Mayor appears to have "No Idea" regarding amalgamation

Eurobodalla Shire Councillors went behind closed doors at the Council meeting of 28th Oct 2015 to decide our fate about amalgamation. If you watch the webcast right near the end you will see that the Mayor could not even bring himself to say the word “amalgamation” in public; he called it “the other matter”. This is how determined our councillors are to exclude us from the conversation.

Prior to the meeting ERA asked all councillors and the Mayor two questions:

“The Minister for Local Government and the Premier of NSW have both declared that Councils will be merged. The Local Member Andrew Constance has recently flagged that at least Palerang Council is under consideration for merger with Eurobodalla. This is by definition the biggest event in the history of Eurobodalla Shire and as a Councillor of this Shire it would be expected that you have a point of view and an action or inaction plan for the ratepayers that you represent. We ask you the following question on their behalf:

Considering that there is $15 million for infrastructure projects such as aquatic centres and performing arts centres and $10 million which will only be given to councils who actively seek amalgamation, do you support sitting back and doing nothing and risk losing Eurobodalla’s share of $25 million? Will you continue to support ongoing special rate rises?”

As it is not unusual for the more arrogant of Councillors to ignore ratepayers’ enquiries when it suits them, we added an incentive to reply in that if there was no response we would publish their nil response as “No idea.”
Mayor Lindsay Brown: No idea; Clr Gabi Harding: No idea; Clr Danielle Brice: No idea. Certainly they have no ideas which they want to share with you the ratepayer.

As it turns out that may have been a good strategy. Clr Pollock ignored the questions and made some rambling response regarding the allocation of ERA preferences at the election over 3 years ago. Clr Schwarz responded with a bedtime story about the financial dealings of dental surgeries. He called his reply simple. Schwarz also demonstrated his total lack of understanding of the IPART report in the same way that Clr Burnside did in his reply.

Burnside, after lashing ERA and everyone else for only having “half the facts”, went on to make a complete fool of himself (as did Schwarz) by calling Palerang and Queanbeyan “basket cases” “crumbling bridges and roads” “unfit”. In fact IPART found both those Councils Fit in all categories including financially fit, bar one: scale and capacity; they are too small. Neither of them could have read the report. The concern for all ratepayers is that these two Councillors are prepared to make life altering decisions for others with little or no research, little or no understanding and arrogant incompetence. This alone makes amalgamation appealing.

ERA Councillors Innes and Leslight want this debate in the public arena. They do not want this shire forever dependent upon SRV’s. They support all of the potential benefits of amalgamation. They say it is up to the six councillors who whisper their decisions about amalgamation behind closed doors to prove why it is not one of the greatest opportunities for this long stagnating Shire. It is not good enough to say we are OK; we want to be the best we can be. The next fact shows what OK means.

FACT: In the last 5 years 2.6% population growth in Eurobodalla, yet 4.1% in NSW and 4.6% in same Group 4 Councils as ours. Yet this Council wants more of the same.

Ron Gifford - ERA


Councillor Schwarz reply:

Dear Mr Gifford

Let me put it to you as simply as possible.

Imagine one has a dentistry practice and the business is going well. In fact, recently you had an external consultant in and they told you that your business is fit for the future and you are serving your customer base well. Your finances are in good order, as are your assets. Then one day, someone from ERA (not sure who they are or what they represent these days) says that you should take on two other practices that lose money hand over fist, after they joined forces, whose assets are in disrepair, their books are a shambles and their customer base small but geographically big (9000 sq km with crumbling roads and bridges) and the people not happy. ERA thinks it is a fantastic idea to use the hard earned dollars of Eurobodalla shareholders to bail out two failed practices to the west on a vibe.

But if you take on these two new distant practices you may get a new backyard pool (above ground) thrown in, but your Eurobodalla shareholders (Mum and Dad) will have to service and maintain it, but in this case, let's just call it Palerang dentistry, has decided to stand alone and therefore Eurobodalla will not get the cheap pool.

Please oh enlightened ERA persons, please tell us where where the value is. Always on the lookout for a good deal.

Perhaps Clr Leslight will show us the way tomorrow. The Motion he is moving is really on the pace.

Regards
Clr Peter Schwarz

Clr Pollock reply
Hi Ron,I remember the fantastic deal you offered me at the last local govt. election, I am sure you remember- My second preferences for ERA 3rd preferences,so as a councillor with no idea ,please at least include this info as a prelude.

Cheers
Clr Rob Pollock

Clr Burnside reply
Hi Ron,

Thanks for your email. Great to see you using tact and diplomacy in your usual artful way.

Your observation regarding Councils merging is correct. Last Tuesday, the Government released IPART's findings on the 'Fit for the Future' process which found about 2/3rd's of Councils didn't make it by their criteria.

Fortunately, Eurobodalla, along with our neighbours, Bega and Shoalhaven, originally deigned by the State to be 'stand alone' Councils, demonstrated that they conformed to the requirement to be fit, and are not being considered for amalgamation. This hasn't stopped us forging ahead with an MOU with Bega Shire to get more economies and use our close similarities to our mutual advantage. I heard Andrew Constance on the radio last week too, and noted that he's no longer looking at coastal Council mergers but is wanting us to look west to develop scale of operations.

Naturally, when he said that, our Mayor called his Palerang counterpart and was told that they were simply not interested in continuing the argument and would draw a line in the sand as a 'stand alone' Council, daring the State to sack them which they probably will do.

Funds from the State supporting amalgamations are made available to Councils which agree to merge, individually and collectively. No funds would be made available for us to merge with Palerang as they don't agree.

Palerang is a Council formed a few years back by amalgamating Braidwood and Bungendore, two financially unviable Councils, into one -- as it turns out -- great big unviable Council. It's a basket case -- small pop., huge road system (1400km of roads; 700 of them dirt - 30% of their budget spent just on them) small rate base and no money. What on earth would there be to gain by us taking them on? Bungendore and Queanbeyan are virtually commuter suburbs of Canberra and Braidwood has historic links -- educational; business etc. with Goulburn so there's absolutely no 'community of interest' either.

If you can form an argument that demonstrates that Eurobodalla and Bega ratepayers (also Bega State seat electors) would somehow be better joining with their unfit tablelands neighbours taking on a raft of problems that we simply don't have, then I'd love to hear it.

If, however, i don't hear from you in 48 hours I'll file your email under 'here goes Ron again armed with half the facts'.

Yours in tact and diplomacy,

Neil

Eurobodalla Shire should consider looking West - Council Amalgamations.

Eurobodalla Shire should consider looking West - Council Amalgamations.

The Eurobodalla Ratepayers Association (ERA) wishes to advise that following the release of the IPART’S Fit for the Future results Eurobodalla Shire is now placed in a very exciting position.

As indicated by our local member Andrew Constance there are two Councils, Palerang and Queanbeyan to our west which have been deemed “unfit”. Both of these Councils have much in common and have shared interests with Eurobodalla.

More than thirty per cent of Eurobodalla rates are currently paid by the folks to our west; they choose to buy homes here and holiday on the South Coast. Our common interests include farming communities, rural and small businesses, tourism, and strong community interest in road safety on the Kings Highway; a combined effort would see the road vastly improved. Eurobodalla Council (ESC) is a member of the South East Region of Councils (SEROC), which includes Palerang and Queanbeyan.

The current, and previous Council, communicated the value of SEROC membership to ratepayers. These regions share our interests and would want to help build and share our future prosperity.

On ABC Local Radio, Member for Bega Andrew Constance continues to challenge councils in his electorate to think beyond being found ‘Fit for the Future’ to what they can do to ensure ratepayers get value for money and the services and infrastructure they deserve.

The answer seems clear. Eurobodalla Council has 30 days to broker a deal with Palerang and Queanbeyan to voluntarily merge. Council can then tap into the recently announced new Stronger Communities Fund, which provides each new council up to $15 million to invest in community infrastructure projects such as an Aquatic Centre or a Performing Arts Centre, and $10 million for each new council to ensure that ratepayers do not pay for the up-front costs of merging. This funding is only available to those mergers agreed to by councils and the NSW Government.

ESC cannot wait until amalgamation is made to happen and it is clear that the State government will amalgamate unfit councils with fit councils. ESC must approach the State government with a plan to amalgamate with Palerang and Queanbeyan or miss out on the money and opportunity.

 The ERA backs a merger between Eurobodalla, Palerang and Queanbeyan. It is an unexpected gift out of the ‘Fit for the Future’ process. It’s a chance to re-energise the shire, create jobs and opportunities for families and young people, and build better transport links.

Mayor considers Capital Improved Value as an alternate to raise more rates

Mayor Lindsay Brown has indicated in his submission to the the NSW Legislative Council’s inquiry into local government his interest in considering a move away from land rates based on unimproved value to capital improved value, which refers to the total market value of the land and improved value of the property and that rate exemptions such as pensioner rebates should be reviewed for sustainability and equity

The ERA was surprised to learn that Mayor Lindsay Brown made a submission without any community consultation  to the NSW Legislative Council’s inquiry into local government.

You can find the full submission and the excellent Letter to the Editor (in full) by Kerry Foster on our ERA Media Release page:

http://www.eurobodallaratepayers.com.au/MediaReleases.htm

Mr Mayor and Council:

When will community consultation start?

When will Council post a copy of Cr Brown’s statement to the NSW Legislative Council to the council website?

Will Council engage the community on the upcoming Review of Local Government Rates by IPART, and will Council inform the community that they too can make submissions?

Will Council ensure there is robust community debate about its proposition that rates are based on Capital Improvement Values?

The ERA Team

Time For Change

Time for Change

Over the last few weeks the ERA have attended various public and council meetings. The public are demanding real change within the ESC. The public view the ESC as responsible for preventing the Eurobodalla from thriving. 

Unless ESC responds immediately with specific actions to address specific issues, in accordance with the demands of the ratepayers, then surely this Council will cease to exist in its present form.

We need new management at a high level at the council and we need it quickly. We insist that ALL the known blocks to economic growth are removed. We need all the bureaucratic and political red tape to stop. We need clear future direction and vision, driven by the community, articulated by the Mayor, who must lead for the community and cease being an apologist for the ESC.

The 10 key actions that we, the ratepayers of ESC require are:

1. . Completion of the Rural Lands Review Strategy and an LEP within 3 months, amended to reflect the community demands ( “like for like” zoning, NO E zones or Overlays, no minimum lot sizes , no requirement for a council maintained sealed road and no sun-setting clauses on rural dwelling entitlements )
2.  That Council review its SLR policy to the satisfaction of the those affected in the community 
3.  An immediate reduction in non –essential services that we cannot afford and internal structural change / reduction in ESC staff that improves efficiency, to ensure that core essential services are provided. An external review of services is required.
4.  Reform of the planning departments’ policies to attract development and facilitate home building 
5.  Relaxation of blocks to developers and investors
6.  Adopt strategies that attract funding for major developments and aggressively pursue infrastructure grant monies, and use those monies for their purposes WITHIN A DEFINED TIMEFRAME (e.g. The Spine Road)  
7.  A concerted effort to get the population / rateable base UP in this Shire by attracting new business and people, and by making the shire an affordable place to live 
8.  That ESC addresses infrastructure maintenance issues 
9.   That council releases its FFTF document for community discussion before June 30^th. 
10.  That all senior personnel are on performance contracts and all other staff are on a productivity improvement scheme.
    

 

To implement this regime of change it is recommended that the ESC finds a suitably qualified individual   [number two to the GM] to oversee this program. This person must advocate for the community demands and drive effective change in almost all aspects of council business.

We will strongly advocate for State Government intervention if the ESC refuses or fails to comply.

Sincerely the ERA Team

Chart: According to this information from IPART, ESC’s Full Time Equivalent staffing cost is about $6MILLION above the Group 4 average and about $7.5MILLION above the State average.

When Consultant / Contractor costs are added, ESC appears to be about $4.5MILLION above both the Group 4 and State averages.

Fit For the Future Update

Fit For the Future Update

Many Shires across NSW are verging on financial non sustainability and the time has come to reckon with the facts.

For many years now, the ERA has been trying to get the ESC to confront a reality that they continue to ignore.

The Independent Pricing and Regulatory Tribunal  (IPART) has been engaged by NSW Government to assess whether ESC is Fit for the Future. IPART has written to the ERA inviting us to make a submission, and we are now asking the Eurobodalla ratepayers and residents for their views.

Some background beforehand:

On June 30^th this year, the NSW government will be making a decision on what form the future ESC local government will take. If you are unaware of this, it is because our council has failed to engage the community early enough to bring residents and ratepayers with them on this important journey. Many other Shires, by contrast, have engaged early and actively with their affected communities to ensure that their residents are fully informed and involved in the process. 

By the 16^th of October this year, the NSW Government, based on the assessment of Eurobodalla Council by IPART, will have made a decision about the financial viability and ongoing sustainability of the Eurobodalla Council as a local government entity.  

The conversation before June end, and October the 16^th must NOT be just between IPART and Council staff and Councilors behind closed doors.

The ERA has been demanding a major external efficiency review for some years. A review that is open, transparent and above all honest. Council has lost the communities trust to honestly and critically review itself.

Currently, ESC has admitted that it will fail the long term IPART criteria fitness tests that relate to operating performance and own source revenue. IPART will propose in their report that if these benchmarks are not met within five years, then the ESC may not be viable.

Even if IPART grant approval of the 21% SRV application to the Council this month, the next increase application in three years’ time will have to be considerably higher for the council to reach its financial targets. That money will once again come from already burdened ratepayers who can ill afford these rate rises. We are nowhere near ‘Fit for the Future.’ 

Our ability to fund Infrastructure has been rated as poor. There is a real problem when Council are given $11 million to finish the Spine Road in early 2014 and the Council responds saying they may be able to start the project in the latter half of 2016!

There are, however, other ways of meeting these benchmarks. Council could dramatically reduce its 120 plus delivery operations to just a core number of programs – remember the good old days of Rates, Roads, and Rubbish?  This is what the Community told ESC via the Micro-mex community surveys not so long ago. 

On 16 October, there could be 4 possible verdicts that will change our local government:

1. We remain a Shire in our own right but implement significant structural changes to ensure that we meet the benchmarks for sustainability. E.g.:    We could reduce the number of service delivery programs that now stand at over 120. (Should we really be showing people how to cook and walk, building worm farms, and learning how to ride a motor bike?)
2.  We could dramatically reduce indoor staff numbers.


3.  We merge all / part of Eurobodalla Shire with either / both Shoalhaven or Bega Valley Shire 


4.  We enter into Joint Organization arrangements with neighboring Shires in an attempt to reduce operating costs -e.g. we could radically reduce costs by amalgamating many of our backroom services with other councils e.g. IT services.

The community need Eurobodalla Shire Council to lead the discussion on this. The ERA are listening, writing and organizing, but nobody at ESC seems to be interested, unless you read a weak article about the subject published by the Bay Post.

Surely, by now, the Mayor and Council should be organizing community meetings. The three casual drop in sessions at local markets and malls are not public consultation and Council is not taking any public submissions on the matter.

There is to be a meeting on May the 9^th in the Bay to discuss many of these issues, organized by a group of concerned Batemans Bay citizens. The ERA will be attending to listen to people’s views.

However let us have your comments on WHAT YOU WANT to happen to your council ASAP and we will include them in our Submission to IPART. This has to be completed by the third week of May.

Sincerely the ERA team

Eurobodalla – Not fit for the future?

Eurobodalla – Not fit for the future?

Eurobodalla Shire currently fails 4/5 criteria set by IPART for independent viability. Our Shire has an inadequate rate-able base to sustain its infrastructure and even basic essential council services, AND THIS SITUATION WILL WORSEN if jobs are lost and income generating residents are forced to leave.

Analysis of current and projected ABS economic data reveal that Eurobodalla fails the "Fit for the Future" fitness test and the forecast is for a downward spiral into poverty, business closures, forced relocations and community fragmentation. 

Eurobodalla residents have little to no capacity to sustain increased economic pressure:

Our economic profile:

55% of residents have an income < $1250 a fortnight
30% are retired, many are on fixed incomes 
< 10% of the Shire population earns over $2000 a fortnight, compared with the state average of almost 30% (2011 census). 
40% youth unemployment above NSW state average
30% of residents are employed (13300 out of 37600)

The average yearly income comparison:
NSW =$68000
Bega Valley = $45000 
Eurobodalla = $33000

Rates in the Eurobodalla:

Despite a compromised capacity to pay, our charges are higher than Bega and Shoalhaven. Councils’ debt projections are set to increase by $40 million over the next ten years, unless they are permitted to keep putting up the rates. This means repeated increases of 26% plus every four years. On top of the base average $800 p.a. rate are the other 43% of charges which include water and sewerage availability.

We need to increase our rateable base:

As Council already subsidises thousands of dollars in rate subsidies for those that cannot afford their rates, those that who can will have to pay more, as will businesses. But what happens if those people who can pay decide to leave the shire? Some commentators believe that 100,000 people are now the minimum number of people to sustain a local government area. With our reputation for obstructive and unresponsive local government, it is unsurprising that prospective investors and potential residents opt for the neighbouring shires.

Examples of the anti- development attitude include the attempts by investors to open a retirement village and run the airport. The Bunnings development took nearly eight years of negotiations sending a message to other companies not to waste time, effort and money considering Eurobodalla.

Our shire is seen by others as lacking in both foresight and economic development, and the requisite fiscal responsibility to sustain our own communities and environment. A risky place to commit to or invest in. Move on, nothing to see here.

Which brings us to the big question - are we Fit for the Future?

T Corp, the government’s financial arm, told us in 2013 that the economic outlook for the Eurobodalla Shire was rated as MODERATE, versus SOUND for Bega and Shoalhaven. With the underlying financial statement of long term losses, many councils have been told that unless they improve, they will die. ESC tenuously meets only 1 of the 5 criteria for viability.

Economic activity and sustainable jobs growth are the ONLY way to ensure a viable future for the whole community - especially our youth. Councils’ blatant misrepresentation that we are “forging ahead” is starkly illustrated in the table below:

Residential Building approvals figures comparing the Eurobodalla with Bega Valley and Shoalhaven shires since the turn of the century:

Year                          ESC    Bega   Shoalhaven

13-14                         174      168        524

12-13                         122      136        499

11- 12                         95       150        399

10-11                          83       180        486

09-10                        127       138        504

08-09                          91       119        378

06-07                        163         90        434

05-06                        236       150        460

04-05                        292       189        734

03-04                        419       215        993

02-03                        445       244        1065

01-02                        407       270        1168

 ( ***Shoalhaven are about 2.4 x the size of our population, Bega just slightly smaller)

This data begs the question...What happened to our Shire between 2007 -14? What was the planning departments’ agenda and policy direction during this timeframe? Government cannot create wealth - at best through sound policy, and allowing adequate growth, they preserve the capacity for enterprising communities to realize their potential.

Ask yourself a few questions:

What happens to this equation if those who generate the wealth leave?

Are you currently getting more or LESS service for your increased outlay compared to 5 years ago?

What are the services we get actually worth? What do they COST? what should they ACTUALLY COST?

Which services are essential and can only be, and should continue to be, provided by the council?

Which services and operations should council axe? How many unnecessary services are jobs for the boys?

What is the ERA position?

ERA assures you that there will be a scare campaign that unless we stay ‘as we are’ things will only get worse - such as the unproven claims by the mayor that we would have to pay higher rates if we amalgamate. Many in the ERA would like to see the council maintained, but changed dramatically to become efficient. Good management is a start. Others passionately believe that amalgamations are the only way forward. The problem is there is NO debate.

Community debate on a sustainable future lacking:

Will council comply with the directive to engage with the community towards a sustainable future? Perhaps like Victoria, the State government will have to step in and force through change because the local vested interests are too strong. Allowing the council to solve the problem on their own will be a disaster, as they cannot recognise there is a problem. It is a problem that may require substantial staff reductions and the discontinuation of a range of services and operations.

By now, Council should be in full discussion with its community on how it sees the council in the future, if there is to be an adequate debate by June 30^th. However there has been an irresponsible silence on the issue, despite Council having been instructed to engage with the community, to discuss everything from mergers of backroom services to amalgamations. This amounts to a failure to recognize the gravity of the situation.  So called efficiencies in closing tourism offices and associated personnel will save about 1% of the budget. Why is trivia being discussed and not the big picture?

What is the solution?

We need more wealth generating people to come and live here, and more wealthy people to visit, live and spend money here - at the moment, both these groups are being diverted to shires north and south by the policies and attitudes of our council.

Our local wealth generation is dependent upon tourism and hospitality, building, manufacturing and primary production. We need council to desist from stifling economic growth by withholding building approvals and business development that create real, meaningful sustainable jobs. We need council to facilitate the development of local enterprises, value adding to existing resources, and the building of local infrastructure. We need to be unencumbered from developing existing markets, products and services that other people value.

Perhaps the best result for the community would be for Eurobodalla Shire Council to cease to exist, if it cannot respond to meet the needs of the community, and chart a course for a sustainable future.