Federation Council's future is in the spotlight as councillors prepare to vote on a $130,000 "health check" for the merged shire at an extraordinary meeting.
Subscribe now for unlimited access.
or signup to continue reading
Councillors will meet on Friday, June 9, to have their say on Cr David Fahey's notice of motion, which recommends that the council "engage a consultant to undertake an independent peer reviewed business case study on the financial sustainability of Federation Council and the advantages/disadvantages of amalgamation".
Federation Council, which was formed in 2016 when Corowa and Urana shires combined, would be following in the footsteps of another merged entity if Friday's vote gets up.
Snowy Valleys Council, created when Tumbarumba and Tumut shires merged, has already commissioned a report into the success of the venture, with the academic behind it finding that forced council amalgamations have been a complete failure and have cost ratepayers money.
University of Newcastle local government economics professor Joseph Drew, who has been flagged by Cr Fahey as one of three candidates to conduct the report into Federation Council, said forced mergers had failed to reduce costs for ratepayers, despite the NSW government promising that in 2016.
Federation Council's extraordinary meeting comes as Cootamundra-Gundagai prepares to demerge before next year's state election.
Mayor Pat Bourke acknowledged there would be ratepayers who were upset at the estimated $130,000 price tag of the business case at the same time as the council bids to lift rates by 74.59 per cent over four years.
Cr Bourke said while "I don't think people are marching the streets calling for us to demerge, it's a great way for us to conduct a health check seven years into the merger".
"When the merger happened, I was obviously at Urana, and we were an anti-merger council," he said.
"We didn't see the savings that the state government said were going to be there, but our attitude was that we were going to make the best of this in Federation that we can, and I believe we have done that.
"We have absolutely nothing to hide.
"We're not going into this to demerge, we're going into it to be open, transparent and responsible to the communities. The report might come back and give us a smack in the face."
The chairman of Federation Council's rates advisory committee Derek Schoen welcomed the prospect of an independent report on the advantages and disadvantages of demerging.
Mr Schoen cited a recent story in The Border Mail where $100,000 had been budgeted for a dog park at disused grass tennis courts at Corowa's Ball Park which he said could be done for $15,000.
"There definitely needs to be a review of council and how it uses funds," he said.
"A lot of funds have not been spent wisely."
Cr Bourke said if Friday's vote got up, he hoped a report from Professor Drew, along with Professor Masato Miyazaki from Saitama University, Japan, and Professor Diogo Ferreira from IST Portugal, could be completed by Christmas and included in this year's budget.
"We don't think there's any better way to show our attitude than having this review," Cr Bourke said.
"We think it's a responsible thing to do, to do our due diligence.
"It will graph us against other merged councils.
"We think it will put a lot of pieces of the puzzle together."
Cr Bourke's comments come after the Independent Pricing and Regulatory Tribunal received 259 responses after calling for feedback on Federation Council's special rate variation application.
A decision by IPART is expected this month but in his notice of motion, Cr Fahey said the "health check" made good business sense which ever way the ruling fell.
"With the anticipated SRV (special rate variation) result, whatever the result may be, I believe it would be good practice to look into the council business and make sure council is on track for the future," Cr Fahey wrote.
"This is more than a mere review of the amalgamation. It is a health check for council to consider its options if the SRV is approved or not approved and what options are available."
Upon being commissioned by Snowy Valleys Council, Professor Drew said "my approach is to lay out the facts, the pros and cons of both sides and I will suggest what I think is in the best interest of your community based on robust, independent, world's best work".
After Professor Drew's report was handed down, Snowy Valleys mayor Ian Chaffey said, in hindsight, the decision to merge the two shires was "naive in the extreme" and had caused discontent among the two communities.
Snowy Valleys councillors will vote on their next steps at the June 22 meeting, where Cr Chaffey expects they will start the demerger process.
IN THE NEWS:
- From jabs to slabs: Back for seconds, Dan Murphy's in fresh city move
- TV chef on the hunt for the perfect plate in visit to Riverina clubs
- So often, players say hitting the weights helps, but a Tiger eased back
- Wodonga police seek help to find Bonnie McWaters on warrants
- Dealer had ice in her supermarket bag, along with a selection of stolen chocolate
To read more stories, download The Border Mail news app in the Apple Store or Google Play.
Our journalists work hard to provide local, up-to-date news to the community. This is how you can continue to access our trusted content:
- Bookmark https://www.bordermail.com.au/
- Make sure you are signed up for our breaking and regular headlines newsletters
- Follow us on Twitter: @bordermail
- Follow us on Instagram @bordermail
- Follow us on Google News