The push comes as the Country Mayors Association of NSW launches its “Invest in Us” campaign, aimed at restoring Financial Assistance Grants to one per cent of total federal tax revenue.
Murray River Council Mayor John Harvie said the issue had been a priority for councils across the region.
“Over time, federal funding to local government has been reduced by almost $4 billion each year, and now ratepayers are being asked to fill that gap,” he said.
“In Murray River Council’s case, grant funding has been cut by $11 million annually, contributing to an unfunded backlog of critical infrastructure projects of around $40 million.”
Chairman of the Country Mayors Association Rick Firman said funding had dropped significantly over the past three decades.
“Investment by successive federal governments in local government through the Financial Assistance Grants has fallen from one per cent of total tax revenue in the mid-1990s to around 0.5 per cent today, and it is just not sustainable,” he said.
Mr Firman said councils were under increasing pressure to deliver essential services.
“Everyone wants parks, sporting fields, swimming pools, playgrounds, roads, libraries and theatres, as well as planning and engineering services. Local government provides these services, but it is getting harder and harder to do so.”
He said restoring funding to one per cent would significantly improve council finances and reduce the need for rate increases.
The campaign will involve engagement with state and federal politicians, local stakeholders and the community.
The funding issue is also under review as part of a federal inquiry into the financial sustainability of local government.
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