![Wagga mayor Dallas Tout says the NSW government is passing on emergency services costs to councils and their residents. Picture by Madeline Begley Wagga mayor Dallas Tout says the NSW government is passing on emergency services costs to councils and their residents. Picture by Madeline Begley](/images/transform/v1/crop/frm/182096266/28424d8d-6254-41d6-aa92-905020c0d164.jpg/r0_498_4868_3246_w1200_h678_fmax.jpg)
A group of Riverina councils have called out the decision to stop subsiding local government's contribution to state emergency operations.
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The 11.7 per cent contribution from NSW councils to the emergency services levy is used to help operate state-run organisations like the State Emergency Service and the Rural Fire Service
Next financial year, it will increase by $77 million, and there will be no subsidy to help councils pay.
The remainder of the levy is covered by insurance premiums with the NSW government picking up 14.6 per cent of the bill.
Riverina Eastern Regional Organisation of Councils (REROC) chairman Rick Firman said some councils might be forced to cut services or staff in order to afford the rise.
"At the very least it's very frustrating for us when we are working hard and we're running on the smell of an oily rag," he said.
"Councils will have to cut services or they'll have to cut staff to help fund this increase - it's not sustainable and they have to realise that."
Despite allocating $1.4 million for the levy in the budget, Wagga mayor Dallas Tout said Wagga City Council would have to come up with another $200,000 on top to pay the entire fee.
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"We're having to funding substantially increasing costs that seems to have no limits," Cr Tout said.
"The other really frustrating thing is people are already paying in their insurance anyway and now they're paying through our councils."
Cr Firman said Temora Shire Council's levy fee rose by 39 per cent to $503,015, but they had budgeted for $375,000.
For Hay Shire Council, Mayor Carol Oataway said the increase without any subsidy will use 88 per cent of their approved rate rise.
"It's just another cost imposed on councils at a difficult time," she said.
"We agree [the services] need to be funded, but through a fairer and more transparent way that benefits more councils."
Local Government NSW is calling for the government to restore the subsidy for the 23/24 financial year, and find a fair and more sustainable way to fund emergency services in NSW.
Cr Firman said REROC had already set up a meeting with the new minister for local government Ron Hoenig to discuss the subsidies cessation.
"These are State Government agencies that Local Government is being forced to fund at the expense of providing services to local residents and businesses," he said.
"It is not acceptable that the State should cost-shift its financial responsibilities to Local Government. This is made worse by the fact that the revenue councils raise is capped by the State, so it is impossible to pay these increased contributions without removing services from the local community."
Cr Tout said the extra funding would come from money usually used for playground, footpaths and non-grant related funds.
"To have such a massive increase and just lay them off on councils - it's a huge increase," he said.
"This is more funding we'll have to find... we might have to cut a service."
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