Cr Tucker said professional firm KPMG Australia would be undertaking a feasibility study into boundary adjustments in Break O’Day, Glamorgan Spring Bay, and Sorell.

He said a possible outcome would be for Break O’Day and Sorell to each take over half of the Glamorgan Spring Bay area.

“Because the distance (Glamorgan Spring Bay) is so great, and the population put together is quite small, considering the size of the municipality, that’s where we come from with the idea of splitting it in half,” he said.

He said any boundary adjustment would have to be beneficial to the ratepayers and council.

In August, TasWater unveiled a plan to remove all permanent boil water alerts over a two-year period, resulting in $150 million in payments reduced to councils over a 10-year period.

Cr Tucker said TasWater’s plan would result in a loss of approximately $200,000 per year for the council – which would not be passed onto the ratepayers when it kicks in during the 2017/18 financial year.

He said the council would look at back office savings to recoup the loss, and raising rates would not be contingent upon the outcome of boundary adjustments.

However, he conceded the $200,000 per year shortfall could affect the council’s ability to finance community groups through grants.

In August, Local Government Minister Peter Gutwein said councils could deal with decreased revenue through resource sharing and voluntary amalgamations.

Mr Gutwein also recently unveiled a $60 million loan scheme to encourage councils to bring forth infrastructure projects. 

Cr Tucker said the council had for some time participated in resource sharing, including purchasing gravel from the Dorset Council.  

Glamorgan Spring Bay mayor Michael Kent said an amalgamation would have to benefit the ratepayers of the area.

Sorell Council mayor said he would look at the plan after the study is finished.