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Merger Proposal: ARMIDALE DUMARESQ COUNCIL GUYRA SHIRE COUNCIL URALLA SHIRE COUNCIL WALCHA COUNCIL

APRIL 2016

COMMUNITY INFORMATION

1. INTRODUCTION

The NSW Government through its Local Government ‘Fit for the Future’ reform process announced 35 merger proposals in December 2015. This announcement came after a number of costly reviews, and at a time when there was not expected to be any forced mergers.

In alignment with the intent of the NSW Government’s reforms and following public statements from Guyra Shire Council that they saw a three or four council merger as a better proposal, Armidale Dumaresq Council at its meeting of 22 February 2016 resolved to request that the Minister for Local Government consider a broader regional merger of the four local government areas of Armidale Dumaresq, Guyra, Uralla and Walcha. This was proposed as an alternative to the NSW Government’s two proposed mergers between Armidale Dumaresq and Guyra Shire Councils and that of Tamworth Regional and Walcha Councils. Council does not consider this to be a “predatory” or “land grab” approach, rather, it is Council’s response to a process to address the reforms sought by the NSW Government.

In addition to this resolution, Council also resolved to request that the Minister authorise an independent assessment including community consultation across all four council areas as well as undertake a SWOT analysis to identify all the potential benefits and concerns of the constituent communities.

The Minister for Local Government subsequently referred the merger proposal to the Chief Executive of the Office of Local Government who appointed Mr Greg Wright as the Delegate to review and consider the proposal. Mr Wright engaged KPMG to prepare a Financial Analysis for the four council merger proposal which should be read in conjunction with this community information and can be found on the Council Boundary Review website at https://www.councilboundaryreview.nsw.gov.au/

While Council sought a more extensive process and assessment to be undertaken before progressing with the proposal, in view of the fact that neither the Minister for Local Government nor the Office of Local Government had done so, Council resolved that it should prepare some additional community information about the four council merger proposal to better inform the communities about a new Regional Council as proposed.

This information package has been prepared using Armidale Dumaresq Council’s internal resources and information from existing public reports and publicly available information. It was presented to Council at an open meeting and endorsed for distribution at an Extraordinary Meeting on 4 April 2016.

2. LOCALITY

Situated on the Northern Tablelands of NSW is the New England area. The area is located along the Great Dividing Range with an elevation of around 1000m.

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The four local government areas of Armidale Dumaresq, Guyra, Uralla and Walcha Councils are affectionately referred to as the heart of the New England. In Tourism terms it is identified as the New England High Country “at around 1000 metres above sea level, New England’s High Country offers visitors a truly evocative and unique experience with four distinct seasons. The City of Armidale and the towns of Guyra, Uralla and Walcha share a rich history and stunning natural environment. Where else can you experience World Heritage wilderness in the morning and indulge in the sophistication of world-class galleries and vineyards in the afternoon? The first thing that struck me was the colour, the leaves, the sky, rainforest, waterfalls… everything seemed more vivid and alive. The colours of the rustic farm sheds, the cathedrals, vineyards and the historic buildings – it’s like nothing else.” New England High Country Tourism Brochure

3. THE PROPOSAL

It is proposed that the existing local government areas of Armidale Dumaresq, Guyra, Uralla and Walcha Councils merge to form a new regional council. It is Armidale Dumaresq Council’s view, and one previously expressed in the 2003 Vardon Report and the 2010 Kibble Report, that the Councils of the New England benefit from a clear community of interest and association.

The proposed merger would result in a local government area covering approximately 18,108 square kilometres, serving a population of approximately 39,452 people. (Financial Analysis, KPMG. Merger proposal Armidale Dumaresq Council, Guyra Shire Council, Uralla Shire Council, Walcha Council March 2016).

This proposal would, if implemented, dissolve all four Councils and establish a new entity which would facilitate the rebirth of local government in the region and harness the strengths and innovations currently present in the Armidale Dumaresq, Guyra, Uralla and Walcha local government areas for the benefit of all residents.

A focus on innovation and efficiency in service delivery, diverse and inclusive representation in how the new Council would govern, a focus on achieving jobs growth and a sustainable and a strong future for all residents would become the very core of the new Council’s ethos.

The creation of the proposed new Regional Council would encompass an area steeped in history with an excellent mix of rural land with traditional and varied agricultural pursuits, connected rural towns and villages providing a unique sense of place and character, a solid commercial and administration base, a wide range of tourism opportunities and attractions, excellent cultural, sporting, health, educational and training facilities and a broad range of regional services including excellent road, rail and air transport connections.

For the purposes of this proposal the new Regional Council is referred to as the New England Regional Council.

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4. OUR COUNCILS

Armidale Dumaresq Council was proclaimed in 2000 when Armidale City Council amalgamated with Dumaresq Shire Council. It has 10 elected Councillors and the Mayor is elected annually by the Councillors. Armidale Dumaresq Council is a Group 4 Council in accordance with the Office of Local Government Grouping Criteria.

Guyra Shire Council operates with 6 elected Councillors and the Mayor is elected annually by the Councillors. Guyra Shire Council is a Group 9 Council in accordance with the Office of Local Government Grouping Criteria.

Uralla Shire Council operates with 9 Councillors and the Mayor is currently elected annually by the Councillors. However, from the next local government elections, the Mayor of Uralla will be a popularly elected Mayor. Uralla Shire Council is a Group 10 Council in accordance with the Office of Local Government Grouping Criteria.

Walcha Council operates with 8 Councillors and the Mayor is elected annually by the Councillors. Walcha Council is a Group 9 Council in accordance with the Office of Local Government Grouping Criteria.

5. OUR COMMUNITIES

The region has a total area of 18,108.2 km2 and in 2014 an estimated resident population of 39,452. The population density for the region is 2.2 persons per square kilometre, which is similar to the current density for Uralla Shire.

Table 1. Estimated Resident Population, 2014 Change Population Population 2013-2014 Area density 2014 Local Government no. % no. km2 persons/km2 Area Armidale Dumaresq 25,327 -0.2 -45 4,230.8 6.0

Guyra Shire 4,619 -0.3 -15 4,389.6 1.1

Uralla Shire 6,408 1.0 66 3,226.5 2.0

Walcha 3,098 -0.3 -10 6,261.3 0.5

Sub-region 39,452 -0.1 -4 18,108.2 2.2

ABS Catalogue 3218.0 Regional Population Growth, Australia, 2013-2014

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The City of Armidale was one of the first cities in Australia to be fully connected with NBN and is the largest operating centre where half of the proposed region’s population reside. The region also includes the main towns of Uralla, Guyra and Walcha and several villages including Bundarra, Ben Lomond, Black Mountain, Ebor, Hillgrove, Invergowrie, Kentucky, Kingston, Nowendoc, Tingha, Wollomombi, Woolbrook and Yarrowitch. Table 2 indicates the populations for each of the main urban centres in the region.

Armidale was recognised as one of the top 21 intelligent communities in the world when it received a Smart 21 Award in 2015.

In 2011 the population of the region was 37,557 with 52.8% of the population residing in Armidale. The next largest centre, Uralla, accounted for 6.3% of the region’s population with Guyra and Uralla accounting for 5.2% and 3.9%, respectively. Overall, almost 70% of the region’s population lives in the main urban centres with the remaining 30% of the population living in the villages and rural areas. 24,153 or 61% of the region’s population reside within 25 minutes driving time from the Armidale CBD. Existing rural villages have individual character and can provide alternative and more affordable housing options compared to Armidale, Uralla, Guyra and Walcha.

Table 2. Urban centres population, 2011 Urban centre Population proportion of LGA Median age Median age (LGA) (urban centre) population (urban centre) Armidale 19,818 82.2% 32 35

Guyra 1,947 44.3% 42 41

Uralla 2,388 39.6% 43 43

Walcha 1,482 49.1% 46 44

Total 25,635 68.3%

ABS Census 2011, Urban Centres and Localities

5.1 Our Connectivity

The approximate distances between Armidale and the boundaries of the region are:

a) 55km to Northern boundary, near Ben Lomond b) 69km to Eastern boundary, south east of Ebor c) 121km to Southern boundary, south of Nowendoc d) 50km to Western boundary, west of Kingstown.

The urban centres of Uralla, Guyra and Walcha and all of the villages of the region, except for Yarrowitch and Nowendoc, south of Walcha, are located within a 78km radius of Armidale. Yarrowitch is approximately 84km from Armidale and Nowendoc approximately 116km.

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The Tamworth regional centre is southwest of the region. The approximate distances by road between Armidale, Guyra, Uralla, Walcha and Tamworth are summarised in Table 3. Armidale is approximately 111 kilometres by road from Tamworth.

Table 3 Distances (by road) between towns in the region and Armidale and Tamworth Guyra Uralla Walcha

Armidale 38km 23km 64km

Tamworth 148km 88km 90km

5.2 Workforce and residents 2011

The following information is about where people live and work in relation to Armidale Dumaresq Council area. In 2011, of the 10,216 people who worked in Armidale Dumaresq: a) 8,458 or 82.8% lived in Armidale Dumaresq b) 1,156 or 11.3% lived in Uralla Shire c) 217 or 2.1% lived in Guyra Shire d) 59 or 0.6% lived in Tamworth Regional e) 49 or 0.5% lived in Walcha.

In 2011, 780 (7.5%) of Armidale Dumaresq’s working residents travelled outside of the local government area to work, including: a) 250 or 2.4% who worked in Uralla Shire b) 136 or 1.3% who worked in Guyra Shire c) 47 or 0.5% who worked in Tamworth Regional Council d) 21 or 0.2% who worked in Walcha. ABS Census 2011, Urban Centres and Localities

5.3 Net migration 2006-2001

Between 2006 and 2011 the local government area with the highest net migration to Armidale Dumaresq was Walcha with 59 residents.

The next highest net migration of residents to Armidale Dumaresq was from Port-Macquarie Hastings with 58. The largest net loss from Armidale Dumaresq to another local government area was 133 residents who moved to Brisbane.

During the same period more Guyra Shire and Uralla Shire residents moved to Armidale Dumaresq than Armidale Dumaresq residents moved to these local government areas. The net migration to Armidale Dumaresq from Guyra Shire and Uralla Shire was 23 and 22 residents, respectively.

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5.4 Population change

Between 2004 and 2014, the population of the region grew by 4.8%, from 37,653 to 39,452. The change in population between 2004 and 2014 for the Sub-region is shown in Table 4.

Table 4. Population change, 2004-2014 Estimated Resident Population (no.) Change 2004-2014 Local Government Area 2004 2014 % no. Armidale Dumaresq 24,171 25,327 4.8 1,156

Guyra Shire 4,353 4,619 6.1 266

Uralla Shire 5,885 6,408 8.9 523

Walcha 3,244 3,098 -4.5 -146

Sub-region 37,653 39,452 4.8 1,799

Source: ABS Catalogue 3218.0 Regional Population Growth, Australia, 2013-2014

The greatest change in population was in Armidale Dumaresq where the population increased by 1,156. Uralla Shire experienced the largest % growth rate (8.9%) during the period while Walcha experienced a decline (-4.5%) in population.

Over the next 15 years the population of the region is projected to grow to 45,850. *The age group that is expected to experience the greatest increase is the over 65 age group with an estimated increase of 3,150 people. Armidale Dumaresq is likely to experience an increase in the population of all age groups. While there are variations between the other local government areas, each area is projected to experience population loss in the 45-64 year age group and this is reflected in the region with a projected population decline in this age group up to 2031 of approximately 350 people. The other age groups for the region are projected to experience an increase in population up to 2031, being the 15-44 year olds (estimated increase of 1,500) and 0-14 year olds (estimated increase of 800). *NSW Department of Planning and Environment 2014

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6. OUR SIMILARITIES AND DIFFERENCES

The following provides a brief summary of the similarities and points of difference between the four local government areas that make up the region, based on information from the 2011 Census.

6.1 Similarities

The main similarities between the four local government areas include:

a) Of the five major employment industries for each local government area, the following industries were common to all areas: i. Sheep, beef cattle and grain farming, ranging from 4.7% of employed people in Armidale Dumaresq to 38.2% of employed people in Walcha. The numbers of employed people in this industry were 491 in Armidale Dumaresq, 467 in Guyra Shire, 407 in Uralla Shire and 556 in Walcha Shire. ii. School education, ranging from 4.4% of employed people in Walcha to 7.2% of employed people in Armidale Dumaresq. b) Cafes, restaurants and takeaway food services were also identified in the top 5 employment industries for Armidale Dumaresq (4.8%), Uralla Shire (3.2%) and Guyra Shire (2.6%). Local government administration was a top 5 employment industry for all areas (2.9% - 3.6%), except for Armidale Dumaresq. Both Armidale Dumaresq (11.3%) and Uralla Shire (5.6%) included tertiary education in their top 5 employment industries. c) Residents of the four local government areas have a similar ancestry, with the most common being Australian, English, Irish and Scottish. d) The majority of residents were born in Australia, with the proportion of population varying between 82.0% for Armidale Dumaresq and 90.7% for Walcha. The most common countries of birth, other than Australia, across the four areas was England (1.3% - 2.3%) and New Zealand (0.9% - 1.1%). e) The most common responses to religious affiliation in the four local government areas was Anglican (26.9% - 42.4%), Catholic (20.9% - 23.0%) and No Religion (12.8% -21.3%). f) The proportion of Aboriginal and Torres Strait Island people in the populations of each local government area is higher than the NSW figure of 2.5% and varies between 5.9% or 355 in Uralla Shire and 10.0% or 440 in Guyra Shire. Armidale Dumaresq Council at 6.3% or 1,513 and Walcha Shire at 7.3% or 221. g) Most people use a car, either as driver or passenger, to travel to work with the highest proportion being in Armidale Dumaresq (70.0%) and lowest in Walcha (53.9%). h) The number of children per family is similar across the Sub-region, averaging 2 i) The average number of people per household is similar for each of the four council areas, varying between 2.4 (Armidale Dumaresq) and 2.6 (Uralla Shire). j) Across the Sub-region, the average number of motor vehicles per private dwelling is slightly higher than the NSW figure of 1.6. The average number of motor vehicles per private dwelling ranges from 1.7 in Armidale Dumaresq to 2.0 in Guyra and Uralla Shires.

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6.2 Differences

The main differences between the four local government areas include:

a) The median ages for the populations of Guyra Shire (41 years), Uralla Shire (43 years) and Walcha (44 years) are higher than for Armidale Dumaresq (35 years). b) The proportion of married people is lower for Armidale (42.5%) than for the other three local government areas (49.3% - 58.2%) and NSW (49.4%). c) The proportion of Armidale Dumaresq’s population (39.9%) attending an educational institution is considerably higher than the other local government areas (25.6% - 30.5%). Thirty six percent (36.4%) of Armidale Dumaresq residents attending an educational institution were enrolled in a tertiary or technical institution, compared to 17.6% for Uralla Shire, 11.8% for Walcha and 11.4% for Guyra Shire residents. d) In Armidale Dumaresq 88.1% of people spoke only English at home, compared with 94.1% for Uralla Shire, 94.8% for Guyra Shire and 96.0% for Walcha. In approximately 7% of Armidale Dumaresq households two or more languages were spoken. e) The proportion of employed people in the Walcha workforce of 62.2% being employed full- time, 28.2% part-time and 3.9% unemployed is higher than the other council areas. By comparison, the proportion of people in the Armidale Dumaresq workforce that are employed full-time is 54.7% and unemployed is 7.4%. In 2011 the unemployment rate for NSW was 5.9%. Part-time employment in the four workforces is similar, varying between 28.2% and 32.5%. f) Of the five major employment industries for each local government area: i. only Armidale Dumaresq includes hospitals (3.0% of employed people) ii. only Guyra Shire includes mushroom, tomato and vegetable growing (3.6% of employed people) iii. only Walcha includes road freight transport (3.4%) and supermarket and grocery stores (2.4% of employed people). g) Walcha has the highest proportion of families without children at 50.1%, compared to Armidale Dumaresq (40.0%), Guyra (43.0%) and Uralla (42.7%). Walcha has the lowest proportion of families comprising couples with children (37.0%). Eighteen percent (18%) of families in Armidale Dumaresq are one parent families compared with Walcha’s 11.5%. h) The percentage of unoccupied private dwellings for each local government area is slightly higher than the NSW figure of 9.7%, except for Walcha (19.7%) which is double the State figure. i) While separate houses are the most common type of housing for the four areas, Armidale Dumaresq has the lowest proportion at 82% compared with 95% for Guyra Shire, Uralla Shire and Walcha. Armidale Dumaresq also has the highest proportion of medium density housing at 16.9% compared with 3.3 to 4.1% for the other council areas.

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j) Armidale Dumaresq has the highest proportion (35.8%) of rented private dwellings compared to Guyra Shire (23.2%), Uralla Shire (20.4%) and Walcha Shire (26.1%). k) The median weekly household incomes for Armidale Dumaresq ($991) and Uralla ($933) are higher than Walcha ($867) and Guyra ($805). l) The median monthly mortgage repayment for Armidale Dumaresq ($1,441) is greater than that of Uralla ($1,230) and Guyra ($1,083) and considerably greater than Walcha ($867). m) Median weekly rents have a similar pattern to median monthly mortgage repayments with median weekly rent in Armidale Dumaresq ($200) being greater than rents in Uralla and Guyra (both $150) and considerably greater than Walcha ($100).

7. OUR EXISTING COLLABORATION

The councils in this region already work very closely together through: Tourism New England High Country tourism campaign spans across the four Councils. Rural Fire Service Region North, New England District covers the four Councils. Noxious Weeds New England Weeds Authority is the control authority for noxious Management weeds in the four Councils. Shared Local Government Chief Financial Officer, Financial Support, IT, Human Resource, Services Insurances, Purchasing, Plan Management and Library Cataloguing services to Guyra Council; Northern Tablelands Cooperative Library service, provision of Companion Animal Shelter services to Uralla. Regional Organisation of Covers the four Council’s and also the Glen Innes Severn and Inverell Councils Councils (NEGOC – formed 2015). Local Emergency Includes all four councils. Management Armidale Regional Airport Council and regional industry groups and private citizens. Users group

Should the four Council merger proceed, in addition to the identified benefits outlined in the KPMG Financial Analysis, the following immediate opportunities exist: Regional Employment, The region working as one to secure and encourage investment in business Business and development and employment opportunities rather than competing Investment strategies against each other. Regional Water Utilisation of existing water supply dams, reservoirs and bores to connect Supply the towns for a more reliable water supply system. Regional Waste Implementation of a more sustainable regional waste management and Management collection service. Armidale Dumaresq is currently constructing a new landfill with regional capacity. Regional Sewage Considering the sewage management of the region as a whole, rather than Management individual operations to achieve economies of scale. Regional Energy Providing a regional voice and capacity to secure better energy tariffs for bargaining council operations. Regional voice A new Council representing and voicing the views of a regional area.

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8. STATE AND FEDERAL REGIONAL SERVICES

8.1 Health Services

Armidale has two hospitals, the Armidale Hospital which is part of the Hunter New England Local Health District (HNELHD), and the Armidale Private Hospital.

Armidale Hospital is a Rural Referral Hospital providing a wide range of services including medicine, surgery, obstetrics, paediatrics, geriatrics, a 24-hour emergency department, and outpatient clinics. Allied health services, including occupational therapy, speech pathology, social work, physiotherapy, dietetics, radiology, pathology, oncology, orthodontist and pharmacy are an integral part of the services provided by the organisation.

Multi Purpose Services (MPS) are provided by HNELHD at: a) Guyra MPS offers a range of community-based health services, an emergency department and 17 aged care beds. b) Tingha MPS provides care to people living in Tingha and the surrounding areas. The MPS has 8 aged care beds and one respite bed, and is a 24-hour first aid post. A range of Aboriginal, primary and community health services are also available. c) Walcha MPS is a 24-bed facility, with 15 residential high care aged beds and nine acute beds.

There are HNELHD Community Health Centres at Armidale, Guyra, Bundarra and Uralla. Aged care facilities are available in Armidale, Bundarra, Guyra, Uralla and Walcha.

8.2 Education facilities

There are pre-schools, primary and secondary schools in the major towns and some of the villages in the region. Armidale also has the University of New England and New England TAFE.

Armidale has three regional private boarding schools which provide boarding opportunities for students from the New England Region, state and further afield.

The University of New England (UNE) with an operating budget of over $300million provides courses for students who study externally or on campus. There are approximately 4,400 students attending the UNE campus, with 2,000 on campus students residing in the university’s residential colleges. Most of the remaining 2,400 students live in Armidale and surrounding localities. There are more than 15,000 external students undertaking studies remotely. In 2014 there were 503 academic and 683 non-academic staff employed by UNE.

UNE is establishing the “Smart farm” as a leading Agriculture and Broad Acre Farming education and research facility.

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8.3 Government Services

There are a range of government services located in Armidale that support the region, particularly those of NSW Government departments and agencies. The Commonwealth Government also has a Centrelink and Medicare office in Armidale. The State member for Northern Tablelands office and the Federal Member for New England Ministerial offices are both located in Armidale.

Some of the NSW Government departments and agencies located in Armidale include:

a) Department of Education – Public Schools NSW Office b) Department of Primary Industries - Armidale District office for DPI, Crown Lands, NSW Office of Water and Soil Conservation Services offices. c) Department of Family and Community Services – Community Services and Housing offices. d) Department of Planning and Environment – Environment Protection Authority and regional National Parks office. There is also a National Parks office in Walcha. e) Department of Justice – Armidale Local Court House and Juvenile Justice Centre. There is also a Local Court House in Walcha. The New England Local Area Command (LAC) of the NSW Police Force is located in Armidale with a 24 hour operation. Police stations in the New England LAC also include Bundarra, Guyra, Tingha and Uralla Police Stations. Walcha and Walcha Road Police Stations are in the Oxley LAC. f) Department of Industry, Skills and Regional Development – the Sub-region is part of the Northern Tablelands Local Land Service, which has offices in Inverell, Armidale, Glen Innes and Tenterfield. g) NSW Rural Fire Service – the New England district office is in Armidale. The New England district includes the four local government areas proposed in this merger. h) A Service NSW Centre is located in Armidale which includes the following agencies - Roads and Maritime Services, Fair Trading, Births Deaths and Marriages, Housing NSW, Office of State Revenue and NSW Seniors Card. i) There is also a Service NSW Agency at Walcha providing the following services – drivers’ licences, vehicle registration renewals, driver testing, boating licences and registrations, contractor licence applications, applications for Births, Death and Marriage Certificates and Seniors Cards. j) Regional Development Australia Northern Inland office (Not for profit – Government funded) is located in Armidale. k) The New England North West Business Enterprise Centre maintains its office in Armidale which works with and collectively for the broader region.

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8.4 Transport

The main forms of transport in the region are road, rail and air. Armidale Regional Airport is one of three regional airports in the New England North West, the others being at Tamworth and Moree. There are up to 90 passenger flights between Armidale and Sydney operating each week by two commercial airlines – QANTASLINK and REX.

There are bus services between Armidale, Uralla and Guyra and a town bus service for several routes operates in Armidale. School bus services operate across the four Council areas. Commercial services to Sydney, Melbourne, Brisbane and Coffs Harbour are also available.

The Main Northern Railway line runs between Sydney and Armidale. Within the region, there are stations at Walcha Road, Uralla and Armidale. The railway line terminates at Armidale where there is a bus connection service to the north and northwest. As part of the State government’s Transport Access Program the transport interchange at Armidale Railway Station has recently been upgraded, including new footpaths, cycle facilities and car parking.

8.5 The Armidale Regional Airport

Statistics from passenger movements identify that the Armidale Regional Airport provides a true regional air service. The catchment area for passengers through the Armidale Regional Airport are depicted below in light blue.

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The following table provides actual and projected increases in aircraft and passenger movements through the Regional Airport over the past 12 years and projections for the next 20 years.

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9. OUR FINANCES

The following table is a summary of the income streams (2014/15) from each of the four Councils in the proposed merger and how the proposed New England Regional Council would look. All Numbers are in $ ‘000.

Stream Armidale Guyra Uralla Walcha NERC (ADC USC GSC WC) Dumaresq User Charges 17,650 1,552 4,922 4,493 & Fees 28,617 Interest & Investment 1,384 577 236 148

Revenue 2,345 Other 1,950 732 771 230 Revenue 3,683 Grants & Contributions provided for 6,792 5,001 5,835 3,681 Operating

Purposes 21,309 Grants & Contributions provided for 3,045 463 4,152 277 Capital

Purposes 7,937 Annual 7,565 1,292 1,970 982 Charges 11,809

Land Rates

Business 2,246 99 99 106 2,550 Farmland 2,547 1,866 1,939 2,633 8,985 Mining 24 3 0 1 28 Residential 8,775 641 1,359 384 11,159 Total $ 51,978 12,226 21,283 12,935 98,422

Armidale Dumaresq Council supports the NSW Government’s policy position that will see the existing rating structures maintained for a period of four years after a new council is formed.

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Grants & NERC (ADC USC GSC WC) Grants & Contributions ($000) Contributions provided for provided for Capital Purposes, Annual Charges, Operating $7,937 $11,809 Purposes, Mining, $28 $21,309

Residential, $11,159 RATES $22,722 Other Revenue, Farmland, $3,683 $8,985

User Charges & Fees, $28,617 Interest & Investment Business, $2,550 Revenue, $2,345

Grants & Grants & Contributions Contributions NERC (ADC USC GSC WC) provided for provided for Operating Capital Purposes % Purposes 8% 22% Mining Annual 0% Charges 12%

Residential RATES 23% 11% Other Revenue Farmland 4% 9%

User Charges & Fees Business 29% 3%

Interest & Investment Revenue 2%

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10. WHAT HAS BEEN LEARNT FROM PREVIOUS MERGERS

The Tamworth Experience The following information is an extract from the submission prepared by Cr Russell Webb to the Inquiry into Local Government in NSW of the Tamworth Regional Council merger experience.

“Key Outcomes and Demonstrable Benefits • Increase in service delivery through improved resource management • Greater opportunity for capital investment in regional infrastructure and better regional strategic infrastructure planning • Improved regional decision making • Increased capacity to undertake large scale projects • Increased capacity to engage in political advocacy for the region • Better management of assets and finances, and ability to match funding for long term assets. As a consequence of the merger, the amalgamated Council was able to better understand intergenerational equity issues and recognise the need to finance long lived assets to reduce ongoing maintenance costs. • Ability to attract professional capacity. The amalgamated Council has the financial capacity and recruitment strategies in place to attract highly skilled and experienced employees, including highly experienced international professionals. • Streamlining planning policies and region wide strategies. Since the merger, the Tamworth Regional Council have delivered a 30 year infrastructure plan, developed a single Local Environment Plan for the entire region, consolidated 30 development control plans into five and merged five development contribution plans into one. The result of this is consistency for development within the region, the consolidation of conflicting policies and greater efficiency from an operating perceptive.

Lessons Learnt • Management intervention is key to the success of the merger process. Central to this is managing the mechanics of the organisation which may include reshaping the individual councils prior to amalgamation. • Managing change and community expectations is a major challenge which needs to be addressed during the merger process. • Developing a governance model to retain the identity of the individual centres and maintain a robust local democracy will aid in addressing community concerns regarding identity loss and lack of representation. • In the right circumstances amalgamations are an “opportunity” not an “outcome”. • Other lessons learned as noted by Tamworth Regional Council include: • A transition period prior to formal commencement is needed. • Staff focus should be on creating a new organisation– not an organisation that is a composite of a number of old organisations. • A planned implementation with meticulous attention to detail is essential. • Maintenance of service delivery throughout the process is an important community commitment. • The method for calculating workers compensation premiums in New South Wales when they are merged entities may inflate the premium for amalgamated councils.

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• The merged council received the same level of subsidy from the State Government’s Infrastructure Program as the five individual councils”. Submission to the Inquiry into Local Government in New South Wales 2015 (Cr Russell Webb – Deputy Mayor, Tamworth Regional Council) May

11. THE MERGER PROCESS

The Tamworth experience

Structure and Representation

Submission to the Inquiry into Local Government in New South Wales 2015 (Cr Russell Webb – Deputy Mayor, Tamworth Regional Council)

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