Dubbo Regional Council will not follow the lead of Gilgandra Council and refuse to pay additional Fire Emergency Service Levy costs to the state government.
The increase came without warning in May this year when most councils had finalised their 2019/20 budgets.
The state government upped the cost of the levy due to an increase in workers compensation coverage for volunteer and career firefighters.
The Gilgandra council recently resolved not to make a payment of the additional contribution levied.
But Dubbo Regional Council mayor Ben Shields said Dubbo's position was to have an on-going dialogue with the state government to try and achieve a better outcome.
Member for the Dubbo electorate Dugald Saunders said he agreed with that approach.
"I can sympathise with Gilgandra, " Cr Shields said.
"Dubbo Regional Council has also been hit by this emergency services levy increase.
"What annoyed Dubbo councillors is that our budget was also set just before the state government's announcement of a fee hike.
"While I support Gilgandra's position, we will work to have a reduction in the fees proposed."
Councillor Shields said Dubbo Council recognised emergency services are absolutely vital to the community.
"However, we find the state government's method of determining costs questionable," he said.
"Therefore, a frank and open discussion on a reduction is needed."
Dubbo MP Dugald Saunders said he was working on resolving the issue with the Dubbo Regional Council.
"I understand that negotiations are ongoing in relation to the levy, and the government is listening to the concerns of councils," he said.
"I have been speaking with the Local Government Minister and the Deputy Premier in relation to concerns that have been raised with me through councils and I am hoping there can be a resolution found in the not too distant future."
Councillor Shields said he supports calls for the state government to fund the first year of the extra costs surrounding the levy.
"Dubbo Regional Council is very annoyed this was forced on us after our budget had been drafted, and there was a lot of other council's in the same situation," he said.
"Our annual fee for 2019-20 is $1.2 million. This is an increase of $198,137 on the previous 12 months, and this has the potential to impact on councils ability to deliver other projects."
NSW Labor supports the expansion of fire fighters workers compensation, but argued it should be funded through general revenue and not as a levy on ratepayers.
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