The West Australian Local Government Association says forced mergers will cost councils from $4.1 to $7.2 million per amalgamation, and the State should step in to help.

Some warn that rates will have to rise if councils are made to wear the cost of reform, after the West Australia Government confirmed it would only offer up to $15 million in grants and $45 million in low-interest loans for assistance.

Mayors from across the state say their limited funds mean ratepayers will be forced to help repay the loan.

WALGA President Mayor Troy Pickard said the State Government had failed to respond to the sector’s repeated calls to properly assess the true cost of reform.

“The Government’s assertion that it is providing $60 million for the reform process needs to be tempered with the reality that most of this amount is in the form of loans,” Mayor Pickard said.

“The two per cent subsidy on interest being offered by the Government is trivial. These loans will still need to be repaid by affected communities.”

WALGA’s 2014 annual survey found 70 per cent of the community expected the State Government to fully fund the reform process.

“In spite of overwhelming evidence to the contrary, the State Government has taken the decision not to increase funding,” Mayor Pickard said.

“It therefore needs to accept complete responsibility for its decision in the likely event that the funding is proven to be inadequate and places additional burdens on the community.

He said the savings estimated by the State Government would largely be the result of reduced governance and senior staff salary costs.

Due to the nature of the contracts though, these benefits would not be realised for at least two years, and more than likely be reallocated to additional community services.