... working with you to build a better future

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2 COROWA SHIRE... working with you to build a better future AMALGAMATION PROPOSAL Corowa Shire and Urana Shire

3 COROWA SHIRE...fit for the future Message from the Mayor Corowa Shire Council recognises the extensive work undertaken by the New South Wales Government in respect to Fit for the Future. Council, with the support of our community has been proactive in respect to participating in this program and supporting the recommendations made by the Independent Panel. Following the final report of the Independent Panel, which recommended a merger between Corowa and Urana Shire - the Councils of Corowa and Urana commenced working together to ensure the best outcomes for residents and ratepayers. However, Council is now perplexed as to the recent recommendation from the NSW Government of a three way merger proposal of Corowa, Urana and Lockhart Shire Councils. This recommendation to include Lockhart in a three way amalgamation does not reflect, nor was it considered as part of the large body of work commissioned by the NSW Government over the last four years. The recommendation undermines the extensive process of Fit for the Future along with the considerable time and resources Corowa Shire Council has invested in supporting this process. Our community is confident the NSW Government will respect the strong merit of this proposal and abandon the proposed three way merger of Corowa Urana and Lockhart Shires. Executive Summary This proposal is submitted by Corowa Shire Council under section 218E (1) of the NSW Local Government Act. The proposal is for an amalgamation of Corowa Shire Council and Urana Shire Council. There has been broad community support for this amalgamation on a voluntary basis and it is consistent with the recommendations made by the Independent Panel as part of the Fit for the Future program. Council has worked cooperatively to achieve the objectives of Fit for the Future. While the community would prefer to stand alone there is a strong appreciation for the need to be regionally responsible. This will allow a merger of the two Councils to be successfully implemented. There is no community support for an amalgamation which includes Lockhart Shire Council. A merger of Corowa and Urana Shire will achieve a much greater level of community benefit than the three way Council merger currently proposed by the NSW Government. This is evident through and estimated $41 million + in operational expenditure savings over a 20 year period and almost $2 million in annual operational savings from 2019/20. The communities of Corowa and Urana Shire generally have shared needs and priorities and share some community of interest. The community of interest between the two areas is sufficient to allow an effective model of governance for the new Council. We have worked closely with our community and cooperatively with the NSW Government to achieve the objectives of Fit for the Future. Corowa Shire Mayor Paul Miegel 2

4 AUGUST Calls for Local Government reform at the Destination 2036 conference. OCTOBER Final report released recommending Corowa Shire Council consider amalgamations with adjoining Councils or forming a Joint Organisation. JANUARY Council completes discussions with neighbouring Councils regarding possible amalgamations. FEBRUARY - MARCH Consultation to understand the community s vision for the future of Corowa Shire. MAY Public exhibition of Corowa Shire Fit for the Future proposal for 28 days. September NSW asks Council to submit further proposal and states that no funding will be received if a voluntary amalgamation is not reached. November Corowa and Urana Shire reach voluntary amalgamation agreement and this is submitted to NSW Government as required. January Corowa Shire community reject proposed 3 way amalgamation Commencement of NSW Government public Inquiry This timeline shows how Corowa Shire Council has responded to the NSW Government s Fit for the Future program requirements. MARCH NSW Government appoints the Independent Local Government Review Panel to review Council boundaries, operations and structures. SEPTEMBER NSW Government releases its Fit for the Future reform Package. FEBRUARY Council resolves to submit a standalone proposal, in light of neighbouring Councils position to pursue options that do not include possible amalgamations with Corowa Shire. MARCH - APRIL Council considers the preferred option for the future of Corowa Shire and prepares Fit for the Future proposal to NSW Government. 30 JUNE Council submit Fit for the Future proposal to the NSW Government. OCTOBER NSW Government assessment of all Fit for the Future submissions completed. December NSW Government announce 3 way proposed merger of Corowa, Urana and Lockhart Shires SEPTEMBER Local Government elections based on new Council boundaries - if applicable and as determined by the NSW Government.

5 COROWA SHIRE...fit for the future A new Council for the Corowa and Urana Shire Corowa Shire Council has worked closely with the community to determine views and support for an amalgamation. Council considered a range of amalgamation options and surveyed the whole of the community in respect to this. While there is a community preference to stand alone there is a strong sense of recognition and support for Council to be regionally responsible. This has resulted in the community supporting a voluntary amalgamation with Urana Shire Council. This proposal would more than double the land area of the existing Corowa Shire but would be less than a 10% increase in the existing Shire population. Given the extensive infrastructure the new Council would be responsible for, Council does not believe a merger with any further rural Council that also have low rates of population but high infrastructure needs would be the most sustainable model for the region. Corowa Shire already has an improvement program in place and believes a Fit for the Future model can be achieved for the new Council. What does Fit for the Future look like? sustainable strategic smarter right services right people right place focussed well planned and maintained community assets community leaders efficient New Council Profile Corowa Shire Council Urana Shire Council New Council Population (2014) 11,455 1,147 12,602 Area 2,329 sq km 3,356 sq km 5,685 sq km Operating Revenue ( ) $23.3m $8.4m $28,726m (projected ) Operating Result ( ) $2.7m $1.2m $3,585m (projected ) includes almost $2m projected improvements to operating result) Asset Base $242.2m $92.9m $334.1m Infrastructure Backlog 18% 12% 15% 4

6 Benefit, Opportunity and Impacts A merger of Corowa Shire and Urana Shire has the potential to reduce operational spending by in excess of $41 million over 20 years. This includes annual operational savings of almost $2 million from 2019/20. No savings have been calculated for the first three year period due to the initial increased cost of an amalgamation. It is assumed that the NSW Government will provide funds as indicated to support the cost of an amalgamation. Savings could be generated in the areas of: Information Technology and Innovation. Purchasing efficiencies. Employment expenses - staff efficiencies gained from duplicated roles or resource sharing. In particular Senior roles. Financial, accounting and audit expenses. Planning and Governance. Better utilisation of plant. This reduction in operational expenditure could be redirected to: Improved service levels. Reduction of infrastructure backlog. Downward pressure on rates. Tourism and economic development. Projected Operational Performance Ratio by Council and merged Council Corowa Urana Merged Base / / / / / / / / / / / /25 Improved Services and Infrastructure A program of organisational improvement has been in place in Corowa Shire for some time. This has allowed the Council to achieve significant financial and customer service gains over the last two years. Operational savings forecast from the proposed Corowa and Urana merger could support the achievement of key communities priorities which are broadly consistent for the two Shires. Key community priorities include: Swimming Pool refurbishments Foreshore and Lakeside developments Renewal of roads Renewal of footpaths Tourism and economic development Support for our ageing community and a focus on infrastructure and services to attract young families Investment in innovation and environmental outcomes such as a solar energy project for Urana 5

7 COROWA SHIRE...fit for the future Regulatory Benefits Council has a strong focus on working cooperatively with its community to facilitate positive outcomes. Council regularly reviews all processes to ensure a positive customer experience. This includes Council s regulatory functions which is demonstrated through Department of Planning statistics which show Corowa Shire approval times among the best in New South Wales. Council has implemented very few local orders and is accommodating in its interpretation of New South Wales Government regulation. Corowa Shire has a very supportive approach to enforcement actions (such as Companion Animals) to achieve positive outcomes that are appropriate for the individual and community. We are pleased that the Fit for the Future program has recognised the significant level of red tape within New South Wales Government. This Council is acutely aware of State Government complexities given its cross border location and has championed initiatives to understand and resolve issues experienced by businesses and community members. Health, building and planning officers are noted as a key area of skill shortage in regional Australia. This has forced Councils such as Urana Shire to employ contract labour as it is not economical to attract staff for a more limited volume of work. Corowa Shire resources align perfectly to support a joint merger with Urana Shire. Impact on Rates Corowa Shire Council has very low general rates. This stems from consideration of economic issues faced by our rural communities. In past years Council has had no annual rate increases or adopted only the minimum rate as set by the rate peg. Council was also one of the lowest rated Councils in NSW upon the introduction of rate pegging some 30 years ago. There are 152 Councils in New South Wales. Data is known for 151 Councils for the period ending 2012/13. Of these Councils, Corowa Shire is currently ranked as one of the lowest rated Councils in NSW when considering rates charged per rateable property (position 149 of 151). Urana Shire Council still sits in the lower half of rates charged per rateable property at position 93 of 151. Corowa Shire has worked closely with its community to determine the desires and priorities and if there is support for future rate increases to facilitate these (and at what level). An extensive community engagement program was undertaken which established support for rate increases. This has been the basis of special rate variations approved by IPART for Corowa Shire (a total annual general rate increase of 7% until 2017/18. A further increase was proposed with a strong level of community support to enable the Council to achieve community priorities under the Fit for the Future program. While the proposed savings from a Corowa/Urana merger could place downward pressure on rates, in particular for the communities of Urana Shire - Council believes that cost savings should be directed into the reduction of the infrastructure backlog. This is estimated to be more than $50 million for the new Council. Council currently maintains a strong focus on infrastructure renewal spending over asset expansion. This is shown within Council s Asset Management Plans. Asset modelling shows that higher levels of expenditure on the renewal of infrastructure will significantly decrease operational spending (maintenance and repairs) over the medium to longer term. This will in turn allow the Council to increase service levels and place downward pressure on rates in the future. Decisions in relation to future rate and service levels would need to be made by the new community and Council area. 66

8 Local Representation The quality and behaviours of elected representatives is the most important critical success factor for any Council. Corowa Shire has worked to maintain a respectful and innovative organisation. Council has achieved breakeven financial results and reductions in infrastructure backlog while maintaining some of the lowest rate levels in New South Wales. This is possible because the Council has experienced and dedicated management and Council works closely with staff to minimise red tape and to avoid waste. Councillors network closely with business and community to achieve improved local outcomes such as shared project delivery. It is suggested that the new Council have nine Councillors without wards. Councillors have always taken a whole of community view and decisions have been based on an understanding of overall priorities. Corowa Shire can demonstrate strong evidence of this through the high level of community engagement and representation achieved as part of the 2005 amalgamation of Howlong. There was no Councillor representation from the new area for a period of three years. Council formed and worked closely with a community representative committee. A high level of infrastructure and service improvements have been achieved for the Howlong community as a result of this. State and Federal Representation Both Corowa and Urana Shires have consistent representation in respect to local State and Federal representation. A newly formed Corowa and Urana Council will be supported by the Member for Albury (State) and Member for Farrer (Federal). Fit For the Future has stated that a key benefit of amalgamation will be to enable the new Council to be a more effective partner with the State and Federal Government. This proposal supports the need for clear lines of communication with local Federal and State members which will better enable a new Council with a Shire-wide commitment. Shared Services and Cooperation There is a range of shared community services and cooperation that exists between the communities of Corowa Shire and Urana Shire. In particular the Southern half of Urana (with Oaklands as the main centre) between Corowa and Mulwala. Examples of existing communities of interest currently in place include: RAMROC. Murray Local Land Services (Landcare Services). Murrumbidgee Local Health District. Riverina Regional Library. Murray Darling Basin Initiative. West Corrurgan Private Irrigation Scheme. Hume Leage Football/Netball (Howlong, Oaklands/Urana, Rand and CDHBU). High School (Corowa High School). Shopping (Corowa and Yarrawonga/Mulwala centres). Saleyards (Corowa). An amalgamation would enable further community benefit by encouraging additional services and cooperation from community service or business providers from the larger centres into the more rural/isolated areas of the new Shire. It would also strengthen community engagement between the current communities of Corowa and Urana Shire. Initiatives to support business and community growth through a greater level of cooperation between the two Shire s have already commenced. For example, Corowa Shire is home of some of the regions largest employers. Council has been working with business to facilitate additional investment and employment within the current Urana Shire. Community cooperation and connectedness is strong between Corowa and Urana Shire s. 7

9 COROWA SHIRE...fit for the future Shared Community Priorities The Corowa and Urana Shire area have commonalities in respect to the socio economic profile of the communities. SEIFA scores are below the NSW average, household income is significantly below the State average and the average age of the community is almost 10 years older than the State or National average. Agriculture is an important sector for both areas, however in Corowa Shire manufacturing and tourism are equally as important. The diversification and growth of the local economies are shared priorities. This will allow the new Council to be more effective in respect to planning by forming key strategies to address common priorities across the Shire. Conclusion The New South Wales Government has a rare opportunity to work with a community that will support an amalgamation between Corowa Shire and Urana Shire. Most Council s in NSW have opposed amalgamation. This support will ensure that the implementation of a new Council can achieve the best possible community outcomes. Benefits that could be achieved include: More than a $41 million reduction in operational spending over 20 years. An annual reduction in operational expenditure of almost $2 million from 2019/20. Reduced long term pressure on rate increases (in particular for Urana Shire residents). A strong focus and greater ability to reduce more than a $50 million infrastructure backlog. Greater level of capacity to implement key communities priorities in the longer term. Improved service levels and innovation through an ability to access highly skilled staff. Corowa Shire Council urges the Minister for Local Government to consider the strong merits of this voluntary merger proposal which is consistent with the recommendations made by the Independent Panel under the Fit for the Future Program. The proposal currently made by the NSW Government for a three way merger of Corowa, Urana and Lockhart is not in accordance with the recommendations or any investigations by the Independent Panel and undermines this extensive project commissioned by the Minister himself. 86