Snowy Valleys mayor Ian Chaffey calls decision to merge Tumut and Tumbarumba Shires 'naive in the extreme'

University of Newcastle local government economics professor Joseph Drew this week delivered a report for the Riverina council outlining a business case for the de-amalgamation of the merged Tumut and Tumbarumba shires, and with it delivered a withering assessment of the widespread amalgamations across NSW.

"We were told that the reason was to make councils more financially sustainable. In fact, the program was called Fit for the Future as in financially fit for the future ... cost didn't go down at all. They went up on average by just over 11 per cent," he told The Daily Advertiser.

"In terms of the financial sustainability and efficiency, there can be no doubt ... that it failed to achieve those objectives."

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Mr Drew's report concludes with "the firm belief of the three internationally recognised professors" that "Snowy Valleys Council should be de-amalgamated as quickly as possible".

"Moreover, the continued risk posed to the mental and physical well-being of staff, representatives, and the community - arising from the unsuitable configuration of the local government area - demands urgent redress."

Snowy Valleys mayor Ian Chaffey said in hindsight the decision to merge the two shires was "naive in the extreme", has had a huge effect on the mental health of council staff and caused discontent among the two communities.

Councillors will vote on their next steps at the June 22 meeting and Cr Chaffey expects they will vote to start the de-merger process.

Twelve Riverina councils were merged in recent years, including Tumut and Tumbarumba, and Mr Drew said those councils experienced rate increases further highlighting the failure of the program.

"We weren't promised those tax increases, we were promised downward pressure on rates, which was actually one of the dot points in the minister's marketing material. And yet we all got tax increases instead," he said.

"What makes me cranky about the whole thing is that this was entirely avoidable."

Responding to questions from The Daily Advertiser, Local Government NSW, the peak body for NSW councils, said: " LGNSW will not be commenting on this matter."

A spokesperson for the Office of Local Government told The Daily Advertiser that the ball is now in SVC's court.

"The business case has been prepared for Snowy Valleys Council to make a decision on whether it wants to seek a demerger and it is a matter for the council to determine whether to proceed with the proposal," they said.

"Any de-merger proposal received by the government would be considered on its own merits, in line with provisions in the Local Government Act."

It comes less than a year after the previous NSW government announced the decision to de-merge Cootamundra-Gundagai Regional Council.

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