Residents in a small country town are upset at their local council for telling them to pay up to $4,000 each for a new cycleway, not long after the project was granted almost $1 million dollars in government funding.
Upper Hunter Shire Council wants to build a 4km cycleway and walkway in Merriwa, it says, to attract tourists.
Local resident Shaen Morgan said she thought it was a great idea for the town at first, but her opinion soured when she got a council notice in the mail, saying she was required to contribute $1,767 towards the cycleway.
"We've been landed with this bill and we knew nothing about it," she said.
The letters were received by 25 residents who live along the proposed cycleway route, and the contribution amount varies depending on the size of their property.
Under the Roads Act, councils can charge higher rates to landholders to help raise money to cover costs to build or fix roads and footpaths on the streets where they live.
However, residents are questioning why the council has resorted to the measure when the project received $922,674 from the Bushfire Local Economic Recovery Fund program last July.
The funding is jointly provided by the NSW and federal governments.
"Their grant should have covered it, and if it didn't, well, something's gone horribly wrong there," Ms Morgan said.
'We need to work within our means', council says
The council is defending the use of the policy to raise funds from landholders for the project.
In the letters to the residents, the council explained that each household must cover the cost of 47.5 per cent of the works completed along the front of their property.
Council said it would pay for the rest, and also cover the cost of making the path 0.8m wider than planned.
Residents are not being asked to pay the full amount in a lump sum, it will instead be broken up and spread across their rates bills over the next five years.
The contribution amount is capped at $4,000, and nine households will be charged the maximum amount.
Cheryl Dallimore and her husband, John, said Merriwa was home to plenty of retirees on a tight budget.
"We're both pensioners; we retired five years ago. So the pension is all the income that we have," she said.
"Naturally, we're a bit worried about having to pay that money."
The Dallimores have a 20-metre property frontage on the cycle route, and Mr Dallimore said it would be fairer if the rate rises were spread out to everyone in town of around 2,000 residents.
The council said the project would provide benefits around safety and tourism and would connect to points of interest in the town including playgrounds and the town silos.
"We all want safe, functional infrastructure, but we need to work within our means," the council said in a statement.
Angst and division over cycleway
Pharmacist Rob Smith is a cycling enthusiast who organises the annual cycling event, Le Tour De Merriwa.
"This is a project that I've pushed and driven for," he said.
"I have been out to Walcha, Uralla, Walgett and Lightning Ridge. All these towns have installed similar cycleways.
"And they've somehow found a way to do it without charging individual residents more."
Mr Smith is concerned that the contribution notices for the cycleway from the council have caused division in the community.
"I understand they're in a tough position. Money doesn't grow on trees," he said.
Ms Morgan was worried the issue would "drag on and on for a very long time".
"If everyone had to contribute it would be a lot less money, but I'd say there would be people who wouldn't be happy with that either," she said.
Resident wants answers around funding
When the council held its first meeting a few days after being awarded the grant on July 26, 2021, it was stated in its agenda that council had to provide a $60,000 co-contribution amount under the terms of the funding.
Councillors then voted to ask residents for contributions to raise this amount, after it was stated they had not budgeted for the $60,000 in that financial year.
When asked why the amount was not budgeted for, the council told the ABC it had added the $60,000 from its budget reserves during its budgeting process over the past two months.
Ms Morgan hoped more residents would speak out about the issue and put pressure on the council to change the policy.
"It will be great for the town and for families, but I just think that the way it's unfolding, it's not looking good for the ratepayers or for council," she said.
"The sooner it's done the better, but I just don't want to have to pay for it."