Maitland councillor Arch Humphery doesn’t want ratepayers to pay a cent of Dungog’s $51.9 million infrastructure backlog if the two councils merge.
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“There seems to be an expectation that debt will be loaded onto Maitland ratepayers,” he said.
The state government has offered $5 million for two regional councils that accept a merger – less than 10 per cent of what is needed.
Dungog councillors resolved last week to investigate a merger with Maitland after they sounded out Singleton and Port Stephens councils without luck.
“[The $5 million] is not at all a reasonable amount,” Cr Humphery said.
“I’m extremely concerned when we’ve got two other councils that have walked away from any [potential] obligation before [Maitland was to consider the merger].”
Councils across the state are doing it tough and the Fit for the Future program seeks to make those weaker councils stronger.
While Maitland was not among the worst of NSW councils, it had improved its financial outlook in recent months implementing a special rate variation after discussion with residents.
This will boost council’s income 7.25 per cent compounded each year for seven years.
Cr Humphery said a merger without adequate remuneration would not be fair to Maitland ratepayers.
“Look at what we’ve done to be sustainable,” he said.
“[But] there’s almost an assumption that if Dungog is unsustainable [the financial backlog] should fall on Maitland.”
Dungog councillors resolved to ask Maitland to investigate the benefits and drawbacks of a merger and any meeting between the two was not expected before February.
If the two councils agreed to talk, they would receive a small share of the $13 million the government has pledged to aid such investigations.
The mayor of Dungog, Cr Harold Johnston, said Fit for the Future was all about scale and the capacity to deliver services.
“I don’t think Dungog is looking at Maitland as being able to fix that [backlog],” he said.
“[The funding] is going to have to come from the state government.”