Deadline looms with no sign of council backdown

COUNCIL: Tomorrow’s deadline to nominate three preferences for council mergers will pass with Yass Valley Council remaining resolute it can remain independent if it raises rates and sells off assets.

Council aims to convince the NSW Premier’s Department it can become “Fit For The Future” by implementing three measures designed to make it financially viable by the 2024/25 financial year.

It has not nominated any merger preferences in the event its response is dismissed.

“Council has recognised that it must now take steps to address the negative Operating Performance Ratio in 2024/25 if it wishes to remain a stand-alone council,” council states in its response due in tomorrow.

To get council’s finances back into the black, it has told the Premier’s Department it will review its approach to receipting Roads to Recovery income, which will now be transferred from ‘capital income’ to ‘operational income’, making it “consistent with the majority of other councils”.

It will continue “to examine opportunities for efficiencies and savings of $600k over three years, land sales of $1 million over two years and is reviewing its borrowings, in accordance with its Fit for the Future submission,” council has submitted.

And thirdly, it will apply to implement a series of rate rises, as identified in its original Fit for the Future submission.

“These actions have positively impacted on council’s Long Term Financial Plan and ensured that we will have a positive Operating Performance Ratio by 2024/25,” council submits.

Mr Rowe and Yass Valley mayor Rowena Abbey did not say how confident they were that this response would work, but council is pinning its hopes on a comment included in the Independent Pricing And Regulatory Tribunal’s (IPART) assessment regarding scale and capacity, that notes there is no “identified evidence for a better alternative for council than to stand alone”.

“Yass Valley Council acknowledges that it met all Fit for the Future criteria with the exception of the sustainability criterion.

“Yass Valley Council will apply to IPART in February 2016 for a Special Rate Variation from 2016/17 as identified in its June 2015 Fit for the Future submission, with the objective of ensuring a positive operating performance ratio in 2024/25.”

Council also highlighted a 2013 recommendation by the Independent Local Government Review Panel to remain a stand-alone council.

When asked to nominate three potential merger preferences, Yass Valley Council has said, “all neighbouring councils assessed as unfit due to scale and capacity have identified more suitable merger partners. YVC doesn’t support any merger.”

Yass Valley Council has called an extraordinary meeting for tomorrow night to discuss how to explain the impending rate rise to constituents.

It will also look at the percentage of the rate rise and the number of years it will take.

It’s expected to be similar to council’s June submission at 37.2 per cent above the rate peg over five years (or a 50.4 per cent cumulative rise), with adjustments to cover the months already missed.

Council will then carry out nine community forums in various villages and towns to educate constituents about the rises.

Councillors argue even with the rise, Yass’ rates remain well below that of neighbouring councils.

“It is viewed that an SRV will strengthen our case to stand-alone in line with original Fit for the Future proposal,” Mr Rowe said.

With voluntary mergers now off the table, Yass is no longer eligible for the Stronger Communities Funding carrot that offered merger incentives of between $5 million and $15 million.

Mr Rowe told Scoop, “the funding carrot is a one-off merger incentive and is considered to be insignificant compared to the potential long term impact of being merged”.

Councillor David Needham agrees, saying, “If we are to merge with a neighbouring council, all I see is higher rates, higher than our proposed SRV, plus lower services, weaker representation and decisions made elsewhere. Decisions that are potentially not in the best interest of Yass Valley.”

Some ratepayers disagree, with Bec Duncan saying there are savings to be made with mergers by halving the number of executive management positions, for example, particularly given general managers alone earn between $213,000 and $260,000 per annum.

She was also concerned the community hasn’t been included in the decision-making process to stand alone rather than merge, like they have been in other areas such as Forbes and Goulburn.

Mr Rowe said, “We have spoken with our neighbouring  councils, however there are none that would provide a compatible merger option for Yass Valley due to geography and our proximity to the ACT”.

IPART announced its findings on October 20. Councillors voted unanimously to stand alone at their monthly meeting a week later on October 28, with councillors Cecil Burgess, Geoff Frost and Jasmin Jones voting against responding by raising rates.

Mayor Abbey was absent at the time due to a family commitment, but had always supported the need for an SRV so her vote would not have changed the outcome, Mr Rowe said.

Council workshopped IPART’s assessment last Wednesday in a meeting that was not open or advertised to the public, and the following day released a schedule of community forums to explain their position.

Community forums at 6:30pm:

• Tuesday, November  24 – Bookham Hall
• Thursday, November 26 – Sutton Hall
• Monday, November 30 – Wee Jasper Hall
• Tuesday, December 1 – Binalong Mechanics Institute
• Wednesday, December 2 – Gundaroo Hall
• Thursday, December  3 – Yass Memorial Hall
• Monday, December 7 – Bowning Hall
• Tuesday, December 8 – Wallaroo – Wattle Park Church Hall
• Thursday, December 10 – Murrumbateman Recreation Ground Hall

“These forums will provide ratepayers of Yass Valley the opportunity to understand the facts about what is being proposed for the SRV, as it appears that there is a lot of incorrect information in the community,” said Mrs Abbey.

“We also encourage residents and ratepayers to attend the forums as a way to speak directly with councillors and senior staff about questions they may have about their local community.”

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