The Democracy for Rye group have been called on to aplogise to the public for making misleading election promises.
Election literature claimed that Rye could take over services from Rother, including planning and car parks, at no extra cost to tax payers.
They have now admitted this is not the case after a working group explored the costs and found that it co
uld not be done without raising council tax.
At last week's full council meeting Rye county councillor Keith Glazier challenged the group and said: "Will you comment on exaggerated claims made about taking over services at no extra cost?"
Group leader Cllr Granville Bantick said; "There will be a statement at a later date."
Rye Mayor Sam Souster said: "You should apologise for making promises to the public when there is no chance of delivering."
Cllr Bantick responded: "I will reserve comment on that."
Cllr Souster sad: "Investigations carried out by the devolved services working group suggest it would be a financial disaster for the Town Council to take over running all services."
Rother spends a total of £712,467 in Rye and receives £328,834 of income, for services provided.
The balance remaining is paid by all Rother Council tax payers – with the exception of the £40,970 Rye Special Expense which is paid by Rye tax payers only.
Although Rye's car parks generate surplus income of £145,053, this is effectively cancelled out by the Rye Sports Centre and Swimming Pool operating deficit of £190,192.
The burden of any increase in costs would fall on the Rye local tax paper rather than be spread across the District's tax payers.
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