General manager Glenn Wilcox delivered his 14-page report with three recommendations at Monday’s Council meeting.

While councillors agreed to initially push to maintain Armidale’s independence, they effectively agreed to contingency plans should the NSW government force a merger with other councils in New England.

Earlier this week, Uralla Shire councillors also voted to keep their entity separate, although acknowleding such a move would inevitably lead to a rates hike and service cuts.

Mr Wilcox said although Armidale Dumaresq could prove it could “stand alone”, its neighbours “may not be able to meet the scale and capacity targets and will need to discuss with Armidale Dumaresq Council the options around a merger or amalgamation”.

Should that happen, Armidale Dumaresq ratepayers would be worse off  in the next 10 years, Mr Wilcox said.

“However, if the coordination of service delivery, legislative change and community backing occurs, the merger of councils across the New England could result in a strong administrative and regional group. The merger proposal today looks very bleak, but ... a strategic direction to meet long-term funding needs and the careful use of ... loans may deliver service levels beyond those of the smaller councils’ current capacity.”

All councils have until June 30 to submit their proposals for either merging or remaining independent to the state government.

Walcha has indicated it also wanted to remain independent.