Structural Reform Review

In July, Gnowangerup, Jerramungup and Ravensthorpe jointly commissioned a study on reform options. The study looked at a range of options, examined the finances, sought community input into preferences and included a number of workshops with both the community and councillors.

The study is now complete. It has found that there are a range of benefits in council considering an amalgamation with the Shires of (Gnowangerup and Jerramungup and Ravensthorpe).

As a single council, there will be opportunities to:

• Reduce overhead costs of running the council;
• Use some equipment more efficiently;
• Provide staff with a career path;
• Employ specialist staff;
• Add value to existing services; and
• Lobby state and federal government with a stronger voice.

Consultation

Approximately forty members of the community throughout the region attended workshops (excluding elected members) and a further thirty provided a written comment. As was to be expected, the views expressed were varied. However, there are some factors in common which should be considered in the context of reform options:

• The role of local government in being a local employer and working with the community to develop a sense of place should not be under-estimated;
• The role of local government in filling service gaps left by inadequate support from other levels of government should also be acknowledged;
• There are opportunities for better utilisation of human and physical resources which should be explored;
• The best outcome for the region as a whole may not necessarily be the cheapest outcome but will see an improvement and consistency in the level of service delivered;
• There are opportunities to be smarter in the way the local governments do business, deliver services and work with the community to engender and build on a sense of community;
• Climate change and soil salinity has brought about changes to farming practices and will bring about changes to the kinds of agricultural activities which predominate in the region;
• The tourism potential of the region, especially eco-tourism, scientific exploration and adventure tourism may be the economic sleeping giant for the region.

In our case, the key concerns regarding an amalgamation are:

• The smaller towns within the area might suffer by being forgotten ignored or relegated to second or third place in the budget consideration stakes;
• The role of the local government as a major employer in the region will diminish; and
• The council will be less accessible to the community.

In contemplating an amalgamation, then these key concerns need to be addressed.

Financial Implications

The combined governance costs of the three councils is around $1.8 million per year. This equates to an average of $397 per resident and is substantially higher than a number of neighbouring councils and other councils of similar size and characteristics.

There is unlikely to be a reduction in staffing levels amongst the outside workforce if an amalgamation takes place, indeed, there may be the opportunity to increase the staffing levels.

Amongst the office based staff, there is like to be a similar number of staff employed with a slightly different mix of skills.

There are opportunities for rationalising specialist equipment and reducing the reliance on external consultants for specialist services like town planning, engineering and information technology support.

Timing

It will take two years to prepare the three local governments for an amalgamation. During this time, there are a number of major steps which need to be taken. These include:

• Getting the same accounting methods in place;
• Getting the same asset management software in place;
• Developing an organisational plan;
• Identifying plant and equipment needs and working towards making sure that the plant and equipment we have meets our needs;
• Examining our local laws and policies and working towards a common set of local laws;
• Reviewing policies under our district planning schemes and reaching agreement on what is best for the region as a whole;

Amalgamation FAQ

Why is council examining the option of amalgamation?
The Minister for Local Government requires that all local governments review their structure and come back to him with an amalgamation plan by 31 August 2009.

What happens if you don’t?
The Minister has indicated that while there will be no forced amalgamations, the current grants process which provides up to 50% of council’s income will be reviewed and that grants may not be provided to councils which are considered to be unsustainable in the long term without an amalgamation.

How much money are we talking about?
For the three councils combined, we currently receive about $4.7 million per annum in grants. This would reduce to about $1.6 million per annum combined, or a drop of around $3.2 million annually.

How much will amalgamating cost?
We estimate that the process, over three years, will cost about $2.5 million in dollars and substantial additional staff time if we do it properly. If the amalgamation proceeds, we will be asking the state government to contribute that amount of money to the process.

What will happen to the current offices?
It is our aim to keep all the offices open and to ensure that the services that most people want when they arrive at the office are available. This includes such things as licensing, planning inquiries and applications for various services and permits.

How will an amalgamation affect me?
We will continue to provide all the services you currently expect and enjoy and may have the opportunity to add a few, such as improved waste services, and a strengthened support for the volunteer bush fire brigades.

What advantages other than financial are there to an amalgamation?
A larger council can provide a better career path for staff and so attract and retain good staff more effectively. A larger council has a stronger lobbying voice with government.

What would an amalgamated council be called?
If the amalgamation goes ahead, a new name would be subject to community consultation.

Would my local number plate change?
We don’t anticipate that the number plating system would change. There may be a new, additional number plate for residents who would like one.

How many councillors would the new council have?
It is recommended that the new council would have three wards each with three councillors. Each ward would be the existing local government boundary in the first instance.

Can I read the full report?
The full report is available here.