The successful councils, which will now receive a funding boost to assist with the local government reform process, were the alliance of Central NSW councils (Centroc), Hunter, Illawarra, Namoi and Riverina.

Nambucca Shire mayor Rhonda Hoban said she was surprised by the outcome.

“I expected the pilot would have included at least one council in the northern region,” Cr Hoban told the Guardian.

“Coastal councils have unique issues such as timber bridges, which in terms of financial sustainability, can’t be overlooked.”

Cr Hoban said if she were being cynical, it appeared councils were chosen based on their chance of financial success.

“I sincerely hope the pilot is successful but this is no help to our coastal councils.”

Surprising also was the low key nature of the announcement, given the high profile the reform process had been given so far.

Cr Hoban said she also noticed a slight shift in the shape of the changes.

“Previously the Government had been talking about JOs in some areas and amalgamations in others - in the documents we received it states that ‘all councils outside Greater Sydney will be member of a joint organisation by 2016’ ... so what are we meant to do in the meantime?

“The pilot councils get the funds and we are left to do our own thing.”

She said the MIDROC (Mid North Coast Regional Organisation of Councils) would meet tomorrow and discuss ‘where to from here’.

“We have already resolved that we are keen to work towards an RJO provided it works in such a way that it is sustainable and better value for ratepayers.

“No one seems to be seriously talking about the sustainability aspect.”

Centroc chair and mayor of Parkes, Ken Keith, said being a pilot RJO was a golden opportunity to take a proactive role in strong local government reform.

“This provides us with sustainability and strength of numbers yet allows us to retain our sense of community, regional identities and local representations,” Cr Keith said.

“Joint organisations are not amalgamations; they are a league of councils.”