A MERGER with Gloucester Shire Council would have a significant negative financial impact on the Great Lakes, a report has found.
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Consultants Morrison Low were commissioned by the Great Lakes and Gloucester councils to investigate whether a merger would be viable.
It came in response to the Independent Local Government Review Panel’s recommendation that Gloucester consider a merger with either the Great Lakes or Greater Taree City councils.
‘‘Morrison Low found that there would be significant financial shortfalls at the inception of a merger,’’ Great Lakes Council general manager Glenn Handford said.
‘‘These shortfalls would not improve over time.
‘‘In fact, the findings show that the merged councils would have a deteriorating financial position in the future. At this time, a merger would not be feasible.’’
The main areas of concern highlighted in the report were infrastructure and operating performance gap.
The report found that if the councils merged, Gloucester would require $5.4 million each year for the first five years and then $3.3 million each year for five years for infrastructure maintenance, renewal and backlog.
Great Lakes would require $1.2 million for the first five years and $607,000 per year after that.
The report concluded that Gloucester’s operating performance funding gap, a measure that looks at whether a council is running a deficit or surplus, was $3.3 million per year and Great Lakes was $245,000 per year.
‘‘This conclusion accords with Great Lakes Council’s preferred position, which is to remain as an independent council for the time being,’’ Mr Handford said.
The report is on public exhibition until June 5.