent increase above CPI (consumer price index) over three years in a bid to increase revenue and reduce a backlog of works estimated at about $74 million.
Mayor John Rosenbaum said council had little option but to apply for a special variation to rates if it wanted to remain viable.
“It’s a substantial increase but I don’t know what else we can do except put the true facts and figures out there,” he said.
“If people want to enjoy the infrastructure, like parks, gardens, swimming pools and roads of a certain level and standard, they have to pay.”
Council had considered an increase that would have seen rates rise by 128 per cent over five years - the optimum amount required to manage the backlog - but was forced to rethink its approach after the community baulked at such a rise.
Cr Tony Tersteeg said the 10.5 per cent increase over three years would merely “plug a leak” and council would still be forced to reduce services.
He said he remained “100 per cent opposed” to amalgamation, but conceded the decision could be taken out of council’s hands.
Premier Mike Baird this week called on councils to put “pride into the back seat” and consider merging with neighbouring councils for the benefit of their communities.
Speaking at the NSW Local Government conference in Coffs Harbour on Monday, Mr Baird’s address was his first direct pitch to the State’s 152 councils since the government unveiled a $258 million package of incentives in September to encourage amalgamations.
Mr Baird said the package was a “once in a generation opportunity to think bold”, urging councils to tell their communities “19th century boundaries” were “something that needs to be challenged”.
The State government has instructed councils to improve their financial situation, or pay the price.
Councils have been given until the end of the year to respond to the State government.
“If we are not able to show our financial sustainability into the future, there are indications they will not supply us with grant money,” mayor Rosenbaum said.
“Or we might not be able to apply for cheaper loans, because of the financial position we are in.”