Research commissioned by Review Today shows only one in two large councils is sustainable based on their present financial and infrastructure conditions, however the study does not review the financial and infrastructure conditions of the smallest 56 of the 152 councils in NSW.

Research Director of Review Today, Professor Percy Allan AM, who chaired and directed the NSW Local Government Inquiry (LGI) said "the Local Government Inquiry estimated that in 2004/05 NSW councils had $6,300 million of infrastructure (e.g. roads, storm-water drains, buildings, water and sewerage systems, etc) that was unsound and/or unsafe. It found that this backlog was growing by about $500 million each year because of inadequate council spending on renewing structures and buildings that had reached their used by date. It projected that the backlog would exceed $21,000 million by 2020 unless the situation was rectified."

Mr Bob Gaussen, Managing Director of Review Today, said that "a strong business case must be made by each council to its citizens and the state government about what exactly needs to be done to ensure that its long term planning will achieve genuine sustainability."

President of the Local Government Association of NSW, Cr McCaffery said that "Local Government has been very upfront about the challenges it is facing, and is in the process of doing its bit to deal with the problem by improving asset management systems and other processes."

"It is beyond belief that in this climate we have a state government reducing the funds available to councils for infrastructure, most recently by cutting developer contributions" she said.

Councils across the State have called on the Iemma Government to delay plans to slash developer contributions. In an emotive first business day of the Local Government Association Conference in Coffs Harbour on Monday, delegates said the cuts could push some Councils to financial breaking point.

"Councils across the State are really concerned these cuts will lead to new communities being without crucial infrastructure like libraries, community centres and sporting facilities" said Cr McCaffery.