The New South Wales Government has poured $1 billion into its local government sector.

The ‘Fit for the Future’ package contains a variety of funding options that councils can access to establish or improve services for the coming years.

“We are committed to Rebuilding NSW and to achieve this we need a strong local government sector”, NSW Premier Mike Baird said.

“However this is not possible when more than one-third of the State’s councils are facing financial problems - losing more than $1 million a day.”

“This package puts ratepayers first, so councils deliver better roads, footpaths and sporting fields.”

The Fit for the Future package includes:

$258 million to assist councils who decide to merge and make the changes needed to provide better services to communities;

Cheaper finance for councils to build and maintain necessary community facilities, saving them up to $600 million;

Up to $100 million savings through reduced red tape and duplication;

Improvements to the local government system, including the laws that govern it, the way the State works with councils and the support that councils receive.

The funding options are based on the Independent Local Government Review Panel’s recommendations following three years of research and consultation.

Councils will have until 30 June 2015 to submit proposals.