NEW ENGLAND mayors are fighting a state government grab to raise the Emergency Services Levy.
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The levy is a cost imposed on councils and the insurance industry to fund the state's emergency services budget.
The mayors warn a 73 per cent increase in the levy could impact local services and see the cancellation of infrastructure projects.
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Their concerns are backed by the local government peak body, Local Government NSW.
The fight began earlier this year, when the state government called on local councils to shoulder an increase in the levy, a move that could erode any gains made by recent rate rises.
"This is an alarming development coming late in the council budgeting cycle and well after the IPART's rates determination for 2023-24," Local Government NSW President Darriea Turley said.
"The effect will leave some councils with insufficient funds to cover cost increases in other areas.
"These costs will need to be met by cuts to staff and services."
Armidale Regional Council is being slugged an extra $350,000, bringing the levy total to more than $1 million. That would effectively wipe 10 per cent from the recent rate increase.
Inverell Shire Council's emergency services levy will increase by $188,000, bringing the total to more than $500,000, which takes 34 per cent of the rate increase they were awarded.
Tenterfield is bracing for a similar hike in its levy which would see it lose 119 per cent of its approved rate rise.
"This [rise in the levy] just came out of left field, we have to find the money from somewhere else," Tenterfield Deputy Mayor John Macnish said.
"You prepare a budget and think everything's accounted for and then this happens, it's very disappointing."
Armidale Regional Council Mayor Sam Coupland called on the State Government to develop a fairer way of funding emergency services.
He warned the "last minute decision" to impose the levy cost increase could mean a reduction in local services and the cancellation of infrastructure projects.
"As a consequence of the unannounced 73 per cent increase in the State Emergency Service budget and an 18 per cent increase in the Fire and Rescue budget, Council's approved SRV rate increase to provide essential community services and infrastructure has been significantly eroded," Mayor Coupland said.
The mayors also wrote to the Independent Pricing and Regulatory Tribunal, or IPART, which approved all applications by New England councils to raise their rates.
They argued the "forced emergency services contribution was manifestly disproportionate to the 2023-24 rate cap, resulting in extra financial stress".
Glen Innes Severn Mayor Rob Banham similarly wrote to the ministers involved but said he received an indifferent response.
The mayors' calls were backed by the local government peak body, that sought to "unshackle this payment from council rates".
