A GUNDAGAI Shire councillor has broken ranks by urging his fellow councillors to consider a merger because of a dwindling "pot of gold" whereby council can ill-afford to keep up with the backlog of projects.
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Councillor Ron Magnone is going against the grain in the politically explosive issue of council amalgamations, and claims the financial position of Gundagai Shire is "unsustainable".
"We rely on hand-outs and in-kind support."
- Councillor Ron Magnone
"We rely on hand-outs and in-kind support," Cr Magnone said.
"There are pros and cons (to amalgamation), but let's not stick our heads in the sand to the idea. There is only so much money we are going to get."
Cr Magnone's comments come as the NSW Government dangles a $105 million carrot in front of regional councils considering a merger.
The Fit for the Future incentive program, announced last week, is designed to encourage local government areas that run consistently high budget deficits to improve their position by pooling funds with other councils.
Cr Magnone cites a backlog of projects - including a new treatment plant, road and sporting facility upgrades - that are unable to go ahead because of insufficient funds.
Gundagai mayor Abb McAlister rejected Cr Magnone's "opinion" and said it was an isolated view within council.
"We are very efficient and work very well as a community," he said.
"I think you will find that the incentives on offer are not as great as you think they are."
While $105 million is on the table for regional councils, Cr McAlister said divided between all councils, the amount on offer could be far less.
He also pointed to council's recently approved $3 million bank loan to fund an upgrade of the main street as a nod of approval for council's financial position.
"You've got to look at the big picture. If we weren't sustainable, we wouldn't have been given the loan," he said.
Cr Magnone quipped: "If we were sustainable, we wouldn't have to borrow the money".