Glenn Handford, Interim General Manager of the newly formed Mid Coast Council, provided an update on the merger status to an audience of about 60 people at the TG Baptist Hall on June 21st. Four ex-councillors, Lisa Schiff, the GLC's Director of Planning and John Turner, the appointed administrator were in attendance.
The new council now covers over 10,000 sq km with a ratepayer base of 90,500.
Mr Handford employed his usual polished and confident style to take us through a lengthy power point presentation - the agenda the Council's new officials and community representatives are pursuing to implement and cement the merger process.
In summary, the agenda was about the financial and operational state of the game at 'handover', and the plans the interim administration are developing to build a new sustainable council.
No time was given to providing an explanation for the way the controversial merger process was conducted. I think it's fair to say that the impression GLC ratepayers were given was that the unstated goal of the exercise was to employ GLC's strengths to prop up and eventually bail out the financial and infrastructure problems of the other two councils.
And indeed, one of Mr Handford's overheads indicated very sizable backlogs in infrastructure maintenance of both Taree and Gloucester councils which critically undermined their financial sustainability. These were the figures that were apparently reported to the State Government's merger review board, leaving no doubt that a merger or massive funds injection would be necessary.
However, according to a very brief and not well explained comment from Mr Handford, it now seems that these backlogs may have been grossly (and irresponsibly?) overstated. So things probably weren't so bad after all! Well, well.
Nonetheless, Mr Handford posted a fairly gloomy picture of the likely mid to long term health position of the merged council. Despite government support of $5m for implementation and $14m for infrastructure programs, he projected an accumulated funding shortfall of $27.3m in 5 years.
So you ask, was there any good news for the ex-ratepayers of the ex-GLC? Just a tiny bit.
As things are, rates are currently on hold (no increases) until the integration process is considered complete (the objective being September next year, I think, when new councillor elections will be held).
Prior to the dismantling of the three councils, the GLC had successful applied to IPART for a special rate variation (SRV) of 20.7% over 4 years This was after community consultation and, we're told, general acceptance by GLC ratepayers. This increase was however voided by the pending merger process. GLC's SRV contrasts with a 49.2% increase over 6 years applied for by Taree and a 39% increase over the years 2018-2019 applied for by Gloucester, neither of which were accpeted by IPART.
The new MCC officials are working on a plan which includes a new SRV application to IPART for the same 20.7% agreed for GLC, but across the board for all ratepayers.
This is intended to dispel concerns, I guess, that we won't be asked to bail out the others. But, given what we were originally led to believe about the others, and with the $27.3m 5-year shortfall ahead, this is shallow assurance.
In closing, Mr Handford addressed the audience by asking by what means we felt the MCC could best provide progress updates and elicit feedback from the community on perceived needs and priorites. However we didn't need to answer that question as he then told us it would be done by regular (monthly) meetings between the Interim Advisory Group and the regional communities or their representatives. Deja vu the merger process?
Mr Handford's full presentation can be viewed below.
Tony Hann
