Dungog Shire Council might increase rates to cope with a $42 million road work backlog, mayor Harold Johnston says.
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The shire will receive $401,470 this financial year as part of the federal government’s Roads to Recovery program.
But this will only fund about 1 per cent of the shire’s infrastructure needs, so councillors and staff are working out how to reduce the remaining backlog.
Like all other local governments statewide, Dungog will have to prepare a submission for the state government to explain how it will remain financially viable, as part of plans to overhaul the local government system.
If Dungog cannot remain a stand-alone council, one possibility is a merger with Maitland City Council.
But the Mayor of Maitland, Cr Peter Blackmore, said the infrastructure backlog would be a serious consideration if merger talks eventuated.
He said it was up to Dungog to initiate a possible amalgamation proposal if it was unable to continue operating on its own.
“We certainly cannot carry that debt, particularly when we have been to IPART [Independent Pricing and Regulatory Tribunal] to ask for a seven-year rate increase,” Cr Blackmore said.
“We would have to go to the Office of Local Government and ask for help because it would be unfair to throw it back on the ratepayers of Maitland.”
Dungog will receive less money for roads this financial year compared with Maitland City Council ($592,825), Cessnock City Council ($759,719), Muswellbrook Shire Council ($413,439), Singleton Council ($552,786) and Upper Hunter Shire Council ($864,729).
Cr Johnston said there was a range of options to bridge the infrastructure gap under council consideration.
But he said council needed a solution that would also cater for its other responsibilities, such as parks and recreation.
“There is a whole plethora of things, it’s not just roads,” he said.
“The rates and charges in Maitland, for example, are higher than Dungog’s.
“We need to know what the community expects of us.
“But our rate increases over the years haven’t kept up with where they should be.”
Cr Johnston said increased operations at Martins Creek Quarry had caused more wear and tear on Dungog’s roads.
He said part of the problem was that all roads in the shire were council’s responsibility, with none classified as state or regional.
“Dungog and Gloucester are the only two councils out of 152 in the state that have no state or federal roads,” Cr Johnston said.
“There are 715km of roads in the Dungog shire and they are all the responsibility of council.”
Shire general manager Craig Deasey said Roads to Recovery was not an application-based program, instead the government distributed the money as it saw fit.
