Country mayors say regional councils hit hardest by cost shifting

REGIONAL councils are being forced to absorb growing state and federal responsibilities, with new figures showing cost shifting has hit $1.5 billion a year across NSW. A report by Local Government NSW found the cost burden had increased 10 per cent in three years, with councils now covering $500 per ratepayer annually. Country Mayors Association chair Rick Firman said regional communities were paying the price. “The figures are not surprising but they are disturbing and hopefully enlightening, as unprecedented operational cost increases in recent years and constrained income growth make financial sustainability a mission impossible for some,” he said. Cr Firman said smaller rural councils often relied on grants for most of their revenue, but funding varied year to year and was no longer keeping pace with costs. He said the financial impact of housing Rural Fire Service assets on council books remained unresolved, despite councils not owning them. Deputy chair Russell Fitzpatrick said councils were being pushed to apply for special rate variations to cover essential services. “This is obviously unwelcome at a community level, given cost of living hikes and the pressure that Councillors have endured has forced some to step down in recent years,” he said.