WYONG and Gosford councils have agreed to a voluntary merger that would see them receive a $20 million wedding gift from the state government to help with the new living arrangements.
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A new Central Coast council was likely to be proclaimed next month, and would come into effect early next year, a joint statement from the councils said this week.
Lake Macquarie council, meanwhile, has opted to oppose a merger with Newcastle.
Wyong mayor Doug Eaton said voluntary mergers were the right move, as the state government was determined to push ahead with its reform agenda and would favour councils who agreed to merge.
"The message was pretty clear today - voluntarily merge and we get $20 million and remain in office until the September 2016 elections," Cr Eaton said after a meeting with Local Government Minister Paul Toole this week.
"This will ensure a smoother transition to a new Central Coast council for both staff and the community, and that is what we want."
If the councils hadn't agreed to merge, it was likely a forced amalgamation would come into immediate effect "with no local representation until the next council elections", he said.
"We need to get the best outcome for our community, and this is the only way to go." Gosford mayor Lawrie McKinna said the decision to merge was a defining moment in the Central Coast's history.
He said the community's voice would not be lost under the merged councils, "which is something the NSW government couldn't guarantee" under a potential forced amalgamation.
"This decision means we have secured a much-needed $20 million injection of funding for our region."