Country mayors ready to go into bat for regional councils' financial future

They'll argue a trend of offloading expenses from state and federal onto local governments combined with NSW's rate pegging system have put regional councils' finances under constant threat since 2015.

In the same week Tamworth Regional Council (TRC) votes on a special rate variation to go above this year's rate peg, its mayor Russell Webb will be one of the first speakers the state government's inquiry will hear from in the Tamworth Town Hall on Thursday, June 27.

"Local government in general is going backwards. Every year there is a massive shortfall that continues to grow," Cr Webb told the Leader.

"That's why a lot of councils in the years to come are set to become insolvent."

Cr Webb will be joined by Gunnedah mayor Jamie Chaffey as representatives of the Country Mayors Association (CMA).

The association lodged a submission to the inquiry in April.

"Despite the clearly important roles of Local Government in NSW, Country Mayors are under ever-mounting pressure, due to financial sustainability barriers," the CMA submission reads.

"If state-required council plans are to be adhered to, if councils are to retain stressed staff in challenging recruitment areas, if infrastructure is to be maintained or renewed as required and if councils are to maintain expected levels of service delivery and solvency, funding for non-metropolitan councils must be increased."

According to the CMA, more than half [38 of 77] country NSW councils reported an operating loss last year.

Some examples of cost shifting the association says add to the deficit, include state-mandated pensioner rates rebates, waste and emergency services levies, and reclassifying state roads as local ones "with no warning or consultation".

The state government's Standing Committee on State Development, who are running the inquiry, will also hold hearings in Lismore and Dubbo this week.

"The committee has received submissions from many regional councils in New South Wales, and recognises the valuable input and perspective these councils will bring to this inquiry," Committee Chair and upper house member Emily Suvaal said.

"Regional councils face their own unique challenges and needs. The hearings are an opportunity for participants to offer insight into the financial sustainability of the local government sector in regional NSW, and the level of income councils require to adequately meet the needs of their communities."

TRC general manager Paul Bennett and chief financial officer Rami Abu-Shaqra are also slated to speak at the hearing in the town hall.

Earlier this month TRC made its own submission highlighting the impact of state government cost shifting and railing against rate pegs.