Mayor Greg Conkey has waived the development application fee for signs slamming council plastered around North Wagga by frustrated residents.
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Cr Conkey used Monday night's council meeting to ratify his decision not to charge members of the North Wagga Residents Association for protest signage they erected in December.
The signs blame council for earlier catastrophic floods in 1974 and 2012 and claim North Wagga is being "sacrificed" to protect the central suburbs from future flooding.
The signage is the latest instalment in the association's ongoing feud with council over improved flood protection for their village.
Protesters told The Daily Advertiser at the time that a council ranger visited some of their houses and asked them to lodge a development application for the signs or each cop a $3000 fine.
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On December 21, Cr Conkey authorised a development application for the signage to stay at several sites on Hampden Avenue and on Mill Street for no more than six months.
The mayor has the ability to exercise, in cases of necessity, the policy-making functions of the governing body of the council between council meetings, under NSW law.
He has now formally waived the development application fee of $285 for the signs in a decision that was supported by other councillors.
"I support people's right to protest hence waiving the fees but I appeal to everybody to please be mindful of the rules and regulations that we have in place concerning development applications for signage and things like that," Cr Conkey said.
"I waived those fees and that was ratified in a unanimous decision again to support the people of North Wagga."
An external company is currently undertaking a $46,000 peer review of a feasibility study examining the one-in-20 year flood levee upgrade proposed for North Wagga.
North Wagga Residents Association treasurer Fiona Ziff said Cr Conkey waiving the fees was "the least he could do".
"And it'll be the least of his worries ... If there are flaws found in the report that's going to be a very sad reflection on council," she said.
Cr Conkey said on Monday night he was looking forward to the peer review being completed.
"When that review is completed, that will form part of my decision making process, bearing in mind we need to look after the people in North Wagga," he said.
However, Cr Conkey said he was "a bit confused" about whether the North Wagga Residents Association represented the views of all the suburb's occupants.
Ms Ziff hit back at the mayor's comments, saying she was confused about why he raised that particular concern when the association definitely represented the majority of residents.
She said the peer review was initiated because council couldn't answer questions from residents about the main arguments they had used to deny North Wagga a one-in-100 year levee, in their original "flawed" feasibility study.