Leeton Shire Council speaks out on state government's withdrawal of its subsidy on emergency services levies

Leeton Shire Council said local governments across NSW have been "dealt a low blow" by the state government who, within the last few weeks, has unexpectedly announced the withdrawal of its subsidy on emergency services levies (ESL).

ESLs, which help pay for important non-council services like the NSW Rural Fire Service and State Emergency Service, are currently funded out of local rates income.

The last minute removal of the NSW government's subsidy will mean the local application of Leeton shire's anticipated rates increase for 2020-24 immediately eroded by about $129,000, a situation councillor Reneker, is calling "hugely unfair" and "entirely unreasonable to local councils who are already struggling to make ends meet".

Cr Reneker will submit a report to the May 24 ordinary council meeting recommending council write to the state Treasurer, the Minister for Emergency Services, the Minister for Local Government and Member for Murray Helen Dalton expressing its strong opposition to the government's last-minute decision to impose a larger-than-usual ESL cost increase on councils for 2023-24.

"All councils strongly support a well-funded emergency services sector and fully appreciate the critical contribution of emergency services workers and volunteers,' Cr Reneker said.

IN OTHER NEWS:

"However, going forward, it is essential these non-council services be supported through a more appropriate funding model that is equitable, transparent and sustainable.

"Burdening local council rates is simply not the way."

For Leeton Shire Council, the ESL increase and removal of the subsidy amounts to around an additional $129,000 impost for 2023-24, bringing the total council contribution for ESL to $292,365 per annum.

Stated differently, the full ESL now amounts to close to 65 per cent of the expected increase in rates income for 2023-24, which means council will have access to less than half the allowed rates increase for core council services.

The timing of this development is particularly challenging as it comes late in the local government budgeting cycle, well after IPART's rate determination for the coming financial year.

If the NSW government's decision is not reversed, council's advertised operating deficit will be further worsened by around $129,000.

Our journalists work hard to provide local, up-to-date news to the community. This is how you can access our trusted content: