A hike to the emergency services levy has thrown local council budgets into disarray

The Emergency Services Levy is a mandatory cost on councils and insurance companies to fund emergency services across NSW - while the majority is paid by insurance premiums, 14.6 per cent is covered by the state government and 11.7 per cent is paid for by local councils.

But with massive increases to emergency services budgets, Local Government NSW says the increased costs could send some councils bankrupt.

"The ESL is an absolutely blatant cost shift by the state government," said LGNSW President Darriea Turley.

"The ESL has seen stratospheric increases year-on-year ... Now it appears councils are being asked to fund massive rises in emergency services budgets, including a 73 per cent increase in the budget allocation to the State Emergency Service."

The rise comes after IPART released rate pegs for the 23-24 financial year, and combined, the numbers paint a depressing picture for some council budgets - with Tenterfield left with nothing.

"Hornsby and Shellharbour councils lose around 75 per cent of their approved rate rises ... while Bourke Shire Council will lose 94 per cent, Yass Valley Council will lose 96 per cent, and Tenterfield will lose 119 per cent," Ms Turley said.

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Mayor Darryl Jardine from Carrathool Shire Council said that it was a 'great impost' on their council, and all councils.

"They've held it back for a few years, but it's great impost on councils. Not just ours, but every council in NSW," he said.

"Any negotiation will be taken in good faith but I can't see the government budging on this."

Ms Turley said that LGNSW were calling on the government to create a new, fairer method of funding emergency services.

Cr Jardine said that Carrathool Shire Council wouldn't be cutting services but that there were concerns if the levies continued.

"If they continue to lump these imposts on us without any consultation with us, it's certainly going to put a strain on budgets going forward," he said.

"What the government needs to realise is that we start our budgetary process in February - any increases that they're going to thrust upon councils should at least be given to councils earlier in the process."

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