A merger between Maitland City Council and Dungog Shire Council is likely to be taken off the table on Monday.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
Maitland general manager David Evans has recommended against a merger with Dungog in a report to councillors that will be the subject of an extraordinary meeting.
The report, based on the findings of an independent merger business case presented to Maitland and Dungog last week, recommended that Maitland instead lodge a plan to the Independent Pricing and Regulatory Tribunal to show how it would be financially sustainable into the future.
Mr Evans noted that the seven-year annual rate rise approved last year would be instrumental in showing that Maitland could remain a stand-alone entity.
The merger business case outlined scale, funding shortfalls, disparity in rates and councillor representation among several key issues that made the short-term cost outweigh any long-term benefits for Maitland.
“The merger business case evidences that a merged Maitland-Dungog council, whilst meeting a number of the Fit for the Future benchmarks over time fails to meet operating performance requirements from day one and that this position would continue to deteriorate,” Mr Evans noted.
The Independent Local Government Review Panel recommended a merger between Maitland and Dungog as part of the state government’s Fit for the Future local government reforms.
Dungog Shire’s significant financial issues have ruled out the possibility that it could avoid change.
If a merger was quashed, the council would have to find another way to become sustainable.
Dungog councillors will also hold an extraordinary meeting today to discuss that shire’s future.
In his report to councillors, general manager Craig Deasey noted that rates in Dungog had to rise significantly in the near future, whether or not a merger with Maitland took place.
For land valued at $100,000, general residential rates in Dungog lagged behind Maitland by 34 per cent under the 2015-16 rate structure, while Dungog businesses rates were 130 per cent less than Maitland’s, according to the report.
Mr Deasey did not recommend what his councillors should do next if a merger was taken off the table, which he expected to be the case.
Maitland Cr Bob Geoghegan said the business case showed that Maitland City was lean and had little fat to trim compared to similar councils.
He said this meant Maitland ratepayers received good value for their money.
