The Young Aquatic Centre was the centre of cost blow outs in 2019 with an asbestos clean up cost of $667,640. A figure not accounted for in original costings of the project. The clean up commenced before Councillors had approved the clean up, or the point of disposal.
See attached link and page. Page 20 for the Hilltops Council business paper.
https://www.hilltops.nsw.gov.au/council/council-meetings/
Hilltops Residents and Ratepayers and employees at the forcibly merged Council will be met with what may be the largest and most cruel impost they have been forced to endure since the May 12, 2016 forced amalgamation, when Council meets on Wednesday night, next week.
Some in the community have been hoodwinked by the State Government, while others have kept their eyes wide open over the last 5 years and have seen what is coming ‘drive over the horizon at them’.
The General Manager’s report recommends a series of 6 suggestions that if voted for in a majority by Hilltops Councillors may see the following occur.
(a) Authorise the General Manager to implement an immediate staff and wage freeze allowing only for recruitment of essential positions.
(b) Commence a review of the use (sic) consultants and contractors to maximise efficiency and contain costs
(c) Implement a staff cost reduction equivalent of up to 30% of total council wages
(d) Commence discussion with the community regarding levels of service within Council’s policies and financial limitations
(e) Immediately identify assets suitable for divestment purposes for Council to consider in a confidential report
(f) Following the Local Government elections, immediately commence discussions regarding the consideration of a Special Rate Variation to be enacted in the 2024 financial year.
Point B highlights what many Councillors have wanted for years now, which is a review into the costs of consultants. A small number of the same consultants have been used on a number of Council’s jobs, while the TechOne Local Government computer system is still not working to its full potential after more than 4 years, costing millions of dollars.
Point E and the word ‘divestment’ could be replaced with the words ‘fire sale’.
Already run with a ‘skeleton staff’, both Harden and Boorowa offices could be on the chopping block.
With Council assets worth more in Young due to land values, it’s also likely that Young will see assets sold.
The most damning measure could be the ‘implement staff reduction equivalent of up to 30% of total Council wages.
This means that with a workforce nudging 270, Council may remove up to 90 positions or rework those position to be on varying salaries. It is understood that many of these position will go from the Young area. Workplace accidents and injuries have already been on the rise over the latter part of this term of council with a number of vehicles being written off in accidents.
Council assets which include community owned land or buildings under Council control could be put up in a fire sale to quickly recoup money to send the Council’s financials back towards the black and away from what is a rolling deficit of over $45 million as of last financial year, however, this will be a quick sugar fix to a larger problem and may rob those living in the Hilltops of valuable assets that once sold, will unlikely ever be replaced or reinstated.
The icing on the cake for residents will be point (f) which states “Following the Local Government elections, immediately commence discussions regarding the consideration of a Special Rate Variation to be enacted in the 2024 financial year”
Neighbouring Council Cootamundra-Gundagai Regional Council implemented a rate rise of 53.5% over 4 years. Within IPART’s summary regarding CGRC there is a list of genuine concerns and issues raised by stakeholders during the application, and one highlighted that the rate increases were going to be “too high and unaffordable”. CGRC’s rolling deficit was approximately $27 million when they implemented their increase. This may see rental costs sky rocket as land and home owners pass these costs on to renters in what is already a high cost and highly competitive market.
A recent story by the times highlighted he high number of residents seeking assistance from local organisations just to get by.
According to the Council report, “Council has reviewed the different triggers that impact revenue and expenditure and identified the following controllable variables: staff costs(and service levels), Capitalisation of staff, Materials & Contracts, Realignment of depreciation against assets to be commissioned, Realignment of borrowing costs to reflect loan repayments,Fees and charges (including leases and licenses) Rates and the application of a Special Rate Variation (“SRV”)”
The rates harmonisation process has proven to be a short term fix and less than harmonious. Now that Rates have been levelled out, it appears that a large SRV will be on the table, however, it should have been brought to the community’s attention months, if not years ago. CGRC as unpopular as it was when making the decision, at least conducted their decision and consulted the community while they had an experienced Council. Hilltops, if it not under administration by next year, according to the report, will expect the SRV to be conducted with a new and most likely 50% inexperienced set of Councillors as one of their first items in their first terms. An unenviable task and something that would deter many wanting to make a positive difference in their community and run in the upcoming election.
According to the report, Council is continuing to rely on a grants approximation of $16.8 million from what is state and federal money. With Steph Cooke now ‘safely’ holding the seat of Cootamundra, many would expect state government grants to dry up over the next couple of years as the government spends money on more bellwether seats such as Wagga. Dr Joe McGirr is an example. McGirr managed to win the seat off the coalition after former MP Daryl Maguire resigned in a swing that saw McGirr get over the line with a 29 swing of the vote in his direction.
The Report detailed “12.1 – 21/206 – HILLTOPS COUNCIL FINANCIAL SUSTAINABILTY AND OPTIONS ANALYSIS Responsible Officer: General Manager
