A report by Local Government NSW on the impact of government cost shifting has identified Dungog as the most affected rural council in the state.

The report also identified Cessnock and Maitland Councils both in the top three regional councils in the state hardest hit by cost shifting, each with 16% of their income spent on cost shifting.

Cost shifting occurs when the responsibility or cost of providing a service, concession or function is shifted from one level of government to another, without  the corresponding funding to deliver the new responsibility.

The report shows that 10% of Dungog Shire Council’s total income (before capital amounts) is spent on cost shifting expenses.

“We are asking our community to consider some heavy lifting in respect of a proposed rate rise, council itself is doing some heavy lifting, now we need the community to get on board and lobby the state government on this issue,” said Cr Norman.

The waste levy was identified as the single biggest contributor to cost shifting in NSW. Most rural councils are exempt from paying the waste levy, except in the north coast of NSW, which includes Dungog.

Last year Dungog Shire Council paid the state government $326,000 in the levy and received $57,000 back for recycling projects.

“At a time when recycling is such an important issue this is not good enough,” said Cr Norman.

"We want 100 per cent back.

“The community here is right on board with recycling; we were the first council to have a soft plastic baler and the Boomerang Bags movement is hugely successful here.

“The government tells us the waste levy is about recycling, we are already doing it ourselves.”

But the biggest driver in cost shifting from state government to Dungog Shire Council is road maintenance, Cr Norman said.

“The transfer of responsibilities for roads under the State Government road reclassification reviews that occurred in the 1990s resulted in Dungog Shire Council inheriting an additional 118 kilometres of roads.

“These roads were reclassified from main roads to regional or local roads with the direct impact being the cost shifting of ongoing renewal/maintenance costs and depreciation costs to Council.

Cr Norman said only  minimal compensation was received by council for the road reclassification and Dungog is the only local government area in NSW without a state road.

She called on the community to help the council lobby the state government for a better deal.

“We need to seek a commitment to a one-off bulk roads and bridges funding package for Dungog Shire Council through the Fixing Country Roads Program and request the State Government to match the figure raised each year by Council’s proposed special rates variation,” she said.

The report “Impact of Cost Shifting on Local Government in NSW”  was based on a survey to participating councils conducted by the Local Government NSW (LGNSW), the peak organisation representing the interests of all 128 general purpose councils in the state.

LGNSW, on behalf of councils and members, calls on the NSW Government to:

End cost shifting

Return 100% of the waste levy to councils

Provide sustainable funding for public libraries

Reimburse councils for mandatory pensioner rate rebates

Introduce fairer emergency services funding

Give council greater financial independence