COROWA SHIRE ... working with you to build a better future

AMALGAMATION PROPOSAL

Corowa Shire and Shire www.corowa.nsw.gov.au COROWA SHIRE ...fit for the future

Message from the Mayor

Corowa Shire Council recognises the extensive work Executive Summary undertaken by the Government in This proposal is submitted by Corowa Shire Council under respect to ‘Fit for the Future’. section 218E (1) of the NSW Local Government Act. Council, with the support of our community has been The proposal is for an amalgamation of Corowa Shire proactive in respect to participating in this program and Council and Council. supporting the recommendations made by the Inde- pendent Panel. There has been broad community support for this amalgamation on a voluntary basis and it is consistent with Following the final report of the Independent Panel, the recommendations made by the Independent Panel as which recommended a merger between Corowa and part of the ‘Fit for the Future’ program. Urana Shire - the Councils of Corowa and Urana commenced working together to ensure the best Council has worked cooperatively to achieve the objectives outcomes for residents and ratepayers. of ‘Fit for the Future.’ However, Council is now perplexed as to the recent While the community would prefer to stand alone there is recommendation from the NSW Government of a three a strong appreciation for the need to be regionally respon- way merger proposal of Corowa, Urana and sible. Councils.

This will allow a merger of the two Councils to be This recommendation to include Lockhart in a three way successfully implemented. There is no community support amalgamation does not reflect, nor was it considered as for an amalgamation which includes Lockhart Shire part of the large body of work commissioned by the NSW Council. Government over the last four years.

A merger of Corowa and Urana Shire will achieve a much The recommendation undermines the extensive process greater level of community benefit than the three way of ‘Fit for the Future’ along with the considerable time Council merger currently proposed by the NSW and resources Corowa Shire Council has invested in Government. supporting this process.

This is evident through and estimated $41 million + in Our community is confident the NSW Government will operational expenditure savings over a 20 year period respect the strong merit of this proposal and abandon and almost $2 million in annual operational savings from the proposed three way merger of Corowa Urana and 2019/20. Lockhart Shires.

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 This timeline shows how 2011 Corowa Shire Council has responded to the AUGUST 2011 - Calls for Local NSW Government’s ‘Fit Government reform at the for the Future’ program Destination 2036 conference. requirements. 2012 MARCH 2012 - NSW Government appoints the Independent Local Government Review Panel to review Council boundaries, operations and structures. 2013 OCTOBER 2013 - Final report released recommending Corowa Shire Council consider amalgamations with adjoining Councils or forming a Joint Organisation. 2014

SEPTEMBER 2014 - NSW Government releases its ‘Fit for the Future’ reform Package.

JANUARY 2015 - Council completes discussions with 2015 FEBRUARY 2015 - Council neighbouring Councils regarding resolves to submit a standalone proposal, in light of neighbouring possible amalgamations. Councils position to pursue options that do not include FEBRUARY - MARCH 2015 - possible amalgamations with Consultation to understand the Corowa Shire. community’s vision for the future of Corowa Shire. MARCH - APRIL 2015 - Council considers the preferred option MAY 2015 - Public exhibition of for the future of Corowa Shire Corowa Shire ‘Fit for the Future’ and prepares ‘Fit for the Future’ proposal for 28 days. proposal to NSW Government.

30 JUNE 2015 - Council submit ‘Fit September 2015 - NSW asks for the Future’ proposal to the NSW Council to submit further proposal Government. and states that no funding will be received if a voluntary OCTOBER 2015 - NSW amalgamation is not reached. Government assessment of all ‘Fit for the Future’ submissions completed. November 2015 - Corowa and Urana Shire reach voluntary amalgamation agreement and this December 2015 - NSW is submitted to NSW Government Government announce 3 way as required. proposed merger of Corowa, Urana 2016 and Lockhart Shires

January 2016 - • Corowa Shire community reject SEPTEMBER 2016 - Local proposed 3 way amalgamation Government elections based • Commencement of NSW on new Council boundaries - if Government public Inquiry 3 applicable and as determined by the NSW Government. 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?

right services sustainable smarter right people strategic right place

well planned and maintained focussed community community assets 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 (2013 - 2014) (projected 2019-20)

Operating Result $2.7m $1.2m $3,585m (2013 - 2014) (projected 2019-20) includes almost $2m projected improvements to operating result) Asset Base $242.2m $92.9m $334.1m

Infrastructure Back- 18% 12% 15% log

4 Benefit, Opportunity and Impacts

A merger of Corowa Shire and Urana Shire has the potential duplicated roles or resource sharing. In particular Senior to reduce operational spending by in excess of $41 million roles. over 20 years. This includes annual operational savings of • Financial, accounting and audit expenses. almost $2 million from 2019/20. No savings have been • Planning and Governance. calculated for the first three year period due to the initial • Better utilisation of plant. increased cost of an amalgamation. It is assumed that the NSW Government will provide funds as indicated to support This reduction in operational expenditure could be the cost of an amalgamation. redirected to: • Improved service levels. Savings could be generated in the areas of: • Reduction of infrastructure backlog. • Information Technology and Innovation. • Downward pressure on rates. • Purchasing efficiencies. • Tourism and economic development. • Employment expenses - staff efficiencies gained from

Projected Operational Performance Ratio by Council and merged Council

0.25

0.2

0.15

0.1

Corowa 0.05 Urana 0 Merged Base -0.05

-0.1

-0.15

-0.2 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25

Improved Services and Infrastructure

A program of organisational improvement has been Key community priorities include: in place in Corowa Shire for some time. This has • Swimming Pool refurbishments allowed the Council to achieve significant financial and customer service gains over the last two years. • Foreshore and Lakeside developments Operational savings forecast from the proposed • Renewal of roads Corowa and Urana merger could support the • Renewal of footpaths achievement of key communities priorities which are broadly consistent for the two Shires. • 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 COROWA SHIRE ...fit for the future

Regulatory Benefits

Council has a strong focus on working We are pleased that the ‘Fit for the Future’ cooperatively with its community to facilitate program has recognised the significant level of positive outcomes. ‘red tape’ within New South Wales Government. Council regularly reviews all processes to ensure This Council is acutely aware of State Government a positive customer experience. complexities given its cross border location and has championed initiatives to understand and This includes Council’s regulatory functions resolve issues experienced by businesses and which is demonstrated through Department of community members. Planning statistics which show Corowa Shire approval times among the best in New South Health, building and planning officers are noted Wales. as a key area of skill shortage in regional . This has forced Councils such as Urana Shire to Council has implemented very few local orders employ contract labour as it is not economical to and is accommodating in its interpretation of attract staff for a more limited volume of work. New South Wales Government regulation. Corowa Shire resources align perfectly to support Corowa Shire has a very supportive approach a joint merger with Urana Shire. to enforcement actions (such as Companion

Animals) to achieve positive outcomes that are appropriate for the individual and community.

Impact on Rates

Corowa Shire Council has very low general rates. general rate increase of 7% until 2017/18. This stems from consideration of economic issues A further increase was proposed with a strong faced by our rural communities. level of community support to enable the Council In past years Council has had no annual rate to achieve community priorities under the ‘Fit for increases or adopted only the minimum rate as set the Future’ program. by the rate peg. While the proposed savings from a Corowa/Urana Council was also one of the lowest rated Councils merger could place downward pressure on rates, in NSW upon the introduction of rate pegging in particular for the communities of Urana Shire some 30 years ago. - Council believes that cost savings should be directed into the reduction of the infrastructure There are 152 Councils in New South Wales. Data backlog. This is estimated to be more than $50 is known for 151 Councils for the period ending million for the new Council. 2012/13 . Council currently maintains a strong focus on Of these Councils, Corowa Shire is currently infrastructure renewal spending over asset ranked as one of the lowest rated Councils expansion. This is shown within Council’s Asset in NSW when considering rates charged per Management Plans. rateable property (position 149 of 151). Asset modelling shows that higher levels of Urana Shire Council still sits in the lower half of expenditure on the renewal of infrastructure rates charged per rateable property at position 93 will significantly decrease operational spending of 151. (maintenance and repairs) over the medium to Corowa Shire has worked closely with its longer term. This will in turn allow the Council community to determine the desires and priorities to increase service levels and place downward and if there is support for future rate increases to pressure on rates in the future. facilitate these (and at what level). An extensive Decisions in relation to future rate and service community engagement program was undertaken levels would need to be made by the new which established support for rate increases. community and Council area. This has been the basis of special rate variations approved by IPART for Corowa Shire (a total annual

66 Local Representation

The quality and behaviours of elected representatives is the most important critical success factor for any Council. A high level of infrastructure and service improvements Corowa Shire has worked to maintain a respectful and have been achieved for the community as a result innovative organisation. Council has achieved breakeven of this. financial results and reductions in infrastructure backlog while maintaining some of the lowest rate levels in New State and Federal Representation South Wales. Both Corowa and Urana Shires have consistent representation in respect to local State and Federal This is possible because the Council has experienced and representation. dedicated management and Council works closely with A newly formed Corowa and Urana Council will be supported staff to minimise red tape and to avoid waste. Councillors by the Member for Albury (State) and Member for Farrer network closely with business and community to achieve (Federal). improved local outcomes such as shared project delivery. ‘Fit For the Future’ has stated that a key benefit of It is suggested that the new Council have nine Councillors amalgamation will be to enable the new Council to be without wards. Councillors have always taken a ‘whole of a more effective partner with the State and Federal community’ view and decisions have been based on an Government. This proposal supports the need for clear lines understanding of overall priorities. of communication with local Federal and State members which will better enable a new Council with a Shire-wide Corowa Shire can demonstrate strong evidence of this commitment. 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.

Shared Services and Cooperation

There is a range of shared community services and An amalgamation would enable further community benefit cooperation that exists between the communities of Corowa by encouraging additional services and cooperation from Shire and Urana Shire. In particular the Southern half of community service or business providers from the larger Urana (with Oaklands as the main centre) between Corowa centres into the more rural/isolated areas of the new Shire. and . It would also strengthen community engagement between Examples of existing communities of interest currently in the current communities of Corowa and Urana Shire. place include: • RAMROC. Initiatives to support business and community growth • Murray Local Land Services (Landcare Services). through a greater level of cooperation between the two • Murrumbidgee Local Health District. Shire’s have already commenced. • Regional Library. • Murray Darling Basin Initiative. For example, Corowa Shire is home of some of the regions • West Corrurgan Private Irrigation Scheme. largest employers. Council has been working with business • Hume Leage Football/Netball (Howlong, Oaklands/Urana, to facilitate additional investment and employment within Rand and CDHBU). the current Urana Shire. • High School (Corowa High School). • Shopping (Corowa and Yarrawonga/Mulwala centres). • Saleyards (Corowa).

Community cooperation and connectedness is strong between Corowa and Urana Shire’s.

7 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 impor- tant. 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 priori- ties 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.

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