Dubbo councillors all voted for an increase to their pay on Monday night.
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Dubbo Regional Council has been reclassified as a regional centre by the Local Government Remuneration Tribunal. It means the maximum amount the councillors and mayor can be paid has increased.
The mayor will now be paid $60,080 a year, while the councillors get $24,320.
Mayor Ben Shields chose to leave the room when the decision about his pay was made as he saw it as a conflict of interest.
Deputy mayor Stephen Lawrence said while it may be splitting hairs, the increased pay was "more of a promotion rather than a pay rise".
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"The reason for it is that Dubbo Regional Council has been reclassified. We've been moved up, essentially up a rung on the ladder of councils," Cr Lawrence said.
"We're now a regional council as a consequence of the merger, we've been moved into a higher category and that means that our pay allowance now fits into the category of councils on that higher rung."
Before the merger and accounting for increases, Cr Lawrence said the two mayors and 20 councillors would have been paid $393,822, now it's a total of $303,280.
"Basically, we're spending $100,000 less in our region on mayors and councillors. So if there are people out there who are concerned... that the community is copping more for the payment of councillors and the mayor, that's certainly not the case," he said.
Councillor Kevin Parker said the increased pay equated to roughly an extra $4 an hour for the councillors.
"All of us would agree we don't do it for the money, we do it for the community," Cr Parker said.