Council seeks sustainable future for Ball Park

A more financially sustainable solution is being sought for Federation Council’s two caravan parks, following the independent review by Professor Joseph Drew.

Much talk at council’s monthly meeting on April 30 centred around Ball Park Caravan Park in which Professor Drew recommended the park “be divested to relieve the pressure on overstretched staff, eliminate distractions from core service provision, reduce local economic distortion and better manage risk”.

Council has resolved to seek an industry specialist consultant to conduct a feasibility study and market approach (EOI) for operation as a public private partnership under a long-term lease (subject to Minister approval if leasing Crown Land over 25 years), with a suitable capital contribution framework.

Council is to consider opportunities for Urana Caravan Park to benefit from a market approach in the longer term.

Council will also engage suitable resourcing to manage the process of seeking private sector investment into Ball Park Caravan Park utilising existing funds in the grants operational budget.

Federation Council operates two caravan parks – Ball Park Caravan Park in Corowa and the Urana Caravan Park. Ball Park Caravan Park is on Crown Land under the trust management of council whilst the Urana Caravan Park is council freehold land, however the surrounding Aquatic Centre (Lake and Creek) and adjoining J.M Smith Nature reserve is on Crown Land under the trust management of council.

Council commenced direct operation of Ball Park Caravan Park in 2018 via short-term management contracts. Council’s financial position has deteriorated with operating expenditures exceeding operating revenues from July 1, 2019.

The required removal of 189 annual site holders due to non-compliance removed $540,000 of income.

The loss of this income combined with still having fixed operation costs of the park around $500,000 annually, combined with a reduced footprint for the park, can’t break even.

At the current time a considerable financial subsidy (i.e. an operational loss borne by the General Fund of Council) is provided to fund direct costs associated with operating the park. In addition, there are various indirect operating costs that are not currently allocated to the service unit.

Revenue from the Urana Caravan Park covers the directly allocated operating costs however there is a subsidy provided to fund indirect operating costs. Indirect operating costs are incurred across both caravan parks, in areas such as staff time involved in overseeing the management contracts, financial management, information technology, communication and marketing support, and maintenance and capital works on the parks.

“While operating a caravan park can offer financial and social benefits for a council, it also requires careful planning, resource allocation, and ongoing management to ensure its success and sustainability,” council’s deputy general manager and chief financial officer Jo Shannon said for council’s monthly meeting on April 30.

Ms Shannon stated the many advantages and disadvantages in operating a caravan park for a council.

“Many of these disadvantages are acutely impacted by council’s current financial position. Council’s relatively low levels of unrestricted cash means that Council is unable to invest the capital required to address ageing infrastructure within Ball Park Caravan Park,” she said.

The financial impact on Federation Council of the Ball Park Caravan Park operations has been varied due to the nature of the lease or management arrangements, initial purchase of the cabins in the park, significant compliance work including tree removal/pruning, the impact of events such as COVID-19 and recent flooding.

Councillors and General Manager Adrian Butler expressed their praise of the current management running the parks and their delight at the motion put by Crs Rowena Black and Gail Law.

“The community will be looking forward to some positive outcomes,” Cr Black said. “To have Ball Park running efficiently again will bring economies to the town and the wider community, and to the external operator.”

Some councillors wondered about the consultant to be selected and to who might run a park. Mayor Pat Bourke posed that sentiment but said he was looking forward to the EOI process.

“It’s a great opportunity for someone,” the mayor said. “We want the community to get the economic benefit, and at Urana as well.”

Councillors voted unanimously for their actions proposed. Cr Longley wasn’t thrilled it could take six months for a consultant to complete the task when he knows of one organisation in town keen to take over its management. General Manager Adrian Butler said the task would not be “consultant’s junket”.

Deputy mayor Shaun Whitechurch said people might wonder why Ball Park has been desolate and he explained the background, as per the aforementioned varied operations. “It’s been a long and thorough process to get to this position to properly move forward,” he said.