The Cootamundra-Gundagai Regional Council will look into suing the government over their forced amalgamation in 2016.
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At Tuesday's council meeting they passed a motion to seek legal advice on how to sue the NSW government as well as KPMG, which wrote a paper recommending the council mergers.
Mayor Abb McAlister said council had lost tens of millions of dollars due to the merger and that they wanted to recuperate some of those losses through the courts.
Not all the councillors supported the idea, however, with Cr Dennis Palmer describing it as an unwinnable legal battle that would only cost ratepayers more money in pointless legal fees.
"The umpire's about to make a decision [on demerging councils] and whatever the decision is I don't believe this council will ever get it overturned," Cr Palmer said.
"I am really concerned we've put a 53 per cent increase on our rates on the community, and now to go ahead with the possibility of committing more funds to the legal pursuit of a cause I don't believe we can win."
Cr Charlie Sheahan was in agreement, saying it would do nothing but "antagonise and annoy" the government.
He said the smarter move would be to "plead as humbly as possible" in the hopes the local government minister would agree to unmerge the councils.
However, Cr McAlister said they had tried to ask nicely in the past, but have hitherto made little headway with the higher-ups.
"We have been fronting up to the governments but unfortunately we haven't been getting anything back. It's frustrating me, but it's also frustrating all the people I run into," he said.
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Cr Doug Phillips was on the same page, saying that legal action might get the message across more clearly.
"It will cost us nothing or very little for a bit of legal advice," Cr Phillips said.
"It's not going to cost us any real money and it may provide us some impetus for the state government to make a decision."
Cr Leigh Bowden said she was sick and tired of waiting for the government to unmerge the councils, saying that urgent action must be taken.
"I honestly feel the disregard and disrespect to our community members is absolutely appalling in delaying that determination," Cr Bowden said.
"It may be another consideration for us that we front the minister and the premier and the deputy premier again. I don't mind driving to Sydney again because this is so important and it's absolutely disgusting to our community."
An Office of Local Government spokesman said it was up for council to decide whether or not they should try and sue the government.
"Any legal action is a matter for the council," the spokesman said.
"The Minister for Local Government is currently considering the Boundaries Commission report into the elector-initiated proposal for Cootamundra-Gundagai Regional Council."
Cootamundra-Gundagai residents sent submission to the Boundaries Commission in November last year.
A council delegation met with NSW state parliamentarians in February, and the Boundaries Commission report was submitted to the Minister for Local Government Shelley Hancock MP that month.
A decision is still forthcoming.
The Daily Advertiser approached KPMG several times for comment, but those requests repeatedly went unanswered.
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