Dubbo's share of a cash incentive of up to $13.5 million if it formed a super council with its neighbours would not go far and it could be left with greater financial burdens, Dubbo mayor Mathew Dickerson says.
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He predicted "most, if not all" of the funds from the state government would be "chewed up in the amalgamation process" and that Dubbo could have to fund projects in neighbouring towns as a result.
The government has offered the package of funds as it bids to reform local government, saying a third of the state's councils were facing financial problems, losing more than $1 million a day.
A sum of $13.5 million is on the table for any four or more regional councils that volunteer to merge, but Cr Dickerson calculated that would provide each of the four with just $3.5 million each.
"Dropping $3.5 million into Dubbo is great as a one-off, but how does it solve a problem for the year after and the year after that," he said.
"It's a carrot dangling but not a long-term sustainable option."
The mayor contested there were further flaws in amalgamation of Dubbo City Council with its neighbours.
He said if it were to take place, the councils of Narromine and Gilgandra were likely to only have one representative elected to the resulting super council, making it "difficult for them to inject a lot of what they want".
"I think they'd feel disenfranchised and from a Dubbo perspective I think we'd need to inject some funds (into the other towns' facilities)," Cr Dickerson said.
"Financially for Dubbo it would be detrimental and from a democratic (point of view) it would be a disadvantage to those three communities of Narromine, Wellington and Gilgandra."
Last week Orana Regional Organisation of Councils (OROC) chairman and Narromine Shire mayor Bill McAnally confirmed OROC had submitted an application to pilot a Joint Organisation (JO), an alternative reform option.
Dubbo council had previously joined fellow OROC members to approve the move.
Cr Dickerson advocated it as a "sensible way to go at this stage".
He said they did not know what shape the future of local government would take - and that he did not think anyone did at this stage - but it was about being "on the bus".
"If (we're) not driving, being near the driver and having some say, rather than the bus hitting you," he said.
