GISC Mayor Steve Toms said the funds had played an important role in the past to help council provide vital services and infrastructure for the community.

“The untied FAGs are an important part of our revenue base, from which we provide and maintain council’s local community infrastructure and services,” Cr Toms said.

“Council has a significant infrastructure backlog and any reduction in funding puts us further behind.”

According to a pre-budget submission from local government peak body the Australian Local Government Association, the Federal Government estimated that the three-year freeze on FAGs indexation introduced in the 2014-15 federal budget stripped nearly half a billion dollars from council revenues over the period up to 2017-18.

Cr Toms said the freeze had put a noticeable dent in council’s cash flow and impacted on the services in the Glen Innes community.

The estimated cost to council over this period has been marked at about $150,000.

“The Australian Government committed to restore indexation in this year’s federal budget and council and the community will hold them to their promise,” Cr Toms said.

“Politicians in Canberra must restore indexation of FAGs so that council can meet its community's demand for services and provide the level and quality of service that they deserve.”

The 2016-17 federal budget out-years signalled an expectation that annual indexation of FAGs would return from 2017-18.

But ALGA president David O'Loughlin said that “it does not completely guarantee an end to the freeze”. 

“We need certainty in the federal budget this May that indexation will be restored to FAGs and that our local councils will have the resources necessary to provide the level of services that every Australian community deserves,” he said.

Cr Toms has also written to Member for New England Barnaby Joyce on the matter.