The local government minister has launched an extraordinary attack on NSW councils worried rising costs will force them to cut jobs, close services and shelve infrastructure plans.
Councils have been told their contribution to the budgets of fire and emergency services would rise 19.5 per cent next year in relation to the 2022 floods, Black Summer bushfires and removal of a state government subsidy.
But Local Government Minister Ron Hoenig had a clear message for the mayors and councillors flooding his office for help to cover the rise: get your own house in order first.
The former longtime Botany Bay mayor used Question Time on Tuesday to highlight "egregious expenses" in recent years including Kiama Council's $105 million for an aged care facility, Liverpool City Council's $350,000 renaming to the City of Liverpool and Ryde City Council's $110 million civic centre.
"Local government need to face their own expenditure issues before they come bleating to the state government asking for an allocation of funds when it is facing a $180 billion deficit," he said, referencing the state debt projected for 2025/26.
He also revealed the auditor-general had identified material misstatements or omissions in one-third of councils' annual reports in the past year.
"The 2021/22 audit report discovered errors worth $1.3 billion," he told parliament.
"Ninety-four out of 128 councils reported high-risk audit findings indicating his weaknesses in their processes."
The attack raised eyebrows on the opposition benches.
"You're supposed to be for local councils, not attacking them," MP Adam Marshall shouted at Mr Hoenig.
The peak body for councils in NSW warned a month ago the "sky-high increases" in the emergency services levy would "be catastrophic for many councils, and could see some become insolvent".
Some councils including the Yass Valley, Bourke and Tenterfield shires face the prospect of the levy swallowing nearly or all of their rate rises for the coming year.
Councils can raise rates by 3.7 per cent from July, although some with higher population growth are permitted to hike them by 6.8 per cent.
One of the larger councils, Northern Beaches, said the levy increase meant it needed to find an extra $3.1 million.
"This sudden announcement by the NSW government came after we had finalised our draft 2023/24 financial year budget and started consulting our community on a plan we can no longer afford to fully fund," Mayor Sue Heins said last week.
