REPORT ON A POTENTIAL MERGER: BREAK O’DAY AND GLAMORGAN-SPRING BAY COUNCILS OCTOBER 2009 LOCAL GOVERNMENT BOARD LOCAL GOVERNMENT BOARD REPORT ON A POTENTIAL MERGER: Between the BREAK O’DAY and GLAMORGAN-SPRING BAY COUNCILS This publication is available online at: www.dpac.tas.gov.au/lgboard The Chairperson Local Government Board GPO Box 123 HOBART TAS 7001 2 Contents Membership of the Local Government Board ........................................................................................................... 6 Abbreviations ............................................................................................................................................................................... 7 Executive Summary .................................................................................................................................................................. 8 Chapter 1. Introduction and Review Procedure .............................................................................................. 12 1.1. Scope of the review .......................................................................................................................................... 13 1.2. Review Methodology ....................................................................................................................................... 15 Chapter 2. Context of this review ........................................................................................................................... 17 2.1. Financial Sustainability of Councils ............................................................................................................. 17 2.1.1. National Context ..................................................................................................................................... 17 2.1.2. Tasmanian Context ................................................................................................................................. 19 2.2. Local Government Reform ........................................................................................................................... 21 2.2.1. National and International Context ............................................................................................... 21 2.2.2. Tasmanian Context ................................................................................................................................. 24 2.2.3. Mergers .......................................................................................................................................................... 25 2.3. The Board’s approach ...................................................................................................................................... 27 Chapter 3. East Coast: Background information .............................................................................................. 28 3.1.1. Comparative statistics ............................................................................................................................ 28 3.2. Break O’Day Council........................................................................................................................................ 30 3.2.1. Council Financial Performance .......................................................................................................... 30 3.2.2. Employment ................................................................................................................................................ 30 3.2.3. Population .................................................................................................................................................... 30 3.2.4. Age Profile .................................................................................................................................................... 31 3.2.5. Area ................................................................................................................................................................. 31 3.2.6. Roads .............................................................................................................................................................. 31 3.2.7. Townships in the Municipal Area .................................................................................................... 31 3.3. Glamorgan-Spring Bay Council ................................................................................................................... 33 3.3.1. Council Financial Performance .......................................................................................................... 33 3.3.2. Employment ................................................................................................................................................ 34 3.3.3. Population .................................................................................................................................................... 34 3.3.4. Age Profile .................................................................................................................................................... 34 3.3.5. Area ................................................................................................................................................................. 34 3.3.6. Roads .............................................................................................................................................................. 34 3.3.7. Townships in the Municipal Area .................................................................................................... 35 3 Chapter 4. Financial Analysis ....................................................................................................................................... 36 4.1 Current and long-term viability of the stand-alone councils ....................................................... 39 4.1.1. Financial Overview of Break O’Day Council ............................................................................. 39 4.1.2. Financial Overview of Glamorgan-Spring Bay Council ......................................................... 40 4.1.3. Revenue and rating in the two councils ....................................................................................... 41 4.1.4. Services .......................................................................................................................................................... 42 4.1.5. Infrastructure gaps and conditions .................................................................................................. 43 4.1.6. Grants ............................................................................................................................................................. 44 4.1.7. Board findings with respect to the short-term and long-term viability of the two stand-alone councils ................................................................................................................................................... 46 4.2. Long-term viability of a merged council ................................................................................................. 48 4.2.1. Revenue and Rates .................................................................................................................................. 48 4.2.2. Grants ............................................................................................................................................................. 48 4.2.3. Efficiencies under a merged council ............................................................................................... 50 4.2.4. Non-efficiencies & Costs ...................................................................................................................... 52 4.2.5. Board’s findings regarding the financial position of a merged council .......................... 56 Chapter 5. Benefits and Impacts for the Community ................................................................................... 58 5.1. Economic benefits and impacts .................................................................................................................. 58 5.1.1. Economic characteristics of the municipal areas ..................................................................... 58 5.1.2. Role of the councils in stimulating and facilitating the local economy ......................... 59 5.1.3. Infrastructure ............................................................................................................................................... 61 5.1.4. Tourism .......................................................................................................................................................... 62 5.1.5. Land Use Planning .................................................................................................................................... 63 5.1.6. Board Findings and Recommendations on Economic Development .......................... 65 5.2. Social benefits and impacts ........................................................................................................................... 67 5.2.1. Communities of interest and sense of community ................................................................ 67 5.2.2. Social Service Provision to the East Coast ................................................................................. 69 5.2.3. Board Findings and Recommendations