Wollongong and Shellharbour city councils would be forced to merge under a plan outlined by the State Government on Friday.
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Kiama would also be swallowed up by Shoalhaven city in a move certain to anger residents and council members in the seaside town.
The bombshell has come out on the last Friday before Christmas, allowing much of the shock to be absorbed by the holiday break.
The Illawarra councils would be among several southern councils to merge, under the proposed amalgamations which will be forced upon the local government sector.
Wingecarribee would be left intact.
Queanbeyan and Palerang would also be merged. Eurobodalla and Bega Valley councils would remain as they are.
The Local Government Association of NSW posted two maps showing the ‘‘proposed’’ council mergers in Sydney and regional NSW.
An association spokeswoman said the maps form part of a report due to be released by NSW Premier Mike Baird and Minister for Local Government Paul Toole at noon on Friday.
In regional NSW, 42 councils will be reduced to 20.
The proposal reduces greater Sydney councils from 43 to 25.
The moves to force Wollongong, Shellharbour, Kiama and Shoalhaven into mergers was foreshadowed in October in the “fit for the future” report.
Then, Local Government Minister Paul Toole released a report from the Independent Pricing and Regulatory Tribunal (IPART), which showed just 52 of 139 councils were deemed to be financially fit.
Shellharbour and Kiama failed to meet the government’s financial target.
This led IPART to suggest a “merger between Wollongong and Shellharbour could be explored”.
Likewise, a merged Kiama and Shoalhaven council “would likely perform better in terms of long-term financial sustainability,in particular for Kiama given the potential efficiencies available from a merger”.
Releasing the report,the minister also indicated mergers would be on the cards for 87 NSW councils judged not fit.
“I urge councils to consider these IPART findings for their council and hold discussions with neighbouring councils … so they can deliver better value for money for ratepayers now and into the future," Mr Toole said in October.