Rate hike or administration - Mayor

Mayor Bourke was taking aim at a recent story in another regional newspaper in which former Corowa Shire councillor and a Federation Rates Group member Derek Schoen was scathing of Federation Council. Included in the mayor’s comments was reference to Professor Joesph Drew.

Professor Drew of the University of Newcastle has conducted an independent review of Federation Council and submitted a report with 77 recommendations.

A further review will be conducted by Professor Drew in July, regarding council’s long term financial plan. He will present SRV options.

“The ratepayers group wanted Professor Drew,” Mayor Bourke said. “The enquiry was very good. We thought we’d go with it – we’ve got nothing to hide so we’ll get Professor Drew.

“My colleagues elsewhere in Local Government tell me he’s the best in the world. I see this.

“Seventy-nine of NSW councils are trying to get Professor Drew. He deals with facts. I’m proud to say we are a good council. Our staff are doing a fantastic job.”

Mayor Bourke referred to the recently approved 48% rate increase (2 x 24%) over two years for Narrandera and said a few councils have gone into administration in recent times.

Mr Schoen asked what council’s reaction would be if Professor Drew recommended an overall 50% or if he recommended 100% rate increases in future budgets.

“That would be up to council to decide,” answered deputy general manager and chief financial officer Jo Shannon who spoke for one hour explaining the 2024-25 budget and associated documentation.

Mr Schoen said he disagreed with the mayor “on many things” but expressed alarm at the possibility of the shire having an administrator because “the community will have no input at all”.

For 2024-25, Federation Council is proposing to deliver a $54.8 million operating program and a $19.23 million Capital Works Program.

Council is budgeting for $51.67 in operating income, an increase of $5.39 million or 12% on 2023-24 budgeted income. It includes the 17% SRV and expected increases to Financial Assistance Grants.

Council is budgeting to spend $54.78 million in operating expenditure for 2024-25, an increase of $3.47 million or 7% on 2023-24. Increased expenditures include additional planning and building staff, conducting the September 2024 local government election, additional depreciation due to additional assets such as the Corowa Saleyards upgrade and award increases for payments to staff and superannuation guarantee contribution.

Council’s rates plan models the financial impact of delivering current services with some minor reductions, renewing assets in accordance with its strategic assets management plan and a cumulative 80% increase to general rates over two years (50% in 2025-26, effectively including the temporary 19% and 17% SRV increases), 20% in 2026-27 and 10% in 2027-28 to provide “a financially sustainable solution” for the 10 years of its long-term plan.

Rates and Professor Drew

Following the mayor’s emphasis on the necessity for the proposed SRVs, deputy mayor Shaun Whitechurch said he understands about rate increases and the hardship many, especially pensioners, can experience.

“Rates don’t generate anywhere near enough income for council,” he said. “As a council, we want to make communities get better. I take comfort in what Professor Drew said about us in that it’s (council) a big ship but we’re heading in the right direction.”

Considerable discussion took place about Professor Drew. Mulwala resident and former Corowa Shire councillor Peter Seeliger wondered why Professor Drew was engaged when council has “credible executives to do it instead of Professor Drew”.

Ms Shannon, who has a strong financial background in local and state government, had no qualms about the professor’s involvement, saying it does not hurt to get an outside opinion of someone so highly regarded as Professor Drew, “to hear from an academic”.

“It was interesting. It speeded up the progress we can make,” she added.

Mulwala Progress Association President Robert Purtle OAM said he spoke to Professor Drew for 45 minutes last week.

“Professor Drew was against the amalgamation (or Corowa and Urana Shires, to form Federation Council) and said if residents in Federation Council do not support the SRVs the shire could be like three or four other shires in NSW and be put in the hands of Administrators,” Mr Purtle said. “He’s a very interesting character.”

Set to be reviewed

Among matters set to be further reviewed by Federation Council before final adoption of its 2024-25 budget are its hardship policy regarding the paying of rates and the proposed wiping out of the annual $60,000 in small community grants, resulting in a saving of $600,000 to council over a decade.

Council’s small community grants are for up to and including $3,000 and very much welcomed by recipients. Savernake resident Ken Bruce described council’s intention as “very sad, shortsighted and a soft target”.

Volunteers look after Savernake Hall, Mr Bruce said, and volunteers who put so much effort into maintaining the hall and surrounds don’t ask for much and the grant is something very much looked forward to.

Mayor Bourke praised the work of those and all volunteers throughout the Federation Council area and acknowledged the small grants justifies a review.

Council’s General Manager Adrian Butler sympathised with Mr Bruce. “I encourage you to make a submission,” the General Manager said. Submissions from the public can only assist accordingly.

Further meetings/submissions

Public meetings have been held in Corowa, Urana and Mulwala, and the last public meeting is at Howlong tonight, Wednesday, May 22.

Drop In Sessions will resume next week in the same towns – see Federation Snippets for details.

Submissions can be emailed to council@federationcouncil.nsw.gov.au or complete a feedback form in any council office in Corowa, Howlong, Mulwala and Urana, or send in feedback to PO Box 77, Corowa, NSW 2646. Phone (02) 6033 8999 for enquiries.