The aim of the public forum was to provide residents with an update on his independent review into the financial sustainability of Federation Council and the advantages and disadvantages of amalgamation, and allow the community to provide feedback.
The meeting in Corowa - was the first of two meetings, the other in Urana on Tuesday, October 17. The Corowa meeting saw a packed Federation Room at Club Corowa, with councillors and council staff also present.
The decision to commission the independent review came after Cr David Fahey OAM’s Notice of Motion passed at the June extraordinary council meeting outlining the need for council to conduct a “health check”. Council resolved to take on the study, allocating $130,000 for the project. With a tender of $125,000 Professor Drew was awarded the job.
The move also followed months of lobbying by the Federation Ratepayers Inc following council pursuing consecutive Special Rate Variations.
At the meeting, Professor Drew posed three critical questions to the audience: Where are we now? How did we get here? And where can we go?
Professor Drew emphasised that the problems facing Federation Council weren’t too dissimilar from a number of amalgamated councils from 2016 while also acknowledging that problems didn’t arise overnight but have been decades in the making.
Based on his extensive research, Professor Drew shared those amalgamations in NSW had resulted in increased costs, with overall costs going up by 11 percent and staff costs climbing by 15 percent.
He debunked the misconception that larger councils are more efficient and save money, suggesting that making councils bigger can lead to diseconomies of scale, reduced transparency, an increase in middle and senior management roles, and higher salaries. Larger councils, he argued, are less sustainable.
“I’m not suggesting for a second that Federation should de-amalgamate,” he said.
“This is just an observation based on the fact that you were incorrectly told that by amalgamating you would save a lot of money.”
He also pointed out that in recent years, councils have often prioritised wants over needs and succumbed to pressure from residents, leading to more financial challenges.
Based on the data he presented, Professor Drew does believe the tide is turning for Federation Council thanks to recent grant income streams and less spending.
“What I want you to take away from this is that the problems didn’t just occur. The problems were there pre-amalgamation and built up over many decades because a number of different causes,” Professor Drew said.
“One thing of note is that your greatest asset is in relatively good shape…. that is your staff.
“I’ve seen councils with no staff, and that is not a situation you want your council to be in.
“Your staff and your councillors want the best Federation as well and I am confident in their ability to turn the ship around.”
The meeting concluded with ratepayers expressing their views and offering feedback. Questions were asked about incentives for council to perform better, whether council should seek other forms of income and why the review wasn’t going into the specifics of financial mismanagement. The community was also encouraged to fill out a survey to help Professor Drew with the final stages of his report.
Professor Drew will present over 60 recommendations for Federation Council to consider. This report is expected to be handed to council in November and will be brought up at a subsequent council meeting.
Professor Drew’s message to ratepayers was one of confidence in a brighter future for Federation and trust in the capabilities of Federation Council staff and councillors encouraging a “spend less, earn more” philosophy, determine wants over need and get back to basics.
