Cutting councillor numbers could save Kiama Council almost $100,000 a year and result in "increased interest", according to a report.
However, the report also identified drawbacks like the heavier workload for the remaining councillors.
In April, Cr Mark Croxford had requested a report on reducing the number of councillors from the current nine to seven or five.
That report was tabled at Tuesday night's meeting.
The report stated the total payment for the nine councillors and mayor for the 2022-23 financial year will be $242,990.
Reducing the councillors to seven would cost $199,530 and down to five would be $156,070 a year.
Those represent annual reductions of $43,460 and $86,920.
"Over a four-year term of council there would be a saving of $173,840 (reducing to seven councillors) or $347,680 to reduce to five councillors," the report stated.
"Note this does not take into account any annual councillor and mayoral fee increases determined by the NSW Local Government Remuneration Tribunal which is likely to be in the vicinity of 10 per cent over the four-year period."
Any reduction would also see an additional decrease in superannuation payments and councillor expenses.
Unlike Wollongong and Shellharbour councils, Kiama councillors do not represent individual wards but the whole local government area.
At present Kiama Council has a ratio of one councillor per 2564 residents. A reduction to seven will result in a ratio of 1:3296 and one councillor representing 4615 resident if it were cut to five.
As well as the cost reduction the report identified other advantages, including "increased commitment, interest and participation by councillors generally".
The downsides to any reduction included an increased workload, limitations on the diversity of councillors and less opportunity for community contact.
While council would have to decide to reduce the number of councillors, the proposal would then go to a referendum for the public to decide.
The next available time for one is at the September 14, 2024 local government election.
Setting up a referendum requires a 12-month lead-in, which means any council decision on cutting numbers needs to be made before September this year.
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