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TOWN AND SHIRE OF
NARROGIN MERGER SUMMARY
REPORT - OCTOBER 2014
TABLE OF CONTENTS
Contents
Introduction ______________________________________________________________________________________________ 1
Business Case _____________________________________________________________________________________________ 2
Key Points _________________________________________________________________________________________________ 3
Rates ________________________________________________________________________________________________________________ 3
Elected Members __________________________________________________________________________________________________ 3
Commissioners_____________________________________________________________________________________________________ 4
Employee Arrangements __________________________________________________________________________________________ 4
CEO Arrangements ________________________________________________________________________________________________ 4
Merger Method ____________________________________________________________________________________________________ 5
Council Name ______________________________________________________________________________________________________ 5
Lead Agency ________________________________________________________________________________________________________ 5
Head Office Location_______________________________________________________________________________________________ 5
Depot Location _____________________________________________________________________________________________________ 6
COMMENCEMENT Date ___________________________________________________________________________________________ 6
Funding Matters ___________________________________________________________________________________________________ 6
Loans _______________________________________________________________________________________________________________ 7
Reserves ____________________________________________________________________________________________________________ 7
Summary __________________________________________________________________________________________________ 8
Contact Information ______________________________________________________________________________________ 9
TOWN AND SHIRE OF NARROGIN MERGER
Introduction
Following years of concern about sustainability, national reform initiatives, WA Local Government
Association’s Systemic Sustainability Study, in early 2008 the then Minister for Local Government Hon. John
Castrilii MLA, announced sector wide reform was to be undertaken.
After several years of minimal progress, the Minister announced the formation of Regional Transition
Groups and Regional Collaboration Groups. Essentially, RCGs were to be groups of remote and pastoral
Councils where it was accepted that merger was not feasible due to distances between population centres.
The clear and stated intention of RTGs in the agricultural and south west areas however, was that the
Councils would work towards merger, and funding was made available to Councils who voluntarily formed
an RTG.
The Town and Shire of Narrogin have been progressing the proposed joining of the two Council’s over
several years which initial included the Shires of Wickepin and Cuballing. Not long into the process the
Shire of Wickepin withdrew from the Regional Transition Group and later the Shire of Cuballing also
removed from a poll that was called from its community.
With the Town and Shire progressing talks the Business Case was reworked and completed in February
2014 by Mr Niel Mitchell the then “Project Manager”. Since that time there have been discussions with the
State Government regarding the amount of funding that was requested to be funded and what the State
offered the Councils. The final amount offered is $1,212,000 to be utilized on the merger requirements. It
must be noted that this is lower than the amount requested by the Council’s; however, both Councils have
resolved to progress with this funding and commence consulting with the Communities for the final time.
This consultation period will be facilitated through the advertised re-release of the Business Case
Document, this Merger Summary report and a general public meeting to be held on the 27th October 2014.
Please note that written submissions can also be presented to the CEO of the Town of Narrogin until the
close of business on the 29th October 2014. The comments received from the public meeting and the
written submissions will then be compiled for Council to review and form a formal resolution as to the
commitment to proceed to writing to the Local Government Advisory Board requesting the two Councils
merge.
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TOWN AND SHIRE OF NARROGIN MERGER
Business Case
It must be stated that a full reworking of this document has not been undertaken; however, specific items
that are now outdated have been reviewed and marked within the document so that persons who have
reviewed the previous document can identify the changes.
The Councils resolved to accept the Business Case earlier in 2014 but due to the time that it has taken to
deal with the State in regards to the funding amount the issues of matters like dates and other statements
within the document have been required to be reviewed so that the community members are able to review
more up to date information to base their comments and submissions on.
It must be stated that the bulk of the document remains the same as the intent and commitment from the
Councils to the process remain.
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TOWN AND SHIRE OF NARROGIN MERGER
Key Points
The major facets of the merger are outlined below.
It must be noted that the information below has been resolved and accepted as a negotiated commitment to
the process by both Councils. All matters raised below are presented in more detail in the Proposal for
Boundary Change report.
RATES
Through the process of negotiating the merger with the Shire of Narrogin it was agreed by both parties very
early on that the rates within the Town are high and that the rates within the Shire are very low for industry
standards and it was required for the rates to come to parity.
Due to this it was resolved that the rates within the Town would be the benchmark for the Gross Rental
Value Properties (Residential Properties) and that the Shire of Wagin would be utilized as the basis for the
UV (Farm Land Properties) as it represented a fair comparison to the region. With the increases identified it
was proposed by the Shire that this additional increase to parity would occur over a 10 year period. The
duration of the parity period is at the discretion of the Minister of Local Government and or Governor.
It is hoped that once the Councils merge that the rate increases within the Town can remain low as this will
assist in the parity of the rates occurring quickly and will assist in bringing the Residential rates into
relation with other Regional Centres.
[Section 9 of the Proposal]
ELECTED MEMBERS
It is proposed that in the month of May of the merging year that all the Elected Members resign from their
positions to facilitate the appointment of Commissioner’s to the new entity. Once the new entity is formed
an election will be held in October of that year to facilitate the appointment of Councillors.
At the initial election the representation has been agreed that it will be made up of 4 positions from the “old
Town of Narrogin” and 4 positions from the “old Shire of Narrogin”. At the next election held in 2017 it is
accepted that the wards will be abolished opening the election up to any elector within the new entity. The
number of Councillors will increase from 8 to 9.
The elected head is to be a Shire President and will be elected internally from the elected Councillors.
[Section 4 of the Proposal]
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TOWN AND SHIRE OF NARROGIN MERGER
COMMISSIONERS
As stated the Commissioner’s will be appointed prior to the merger taking effect to provide some
consistency to the governing of the local governments new and old. It has been resolved that the
Commissioners will be made up of 5 being two resigning Councilors from both of the Town of Narrogin and
Shire of Narrogin and 1 independent Commissioner that will be recommended and appointed by the
Minister of Local Government.
The Commissioners will remain in place until the conclusion of the first election of the new entity which will
be October of the merger year.
Commissioners perform the same role and have the same powers and responsibilities as Councillors within
the Local Government. The Council meetings will remain the same and will continue to be facilitated at
similar times.
[Section 4.6 of the Proposal]
EMPLOYEE ARRANGEMENTS
All staff in all locations will be offered employment in the new entity within either the same position that
they currently hold or an appropriate negotiated alternative if required.
The total salary or pay package (i.e. pay, allowances and benefits) will be maintained, although the
components of the package may be varied so as to achieve consistency across the new entity.
The employee will be offered appropriate work and of a similar level, subject to –transfer to different
employment, by negotiation, support and training being provided as necessary.
Where similar positions have a remuneration discrepancy, that the total benefit package to apply will be the
higher level.
While the Local Government Act provides a guarantee of employment for two (2) years after a merger, this is
subject to continued satisfactory performance by the employee.
[Section 5 of the Proposal]
CEO ARRANGEMENTS
The existing CEO’s, as per the current Business Case will both resign from their positions to accept a
position as a Director of the new entity as of the 30th June 2015. It is noted that with the early appointment
of the Commissioners an appointment of a temporary/acting CEO will be made to hold office from 1st July of
the merging year, for a period up to 12 months.
The Town and Shire of Narrogin will recommend to the Commissioners that the Acting Chief Executive
Officer be appointed from one of the former Chief Executive Officers.
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TOWN AND SHIRE OF NARROGIN MERGER
The CEO’s, as per all other employees will accept their Directors role without loss of benefit or entitlements,
and both will be eligible for consideration as the Acting Chief Executive Officer and for appointment as the
permanent Chief Executive Officer. The process for the recruitment of the permanent Chief Executive Officer
likely to be initiated by the new Council after the initial election has been held and Councillors sworn in.
[Section 5 of the Proposal]
MERGER METHOD
Much assessment went into the method of the Councils to join and it was resolved by the Councils that the
preferred method would be by a Merger.
The main reasoning was that with the amalgamation that included the Shire of Cuballing that the only poll
that was called was within the Shire of Cuballing and, as such, the Shire of Narrogin community was quite
happy to progress the proposal.
The Merger is quicker and easier for the new entity to become operational and would be far more cost
effective.
[Section 12 of the Proposal]
COUNCIL NAME
Both Councils have considered the name of the new entity at length. It was agreed early that the new entity
should be a “Shire” and should have the name Narrogin within it.
From this it was agreed that the name would be the “Shire of Narrogin”.
[Section 4 of the Proposal]
LEAD AGENCY
With the Town of Narrogin being the larger of the two entities it was agreed that to reduce the level of
complications occurring through the merger process that the Town of Narrogin be the lead agency and that
once the merger is finalized that a name change occur within a certain period of time.
[Section 4 &12 of the Proposal]
HEAD OFFICE LOCATION
With the existing Town of Narrogin office being located at 89 Earl St, the administration of the new entity
would be located at this location as no other facilities exist that would be appropriate to accommodate all
staff members.
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TOWN AND SHIRE OF NARROGIN MERGER
It has been proposed that some alterations to the office internally would need to occur and in the short to
medium term it may be required for the further additions to be made. Grants for these works will be
applied for to attempt not to incur cost to the Ratepayers of the new entity.
The existing Shire Administration Centre may be utilized for certain purposes; however, if surplus to
requirements alternative arrangements like leasing may be considered.
[Section 11 of the Proposal]
DEPOT LOCATION
With the Town of Narrogin Depot being located out of the Old Goods Shed on Fairway St, it has been agreed
that the Town’s Depot Staff be relocated to the Shire of Narrogin Depot located at Lydecker St.
The Parks and Gardens shed located at the Clayton Road Oval will be retained for this continued purpose.
Due to the excellent facilities at the Lydecker St Depot certain other works associated staff may also be
located at this site initially, although it is preferred to have all administration staff located at the
Administration Centre.
[Section 11 of the Proposal]
COMMENCEMENT DATE
As has already been stated the proposed commencement date that is being aimed at is the 1 st July 2015.
With this date fast approaching both Councils are continuing to work for this goal. However, it must be
noted that this may not be achievable due to the release of the required funds and then subsequent
availability of key contractors and consultants namely in financial accounts and budget establishment and
corporate financial operating system and the appointment of the Project Manager.
[Various Sections including 12 of the Proposal]
FUNDING MATTERS
It has always been raised that there are concerns over ongoing funding and grants potentially reducing in
the future for the new entity. It must be stated that this concern has not been removed; however, some
safeguards have been implemented.
Regional Road Group funding has been negotiated with the committee that the new entity would be entitled
to 75% of the two maximum funding allocations that would have been applied to the ceased Councils for a
period of three years after the merger date. This is a far better outcome than the proposed 100% of the last
three year average and allows for the new entity to apply for an additional $100,000+ per annum. After this
time the new entity will be considered as one and the funding opportunity will be reduced to one allocation.
Page 6
TOWN AND SHIRE OF NARROGIN MERGER
Royalties to Regions is a factor that is hard to assess as to the real impact on the new entity. All indications
are that the new entity will have potentially more ability to apply for larger grants which could greatly
benefit the community. However, it is expected that no negative impact will be seen in this grant area.
Roads to Recovery is linked with the Financial Assistance Grant as well as preservation models and the
quality of the road data that the Council maintains. It is hoped that with the additional service delivery of
the new entity that this grant should not reduce and may have the potential to increase.
Financial Assistance Grants have been frozen by the Federal Government which is a concern in itself for the
future of the funding which is integral to all Local Governments. The new entity is guaranteed a five year
grace period on this grant to ensure that it does not reduce. Other Councils that have amalgamated have
seen limited impact in this area or event he grant increasing.
[Section 8 of the Proposal]
LOANS
There has been a strong misconception that the Town is riddled with debt due to the Leisure Centre. This
has been incorrect now for many years and the report details that the loan coverage per assessment is far
lower for the Town of Narrogin as compared to the Shire. In essence though neither Council has excessive
amounts of loans and the new entity would not be burdened by the current debt.
[Section 8 of the Proposal]
RESERVES
The Town has worked hard to build its Reserves over the last few years and have achieved a far greater
sense of security over its assets financially through doing so. Further allocations is required into the future
but again the myth that the Town will benefit by gaining access to the Shires Reserves is completely
unfounded.
The Town have in the last two years commenced allocating unspent grants to Reserves which created
financial hardship for two rating period but now clearly allocates this funding for the specific purpose and
protects Council from future issues. As such the Towns Reserves are quite high but these allocations are
protected in the merger as with committed funding within the Shires Reserves.
[Section 8 of the Proposal]
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TOWN AND SHIRE OF NARROGIN MERGER
Summary
The Town of Narrogin in consultation with the Shire of Narrogin have worked over a long period to get to
this point in the process. It must be noted that several issues have been required to be negotiated between
the two Councils to ensure that the process is fair and equitable to both communities.
The Councillors of the Town have resolved to progress with the merger following the input from its
ratepayers ad residents from the Public Consultation session that is to be held on the 27th October 2014 at
the Town Lesser Hall commencing at 7pm and will also receive written submissions until the close of
business on the 29th October 2015.
The results of the consultation period will be compiled and presented to Council for consideration at the
Ordinary Council Meeting on or around the 11th of November 2014. Should a special Council Meeting be
required this will be advertised locally.
Should you require any additional information please utilize the contact details of the Mayor or CEO as listed
below. Other Councillors can also be contacted.
Page 8
TOWN AND SHIRE OF NARROGIN MERGER
Contact Information
LEIGH BALLARD
MAYOR
AARON COOK
CHIEF EXECUTIVE OFFICER
Tel 0428 832 095 Mobile
mayor@narrogin.wa.gov.au
Tel 9881 1944
ceo@narrogin.wa.gov.au
Should you wish to contact other Councillors their contact details are available on the Town of Narrogin
Website.
Page 9
Shire and Town of Narrogin Proposal for
Boundary Change/Merger Documentation
Notice to Reader
The preparation of this version of the Proposal for Boundary Change Document (dated October
2014) has been based on an earlier version (dated January 2014). The purpose of the revision
is to provide an update for the community and ultimately the Local Government Advisory
Board if the Shire and Town Councils chose to proceed. Every effort has been made to
incorporate the changes necessary to make the document relevant, (errors & omissions
accepted). Please note that the revision has not incorporated the working tables that appear
as an addendum to this report and the tables are provided for general information only (all
figures remain as per the January 2014 version of the Report).
PROPOSAL FOR BOUNDARY CHANGE
Shire of Narrogin
and
Town of Narrogin
Draft v. 10
October 2014
Shire and Town of Narrogin
Proposal for Boundary Change– draft v.10
– Page 2 –
CONTENTS
1
INTRODUCTION ............................................................................................................................... 4
1.1
Context................................................................................................................................... 4
1.2
Cuballing-Narrogin-Wickepin Regional Transition Group ...................................................... 4
1.3
Cuballing-Narrogin-Narrogin Regional Transition Group ....................................................... 4
1.4
Narrogin Shire and Town – Proposed merger ....................................................................... 4
1.5
Scope of Report ..................................................................................................................... 5
1.6
Purpose of Report .................................................................................................................. 5
1.7
Abbreviations and Definitions ................................................................................................ 6
1.8
Merger v. Amalgamation v. Boundary change ....................................................................... 6
2
EXECUTIVE SUMMARY ................................................................................................................... 7
3
STRATEGIC DIRECTION ................................................................................................................. 9
3.1
STATISTICS .......................................................................................................................... 9
3.2
COMMUNITY OVERVIEW .................................................................................................... 9
3.3
STRATEGIC COMMUNITY PLANNING.............................................................................. 10
3.4
CORPORATE BUSINESS PLANNING ............................................................................... 11
3.5
STRATEGIC DIRECTION – SUMMARY ............................................................................. 12
4
DISTRICT ........................................................................................................................................ 13
4.1
NAME AND BOUNDARIES ................................................................................................. 13
4.2
WARDS ............................................................................................................................... 14
4.3
REPRESENTATION ............................................................................................................ 14
4.4
ELECTED MEMBERS – PAYMENTS ................................................................................. 15
4.5
BOUNDARY CHANGE EFFECTIVE DATE......................................................................... 16
4.6
TRANSITION ARRANGEMENTS – COMMISSIONERS .................................................... 16
5
HUMAN RESOURCES & CHANGE MANAGEMENT .................................................................... 18
5.1
WORKFORCE PLANNING ................................................................................................. 18
5.2
STAFF PROFILE ................................................................................................................. 19
5.3
AWARDS AND EMPLOYEE ENTITLEMENTS ................................................................... 21
5.4
WORKFORCE GAPS AND RISKS ..................................................................................... 22
5.5
CEO ARRANGEMENTS ...................................................................................................... 24
5.6
LEGAL AND STATUTORY REQUIREMENTS .................................................................... 25
5.7
FUTURE WORKFORCE ..................................................................................................... 26
5.8
HR AND CHANGE MANAGEMENT – SUMMARY ............................................................. 28
6
OPERATIONAL MATTERS ............................................................................................................ 29
6.1
STATUTORY PLANNING.................................................................................................... 29
6.2
LOCAL LAWS ...................................................................................................................... 29
6.3
AUTHORISED OFFICERS .................................................................................................. 30
6.4
DELEGATIONS AND POLICY ............................................................................................ 31
6.5
SERVICES DELIVERED ..................................................................................................... 32
6.6
CONTRACTS, LEASES, AGREEMENTS ........................................................................... 33
6.7
INSURANCES ..................................................................................................................... 34
6.8
OPERATIONS – SUMMARY ............................................................................................... 34
7
SYSTEMS........................................................................................................................................ 36
7.1
ICT ....................................................................................................................................... 36
7.2
RECORD KEEPING ............................................................................................................ 37
7.3
HR AND PAYROLL.............................................................................................................. 38
7.4
CHART OF ACCOUNTS ..................................................................................................... 38
7.5
RATING ............................................................................................................................... 39
7.6
ASSET MANAGEMENT ...................................................................................................... 39
7.7
ROAD DATA ........................................................................................................................ 39
7.8
SYSTEMS – SUMMARY ..................................................................................................... 40
8
FINANCE ......................................................................................................................................... 41
8.1
LONG TERM FINANCIAL PLANNING ................................................................................ 41
8.2
FINANCIAL ASSISTANCE GRANTS .................................................................................. 42
8.3
ROAD GRANTS .................................................................................................................. 43
Shire and Town of Narrogin
8.4
8.5
8.6
8.7
8.8
8.9
9
Proposal for Boundary Change– draft v.10
– Page 3 –
OTHER GRANTS ................................................................................................................ 45
RESERVE ACCOUNTS ...................................................................................................... 46
LOANS – PRINCIPAL OUTSTANDING & ANNUAL REPAYMENTS.................................. 47
FEES AND CHARGES ........................................................................................................ 48
ANNUAL BUDGET .............................................................................................................. 49
FINANCE – SUMMARY ....................................................................................................... 50
RATE MODELLING ........................................................................................................................ 51
9.1
COMPARISON SHIRES ...................................................................................................... 51
9.2
UNIMPROVED VALUE ........................................................................................................ 52
9.3
GROSS RENTAL VALUE .................................................................................................... 53
9.4
DIFFERENTIAL RATES ...................................................................................................... 53
9.5
DISCOUNTS AND INCENTIVES ........................................................................................ 54
9.6
RATES INSTALMENTS....................................................................................................... 54
9.7
PENALTIES AND CHARGES .............................................................................................. 55
9.8
RATES – SUMMARY........................................................................................................... 55
10 REFUSE AND RECYCLING SERVICES ........................................................................................ 57
10.1 COMPARISON SHIRES ...................................................................................................... 57
10.2 REFUSE AND RECYCLING ................................................................................................ 57
10.3 REFUSE AND RECYCLING – SUMMARY ......................................................................... 58
11 INFRASTRUCTURE AND ASSETS ................................................................................................ 59
11.1 ASSET MANAGEMENT PLANNING ................................................................................... 59
11.2 INFRASTRUCTURE ASSETS – ROADS ............................................................................ 61
11.3 INFRASTRUCTURE ASSETS – BUILDINGS AND STRUCTURES ................................... 61
11.4 ADMINISTRATION CENTRES ............................................................................................ 62
11.5 WORKS DEPOTS ............................................................................................................... 62
11.6 PLANT AND FLEET ............................................................................................................ 63
11.7 INFRASTRUCTURE AND ASSETS – SUMMARY.............................................................. 63
12 MERGER METHOD ........................................................................................................................ 65
12.1 LEGISLATION ..................................................................................................................... 65
12.2 FORMAL AMALGAMATION ................................................................................................ 65
12.3 BOUNDARY CHANGE ........................................................................................................ 66
12.4 MERGER METHOD – SUMMARY ...................................................................................... 67
13 TRANSITION ................................................................................................................................... 69
13.1 TRANSITION PLAN AND BUDGET .................................................................................... 69
13.2 PRE-MERGER ALIGNMENTS ............................................................................................ 69
13.3 PRE-MERGER ARRANGEMENTS ..................................................................................... 69
13.4 MERGER INCENTIVES ...................................................................................................... 70
13.5 TRANSITION SUMMARY.................................................................................................... 71
14 SWOT OVERVIEW .......................................................................................................................... 72
14.1 REMAINING SEPARATE .................................................................................................... 72
14.2 MERGER THROUGH BOUNDARY CHANGE .................................................................... 72
15 RECOMMENDATIONS ................................................................................................................... 73
15.1 TO SHIRE AND TOWN ....................................................................................................... 73
15.2 FOR GOVERNOR’S ORDERS............................................................................................ 74
16
ENDORSEMENT ............................................................................................................................. 76
INDEX TO TABLES AND CALCULATIONS
Shire and Town of Narrogin
1
INTRODUCTION
1.1
Context
Proposal for Boundary Change– draft v.10
– Page 4 –
Following years of concern about sustainability, national reform initiatives, WA Local Government
Association’s Systemic Sustainability Study, in early 2008 the then Minister for Local Government Hon.
John Castrilii MLA, announced sector wide reform was to be undertaken.
After several years of minimal progress, the Minister announced the formation of Regional Transition
Groups and Regional Collaboration Groups. Essentially, RCGs were to be groups of remote and pastoral
Councils where it was accepted that merger was not feasible due to distances between population
centres. The clear and stated intention of RTGs in the agricultural and south west areas however, was
that the Councils would work towards merger, and funding was made available to Councils who
voluntarily formed an RTG.
1.2
Cuballing-Narrogin-Wickepin Regional Transition Group
The CNW RTG was established in October 2010 with four participating local governments –
Shire of Cuballing
Shire of Narrogin
Town of Narrogin
Shire of Wickepin
A Board consisting of 2 elected members from each Council was established and oversaw the
development of a Regional Business Plan by consultants, KPMG.
KPMG presented their report in early 2012, at which time the Shire of Wickepin withdrew from the RTG.
1.3
Cuballing-Narrogin-Narrogin Regional Transition Group
Following withdrawal by Wickepin, the remaining three Councils resolved to continue with an RTG with
the aim of amalgamation.
KPMG were requested to revise the draft RBP on this basis. In August 2012 the revised Report was
submitted by the RTG on behalf of the three Councils to the Local Government Advisory Board for
assessment. The LGAB then conducted its own investigation and made a recommendation to the
Minister in December 2012 that the three Councils merge.
The Minister advised that he accepted the LGAB’s recommendations on 28 December 2012.
The decision was advertised and as permitted by the Local Government Act, a valid petition for a poll of
electors of the Shire of Cuballing was received. No poll of electors was requested for the Shire of
Narrogin or Town of Narrogin.
An in-person poll was held on 13 April 2013, conducted by the WA Electoral Commission. There were
449 votes cast being 71% of Cuballing electors, of which 353 or 78.6% were a “No” vote.
Accordingly, the Board met on 15 April 2013, noted the poll results and discontinued work towards a tripartite amalgamation.
The Board recognised the need for the three Councils to have close cooperation, and resolved to
continue working together and implement other options
1.4
Narrogin Shire and Town – Proposed merger
In mid-2013, the Shire of Narrogin and Town of Narrogin resolved to re-commence discussions to
merger, and with funding support from the Department of Local Government and Communities,
appointed a consultant to review the previous Regional Business Plans and prepare a report that extracts
relevant information, updating detail where appropriate, and adding new information as necessary.
Shire and Town of Narrogin
Proposal for Boundary Change– draft v.10
– Page 5 –
The maps below show the Shire boundary, completely surrounding the Town, and the adjoining local
governments.
1.5
Scope of Report
With the assistance of DLGC, a Report Scope outline was developed and circulated to consultants as the
basis for them to make their submissions to prepare a further review.
Given the detail of the CNN RTG Regional Business Plan and that it has been reviewed by the Local
Government Advisory Board in making their recommendation to the Minister for Local Government in
December 2012, this report does not re-visit all the matters in the CNN-RTG Regional Business Plan.
It focuses on the current circumstances of the two merger partners, and the possibilities for the future
new entity. This Report also looks at some specific issues that have been identified.
This report therefore closely follows the Scope prepared by DLGC and the two Councils, rather than
being a re-write of previous Regional Business Plans.
1.6
Purpose of Report
To review the amalgamated state business plan and demonstrate whether merger through a boundary
change or formal amalgamation of the Shire and Town of Narrogin will deliver –
- A financially sustainable local government into the future.
- A local government with increased capacity and capability to meet future community needs and
government requirements.
- A local government that can capitalize on strategic opportunities to build the local economy.
- A local government that can retain and attract the requisite workforce and elected members to
position Narrogin into the future.
Shire and Town of Narrogin
1.7
– Page 6 –
Abbreviations and Definitions
Act
CLGF
CNN RTG
CNW RTG
DLGC
LGAB
LGGC
LGIS
Minister
MRWA
Narrogin
R4R
ROMAN
RRG
RTR
Shire
Town
WALGA
1.8
Proposal for Boundary Change– draft v.10
Local Government Act 1995
Country Local Government Fund
Cuballing-Narrogin-Narrogin Regional Transition Group (from May 2012 to April 2013)
Cuballing-Narrogin-Wickepin Regional Transition Group (to May 2012)
Dept of Local Government and Communities
Local Government Advisory Board
Local Government Grants Commission
Local Government Insurance Services, a business division of WALGA
Minister for Local Government
Main Roads WA
is used to refer to the environs of the Narrogin townsite, whether formally defined as Town
of Narrogin or as a townsite, as distinct from the Shire or Town
Royalties for Regions
WALGA Road Management data system
Regional Road Group
Roads To Recovery
Shire of Narrogin
Town of Narrogin
WA Local Government Association
Merger v. Amalgamation v. Boundary change
The methodology is further discussed in Section 12.
Although not recognised in the Act, the generic term “merger” is often used to mean the creation of a
single organisation from more than one, regardless of the process.
In this document therefore, where the context permits –
Merger
means the Shire and the Town becoming one entity regardless of process
Amalgamation
means both entities ceasing and a new entity being created
Boundary change
means one entity being subsumed, and the other being the continuing entity.
Shire and Town of Narrogin
2
Proposal for Boundary Change– draft v.10
– Page 7 –
EXECUTIVE SUMMARY
Over the years, the use of quadruple bottom line concept as framework has been extensively used as a
tool for a wide range of business purposes. 1 2
In the context of the Shire of Narrogin and Town of Narrogin –
Environmental / Nature / Planet

The ecological and environmental systems and conservation, including resource use and waste
Both the Shire and the Town have environmental obligations, with the Shire providing support for the local
Land Conservation District Committee, and the Town having invested much effort in the rehabilitation in
the Gnarojin Creek running through the centre of the townsite.
Both are active in matters of fire control for broad acre farming, urban areas and reserves. A joint
Community Emergency Management Officer is currently under consideration.
While the Town operates a large land fill site, both are involved in regional refuse disposal initiatives.
Their actions and obligations are complementary, and have worked harmoniously over the years,
Merger would result in greater coordination and improved service delivery.
Culture / Well-being / People

Our health, happiness, well-being and quality of life that enables us to flourish
Most community and recreation services are managed by the Town and serve the combined community –
home care, library, recreation services, public buildings for hire, sportsgrounds etc. The Shire does
operate the Parents and Community Initiative which is focussed on the urban community, and also makes
a contribution to the Town for Shire resident access to services.
There is very little overlap in the services provided, with the majority being delivered by the Town.
Merger will result in little change, since as the only sizable community within the two local government
districts, the two areas are effectively already one. All schools, almost all recreation activities and service
organisation are based in the urban area.
Possibly the greatest impact of merger in this area will be improved career options and greater
specialisation and opportunities for staff. As both the Shire and the Town experience pressure of
demands on staff, redundancies are considered to be unlikely as all staff will be able to be incorporated
into similar positions in the new entity, or into new positions if necessary by agreement.
Economic / Profit

The human systems that convert resources into food, shelter, ideas, industries, services, money and
jobs
Narrogin is a regional centre, and although the surrounding district is agricultural, the services available in
the urban area provide a wide scope of opportunity not limited to solely agricultural pursuits.
Although there are limited direct economic benefits, merger will bring to the new entity greater ability to
target its activities, both internally through better management of resources and externally by applying for
grants and facilitation of development, which will have the effect of improving options and reducing costs
of some services.
1
Cambridge Leadership Development – People, Profit, Planet, Progress (27 Dec 2013)
http://cambridgeleadershipdevelopment.com/quadruple-bottom-line-for-sustainable-prosperity/
2 The Sustainability Compass – Nature, Economy, Society, Well-being (27 Dec 2013)
http://compassu.wordpress.com/introduction/
Shire and Town of Narrogin
Proposal for Boundary Change– draft v.10
– Page 8 –
Of the few negative aspects involved in the proposed merger for the new entity is the potential cost
arising from reduction of access to Regional Road Group funding.
Social /Progress

The institutions, organisations, cultures and community conditions that make up our collective life as
human beings
It is difficult to offset this cost against the anticipated benefits for a net gain, as almost all social aspects
of the community are already integrated and function for the benefit of not just the Shire and the Town but
also for Cuballing, Wickepin communities particularly, and to a lesser degree also benefit Williams,
Pingelly and Wagin. The wider regional community also gains from the strengths of Narrogin as a
regional centre.
The separation of the community has created a divide over the years. There has been a Town
perception that the Shire residents are gaining an unfair advantage and not contributing sufficiently to the
central facilities that they use. There has also been a perception by the Shire that the Town simply wants
merger in order to fund costly services that have been created without their input.
Conclusion
To summarise –
1. The community is actually one, and the separation into Shire and Town is an artificial separation
having historical reasons, but now serving no good purpose. In the same ways that farms and
businesses cannot operate as they did 120 years ago, neither can local government.
2. The separation does have significant negative aspects by dividing what is really one community
into two, each focussed meeting the obligations of their “patch” and gaining advantage, rather
than effective delivery to the single community.
3. Merger is also the opportunity to examine all aspects of operation for rationale and justification.
4. Workforce options are improved for career development and specialisation
5. The requirement for rates increases on the Shire rates assessments exists already, and when
considering the asset renewal gap, if merger proceeds the agreed increase is very substantially
less than if the Shire remains as a separate entity.
6. Urban rates assessments will bear increased exposure to costs particularly to asset renewals, as
a result of merger.
7. Merger will result in increased presence as a regional centre, especially at the State level.
8. A major negative to merger that has been identified, is the reduction in eligibility for funding
through the Regional Road Group.
Accordingly it is recommended that the Shire of Narrogin and Town of Narrogin be merged by boundary
change.
This document refers to a potential merger date of the 1st July 2015. While this is the preferred date for
the merger, as it will complement the State-wide Local Government Elections in October 2015, the actual
date will depend on the preparedness to meet this timeline.
The preparation of this version of the Proposal for Boundary Change Document (dated October 2014)
has been based on an earlier version (dated January 2014). The purpose of the revision is to provide an
update for the community and ultimately the Local Government Advisory Board if the Shire and Town
Councils chose to proceed. Every effort has been made to incorporate the changes necessary to make
the document relevant, (errors & omissions accepted). Please note that the revision has not incorporated
the tables that appear as an addendum to this report and the tables are provided for general information
only (all figures remain as per the January 2014 version of the Report).
Shire and Town of Narrogin
3
STRATEGIC DIRECTION
3.1
STATISTICS
Proposal for Boundary Change– draft v.10
– Page 9 –
Base statistics of the Shire and the Town as well as population estimates and forecasts are in
Appendices 3.1(a) and 3.1(b).
As at the 2011 Census, the Shire has a small residential base of just 875, while the Town is nearly 5
times the size with an estimated 4,219 residents.
Indicators are that growth will continue to be slow just 0.8% and 1.2% respectively for the Shire and
Town, and 1.1% per annum for the two combined. In part, this is a reflection of the issues impacting on
agricultural industries and the general outlook for supporting industries –
- larger farming units
- improved technology requiring fewer people
- drift to metropolitan and large urban centres
There is currently limited opportunity for expansion into other areas, and although there have been strong
initiatives over the years to diversify, the central importance of agriculture to the region continues to
dominate.
Some of the initiatives include –
- Development of industrial area
- Efforts to attract a flying school to the airfield
- Plans for aircraft support service to be developed at the airfield
- Strong partnership with Main Roads WA for private works and road services contracts
- With CY O’Connor College of TAFE for health education in partnership with the Hospital and
local doctors
- High intensity agricultural precinct
3.2
3.2.1
COMMUNITY OVERVIEW
Shire of Narrogin
The Shire is largely an agricultural district with one minor townsite of Highbury roughly 16 km south of
Narrogin on the Great Southern Highway. Lifestyle development has not had major impact to date,
although several small developments have occurred, however the likelihood of proposals is increasing,
consistent with the experience of the Shire of Cuballing.
The Shire hosts the Narrogin Agricultural College 8 km west of Narrogin, which has student
accommodation as well as daily bus from Narrogin.
The Shire does have urban and semi-urban areas on the outskirts of the Narrogin environs, which use
the Town services. .
3.2.2
Town of Narrogin
Narrogin is a regional centre and service town for the surrounding agricultural area, with commercial and
industrial service focussed on agricultural pursuits. It is the centre for a sizable area that extends from
Brookton 70 km to the north to Wagin 50 km south, and from Williams 30 km west through to Lake King
some 250 km east.
As the regional centre, there is a diversity of government and private services available. Narrogin has a
full Regional Hospital, 2 multi-GP medical practices, dentists, a number of hotels, and heavily utilised
motel accommodation. Good shopping facilities are available as two supermarket chains have a
presence, and a wide range of businesses. A number of accounting firms, a funeral director, the 4 major
banks plus others, 2 State primary schools, a private school, Senior High School, Agricultural College and
CY O’Connor College of TAFE Campus.
State government services such as MRWA, Water Corporation, Wheatbelt Development Commission
and others are solidly established in Narrogin, serving a large regional area.
Shire and Town of Narrogin
Proposal for Boundary Change– draft v.10
– Page 10 –
Statutory planning has been made somewhat more complex due to the urban areas of the Shire and the
light industrial area on the outskirts of Narrogin, but a joint Planning Scheme is currently being finalised.
The main light industrial area for Narrogin is within the Town, on the southern outskirts of Narrogin itself,
the area having been the subject of a boundary change from the Shire to the Town in the 1970’s.
3.2.3
New Entity
Other than an administrative boundary, in reality the two communities are one already – local
identification is strong, the linking of services is very strong, as are educational, sporting and other
recreational, commercial interfaces.
In “Community Profiling” 3 Christakopoulou et al. (2001) suggest that a comprehensive community profile
ought to address the following aspects of people’s lives –
-
the area as a place to live – including the quality of the physical environment and people’s attitudes to
living there; the extent to which needs are matched with resources; and the extent to which local facilities
meet people’s goals and aspirations;
the area as a social community – including residents’ involvement in the social life of the community; the
extent to which the community is supportive; formal and informal networks;
the area as an economic community – including income levels and employment prospects of local
residents; prosperity and viability of local shops;
the area as a political community – including systems and structures of political representation and local
area management; the extent to which local people can influence decisions that affect them; the degree of
involvement in local decision making; participation in community organizations;
the area as a personal space – the degree of attachment that people have to the local area; memories and
life experiences of local people;
the area as part of its city – infrastructural, economic and social linkages between the local area and the
city or district of which it is a part; the specific local identity that differentiates the community from the rest
of the area/district.
Socially, politically, economically and identity the Shire and the Town are effectively one unit – only for the
purposes of local government is there any division at all.
There are often concerns expressed about retaining local identity of an area when a merger is proposed.
In general, local identity is a function of resident commitment to their immediate neighbourhood, and does
not rely on an organisation for existence. Examples of this can be seen in the Shire of Cuballing, where
Popanyinning residents clearly identify themselves separately to Cuballing town residents, and this is
replicated in a great many local governments around the State. While the organisation may be able to
support local identity, it cannot create it nor is it the caretaker for it – this is a responsibility of the
residents wishing to do so.
The new entity should provide opportunities and support residents who wish to preserve some form of
local identity, even if it is only the retention of separate vehicle number plates, and signs for the various
physical suburbs or localities.
3.3
3.3.1
STRATEGIC COMMUNITY PLANNING
Shire of Narrogin
The Shire commenced development of their Strategic Community Plan in 2010 with extensive public
consultation being undertaken. Several drafts were prepared, and in June 2013, the modified draft was
formally adopted by Council.
The Plan has as its vision –
Our Shire is thriving and strong
Our community is strong and motivated
3
Christakopoulou, S., Dawson, J. and Gari, A. (2001) ‘The community well-being questionnaire: theoretical context and initial
assessment of its reliability and validity’, Social Indicators Research, 56: 321–51 from
mcgraw-hill.co.uk/openup/chapters/9780335221646.pdf (on 6 January 2014)
Shire and Town of Narrogin
Proposal for Boundary Change– draft v.10
– Page 11 –
The Strategic Priorities are identified as –
- Thriving local economy
- Motivated, sustainable community
- Well managed natural environment
- Strong, respect-worthy leadership
A range of specific targets and task have been set within each of the strategic priorities, and the SCP has
strong linkages to the Corporate Business Plan.
3.3.2
Town of Narrogin
The Town’s Strategic Community Plan was prepare on the basis of extensive consultation and adopted in
November 2012. It has not needed subsequent review, and provides clear support for the Corporate
Business Plan.
The Vision is stated as –
Prosperity and growth as a regional centre
The Key Outcome Areas are –
- Economic development
- Community development/service
- Parks & gardens, and the natural environment
- Governance and corporate services
- Waste management
- Infrastructure and asset management
- Longer term strategies over 10 years
Specific targets and tasks have been agreed for each of the key outcome areas.
3.3.3
New Entity
Although the terminology used in the two Plans differs there is a high degree of congruency between
them – not surprising given the equally high degree of reliance each community has on the other.
It is expected that it would be a relatively simple and straightforward task to review both Plans, fold into
one single plan, then following public consultation adopted either as a joint Strategic Community Plan
prior to merger, and confirmed in July 2015 as the Plan for the new entity.
Early preparation and adoption of a joint SCP would have benefit, as the respective communities would
be able to see the commonalities of both, and still having their individual interests overseen by separate
Councils. It will also assist with focussing efforts towards the enlarged responsibilities, particularly in
areas that have overlap like –
- Statutory planning
- Natural environment
- Economic development
- Community initiatives
- Fire control and emergency services
- Aligning community expectations
3.4
3.4.1
CORPORATE BUSINESS PLANNING
Shire of Narrogin
The Shire completed a draft of their Corporate Business Plan in June 2013, but it has not been adopted
as yet, as both the Asset Management Plan and Long Term Financial Plan remain incomplete.
The CBP addresses the Workforce Plan, draft AMP and draft LTFP specifically, noting that where
business as usual is proposed, the Shire is able to cope, but is under pressure. Where there are new
expectations, requirements or compliance is added, then additional resourcing is necessary, whether by
outsourcing or additional staff.
Shire and Town of Narrogin
Proposal for Boundary Change– draft v.10
– Page 12 –
In relation to the AMP, it is noted that significant work needs to be done to make the process useful, and
a range of initiatives are proposed, rather than being just compliance.
The CBP is directly and strongly linked to the Strategic Community Plan, with the community priorities in
the SCP forming the annual reporting framework under the CBP as required by legislation. In reviewing
the responsibility for implementation of these priorities, the CEO is required to shoulder a very large
burden, as there is very limited scope for delegation of the tasks.
3.4.2
Town of Narrogin
The Town’s Corporate Business Plan was adopted in April 2013.
There is clear linkage to the Long Term Financial Plan is in place, as are links to Workforce Plan and
Asset Management Plan although these are less obvious
Strong links exist to the SCP with detailed Actions being provided for each strategy of the six Objectives
identified in the SCP. While the CEO must carry a substantial load, there is a wider delegation of tasks to
Directors and other senior staff evident, equalising the responsibility.
Of note, the Town’s SCP and CBP both comment on long term strategies (10 years or more), which is
useful for setting the context of some of the shorter terms Key Outcome Areas and proposed strategies.
3.4.3
New Entity
The two Corporate Business Plans, as with the Strategic Community Plans, have a high compatibility,
although the focus for each is slightly different.
A new entity will be able to bring a more holistic framework to the Shire and Town residents, forming a
focussed program for what is actually a single community, currently artificially divided.
A merged CBP should be a priority, and a draft prepared even before the boundary change is effected
(despite obvious deficiencies as neither AMP nor LTFP will be fully developed and settled), to provide a
basis for Commissioners and the new Council to work with. This can be done using the two SCPs and
CBPs to form an interim CBP and can be embark on despite the issues surrounding the inability to
finalise the WFP until after merger, the work that will still be underway with AMP and processes, and the
resulting incompleteness of the LTFP.
As an annual document, the CBP is under constant scrutiny and review, so the accuracy and
completeness of an interim document will rapidly improve.
3.5
STRATEGIC DIRECTION – SUMMARY
In the CNN-RTG Report of November 2012 KPMG have noted that –
The benefits that a new local government delivers to help meet the community needs includes
capacity to –
- take advantage of an increased size and more efficient organisation to more efficiently utilise
existing resources;
- strategically plan across a wider community to make efficient use of resources;
- make better use of employees’ skills through role specialisation;
- greater ability to recruit and retain staff;
- encourage people who are attracted to the country lifestyle to settle in the area;
- attract businesses to the area to ensure economic diversity and sustainability, as well as
provide employment opportunities;
- provide a range of services, facilities and assets to meet community needs;
- manage the natural environment to ensure it is sustainable and continues to remain a prime
tourist attraction; and
- improving the natural and built environment to make the area a desirable place to work and live.
Shire and Town of Narrogin
4
DISTRICT
4.1
NAME AND BOUNDARIES
– Page 13 –
Proposal for Boundary Change– draft v.10
The current names and boundaries have more than a century of history – 4
Date
19-May-1892
Narrogin Road District
13-Apr-1906
23-Jun-1961
Narrogin Municipal District
Narrogin Shire
Narrogin Town
Over the years, there has been a series of minor boundary adjustments between the Shire and the Town
and between the Shire and each of its external neighbours – Cuballing, Wagin, Wickepin and Williams.
There does not appear to have been any adjustment of the small section of boundary shared with West
Arthur.
4.1.1
New Entity Boundaries
The proposal is that the whole of both Councils become a new entity, with no adjustment to or from other
adjoining Councils.
4.1.2
New Entity Name
In October 2012, public consultation was undertaken regarding a possible name for the proposed new
entity, which at that time included the Shire of Cuballing.
Of the 381 suggestions received from the Shire and Town residents –
- The vast majority preferred “Shire” over “Town” in the name, possibly a reflection of the strong
identification with the rural area –
o Other suggestions included –
 “Regional” – however, this has specific legal connotations or requirements and
would not therefore be acceptable
 “County” – not recognised under the Act
 “District” – has a specific meaning under the Act, and would not therefore be
acceptable
 The Local Government Act 1995 s.2.4 (1) requires a district to be designated as
a city, town or shire
- The vast majority also had “Narrogin” as part of the name –
o Other suggestions included –
 “Dryandra” – however as this was locality specific, it was not felt to be sufficiently
connected to a new entity
 “Cuballing” – not now appropriate
- “Shire of Greater Narrogin” received a degree of support
- “Shire of Narrogin Valley” has been recently suggested, but as with “Dryandra” may be too locality
specific
The name for the new entity that is favoured by the Shire and the Town is “Shire of Narrogin”, to be
implemented within 6 months of the boundary change being effective.
The following matters are considered by the Shire and the Town to be linked and agreement is
conditional upon acceptance of them as a bloc –
4.1.2 – Name change being implemented within 6 months of the boundary change
4.3.3 – All elected members of both Shire and Town resigning on or prior to 15 May 2015
4.6 – Commissioners – independent Chair, 2 members from each of Shire and Town to take office
on vacation by the elected members
4.6 – Commissioners to make determination of Acting CEO to hold office from 1 Jul 2015, for up to
12 months
4
Municipal Boundary Amendments Register, Release 3.0, 31 July 2007, State Law Publisher
Shire and Town of Narrogin
Proposal for Boundary Change– draft v.10
– Page 14 –
5.5.3 – CEOs to resign effective 30 June 2015, in order to take up a Directorship of the new entity,
without loss of benefit or entitlements, and both eligible for consideration as Acting CEO or
for appointment as the permanent CEO
5.5.3 – The Shire and Town recommend to the Commissioners that the Acting CEO be either of
the former CEOs
5.5.3 – Process for the recruitment of the permanent CEO to be initiated by the new Council
elected in October 2015
12.4 – Merger through boundary change with the Town as the continuing entity
4.2
4.2.1
WARDS
Shire of Narrogin
The Shire abolished wards in 2005, so all Councillors are elected at large.
4.2.2
Town of Narrogin
The Town has never had wards since its inception as a Municipal District in 1906.
4.2.3
New Entity
It has been agreed by the Shire and the Town that on merger through boundary change, two wards
should be implemented, with the boundaries being the former Shire boundary with the Town.
That two Wards be established based on the areas of the former Districts, and be known as –
- Urban – being the former Town
- Rural – being the former Shire
It has also been agreed by the Shire and the Town that the wards should remain in place until prior to the
2017 elections, at which time they should be abolished, so that the 2017 elections are for whole of new
entity.
4.3
4.3.1
REPRESENTATION
Shire of Narrogin
The Shire currently has 7 councillors with three having recently been elected in October 2013, and four
terms expiring in 2015.
The Shire’s preferred position is that the new Council have 2 wards, each with 4 elected members until
the 2019 elections, when wards would be abolished, and the number of elected members increased to 9.
4.3.2
Town of Narrogin
There are currently 8 positions as Councillor and all are elected at large with 4 terms expiring in 2015 and
4 in 2017. As a consequence of the October 2013 Mayoral election, the Town has recently sought
approval to hold one seat vacant until 2017 elections, which the Minister has agreed to
The Mayor currently holds office until 2017, and being elected at large, rather than from Council is not
considered a councillor, although the position is that of an elected member. There is no difference in
voting rights as the Act s.5.21 provides for both popularly elected Mayors/Presidents and Council elected
Mayors/President to have both a deliberative and casting vote.
The Town’s preferred position is that the new Council have 2 wards, the Urban Ward having 5 elected
members and the Rural Ward having 4 elected members until the 2019 elections, when wards would be
abolished, and the number of elected members increased to 9.
4.3.3
New Entity
The Shire and Town considered the possibility that the new entity be established as a 9 member Council,
but that one seat remain unfilled until 2017. In this way, the quorum of 5 must include at least one
Shire and Town of Narrogin
Proposal for Boundary Change– draft v.10
– Page 15 –
representative from each area who participates in all voting, but it retains the even numbers in each ward
in the interim.
Also considered –
- increasing the quorum for a Council of 8 from 4 to 5 Councillors
- suspending the Chairperson’s right to a casting vote in the event of a tie for this period, so that a
tied vote would therefore be resubmitted to the following meeting for decision.
Advice received from DLGC is that –
- a vacancy cannot remain unfilled for a period of 4 years
- there is no authority in the Act to increase a quorum
- there is no authority in the Act to suspend the casting vote of the Chair in the event of a tied vote
Following extended discussion, the Shire and the Town have agreed that –
- there be 8 elected members initially, with 4 from each ward from commencement until prior to the
2017 elections
- effective from the 2017 elections, wards are abolished
- effective from the 2017 elections, an additional elected member to be added increasing the
Council to 9 members
- the President be elected from and by the Council
The following matters are considered by the Shire and the Town to be linked and agreement is
conditional upon acceptance of them as a bloc –
4.1.2 – Name change being implemented within 6 months of the boundary change
4.3.3 – All elected members of both Shire and Town resigning on or prior to 15 May 2015
4.6 – Commissioners – independent Chair, 2 members on nomination from each of Shire and
Town to take office on vacation by the elected members
4.6 – Commissioners to make determination of Acting CEO to hold office from 1 Jul 2015, for up to
12 months
5.5.3 – CEOs to resign effective 30 June 2015, in order to take up a Directorship of the new entity,
without loss of benefit or entitlements, and both eligible for consideration as Acting CEO or
for appointment as the permanent CEO
5.5.3 – The Shire and Town recommend to the Commissioners that the Acting CEO be either of
the former CEOs
5.5.3 – Process for the recruitment of the permanent CEO to be initiated by the new Council
elected in October 2015
12.4 – Merger through boundary change with the Town as the continuing entity
4.4
ELECTED MEMBERS – PAYMENTS
While elected member payments of both the Shire and the Town are within the Salaries and Allowances
Tribunal Ruling, there are substantial differences as a result of being in different Bands, and due to the
structure chosen for payments.
The major difference is that the Shire has chosen to pay meeting fees (sitting fees for each meeting)
while the Town has opted for annual payment of fees.
There is currently little consistency in the level of fee and payments paid to elected members by the Shire
and Town, with both type of fee to be paid and level of fees being substantially different.
The new entity will need to take into account the number of standing and occasional committees and the
number of organisations to which representatives are appointed.
At this time, there has been no discussion regarding future levels or to transition to a consistent
framework. This matter is considered to be one that is at the discretion of the new Council, but for the
purpose of estimates, some assumptions have had to be made.
Shire and Town of Narrogin
4.5
Proposal for Boundary Change– draft v.10
– Page 16 –
BOUNDARY CHANGE EFFECTIVE DATE
It is the wish of the Shire and the Town that merger through boundary change occur as soon as it can be
achieved in good order, and will strive for a 1 July 2015 effective date if it is at all possible. However, it is
acknowledged that to do so in good order may mean settling on the following constraints –
NEW PROPOSED TIME LINES
Action
Target date
Completion of preliminary draft of the Report
December 2013
Finalise draft Report
January 2014
Special meetings of the Shire and the Town
February 2014
Joint workshop to settle agreed details of the Report
February 2014
Letter to Minister requesting confirmation of transitional funding assistance
February 2014
Receipt of Advice from Minister
July 2014
Councils to endorse advancement of merger
September 2014
Release for public comment with submissions closing
October 2014
Decisions by Shire and Town whether to make submission to LGAB
November 2014
Presuming a decision to proceed, LGAB considerations and actions, including
public consultation etc
November 2014 to February 2015
Submission to Minister by LGAB
March 2015
Decision by Minister
March/April 2015
If the process for a formal amalgamation is used, a poll of electors may be required as provided for by the
Act, and a further period of 2-3 months needs to be allowed for the statutory processes. The options for
merger are discussed in Section 12.
The Shire notes that the residents had the opportunity to call a poll in early 2013 regarding possible
amalgamation, but did not make any request.
The Shire and the Town are keen for merger through boundary change to occur at the earliest feasible
date, as the result of information in this report, comments from DLGC and providers, the estimated
timeframes for the LGAB, and the metropolitan local government reform initiative, the Shire and the Town
acknowledge that the preferred date for merger to take effect is 1 July 2015.
4.6
TRANSITION ARRANGEMENTS – COMMISSIONERS
The Shire and Town have agreed that elected members will voluntarily vacate office by resignation, on or
prior to 15 May 2015, to allow for early appointment of Commissioners by the Minister.
This will permit each Council to have significant input into the preparation of the first budget for the new
entity, while also allowing –
- Early appointment of Commissioners
- The Commissioners having some time to become familiar with each of the entities prior to
merger through boundary change
- The Commissioners being able to determine who is to be Acting CEO from 1 July 2015
The Shire and the Town have agreed that during the period between termination of the former Councils
until inaugural elections, that 5 Commissioners is preferred, being –
- Independent Chairperson appointed by the Minister
- 2 Commissioners appointed by the Minister on the nomination of the Shire
Shire and Town of Narrogin
-
Proposal for Boundary Change– draft v.10
– Page 17 –
2 Commissioners appointed by the Minister on the nomination of the Town
This would ensure that each area’s voice and interests can be presented, should a Commissioner not be
available.
The following matters are considered by the Shire and the Town to be linked and agreement is
conditional upon acceptance of them as a bloc –
4.1.2 – Name change being implemented within 6 months of the boundary change
4.3.3 – All elected members of both Shire and Town resigning on or prior to 15 May 2015
4.6 – Commissioners – independent Chair, 2 members from each of Shire and Town to take office
on vacation by the elected members
4.6 – Commissioners to make determination of Acting CEO to hold office from 1 Jul 2015, for up to
12 months
5.5.3 – CEOs to resign effective 30 June 2015, in order to take up a Directorship of the new entity,
without loss of benefit or entitlements, and both eligible for consideration as Acting CEO or
for appointment as the permanent CEO
5.5.3 – The Shire and Town recommend to the Commissioners that the Acting CEO be either of
the former CEOs
5.5.3 – Process for the recruitment of the permanent CEO to be initiated by the new Council
elected in October 2015
12.4 – Merger through boundary change with the Town as the continuing entity
Shire and Town of Narrogin
5
Proposal for Boundary Change– draft v.10
– Page 18 –
HUMAN RESOURCES & CHANGE MANAGEMENT
The assistance of Ms Margaret Hemsley, Principal Consultant LG People, was sought for this part.
5.1
WORKFORCE PLANNING
In early 2013 a consultant was appointed by the Shire and the Town to prepare individual Workforce
Plans.
Using a proprietary evaluation tool, the Plans assessed a range of workforce perceptions of management
systems. Taking the strengths of each and applying them to the future indicate that the new entity should
be effective, well regarded, capable and skilled.
The Plans note that while perceptions within each workforce indicate some improvements can be made,
overall, each workforce has a healthy degree of satisfaction.
5.1.1
Shire of Narrogin
The Shire’s Workforce Plan has noted that –
Currently there are skills, knowledge and capacity issues in maintaining and delivering the
current levels of service.
With the current workforce levels, the Shire has been assessed as being able to meet business as usual
requirements, but has very little capacity to take on additional work. Consequently, when large contracts
are won from MRWA for private works or other roadwork tasks, the Shire engages external contractors to
ensure that both own works and the income generating activity can be completed.
It must be acknowledged that due to the uncertainty of road projects grants, private works or MRWA
direct contracts, this is a responsible principle that avoids constant expansion and contraction of plant
and workforce, which is expensive economically and in personal terms.
The Plan does identify several gaps or potential new positions, and notes the pressures that all staff are
under, both works and administrative –
- Community Emergency Management Officer – to support legislative compliance and increase
capacity and capability in this area, and has been already budgeted
- Strategic Planning and Community Development Officer – contract, part-time, possibly joint with
Town
- Executive Assistant / Admin Officer – Changes to existing Admin / Clerical role to pick up Council
agendas and minutes and formally provide executive support to the CEO
The Shire does not have directorates as such, but the workforce is essentially categorised as being office
based or depot based. In the simple two tiered organisational structure of the Shire, it shows that
theoretically the CEO seems to be well supported by the organisation structure.
The Shire has little activity in Community Services relying on the Town addressing community needs in
this area, as they also do with recreational and aged care services. Despite this, the Shire does oversee
the Parents and Community Engagement Program funded by Dept of Education, Employment and
Workplace Relations to facilitate the involvement and development of links of Indigenous parents with the
schools their children attend.
5.1.2
Town of Narrogin
The Town’s Workforce Plan advises that –
It is clear that the provision of services within the Town are set to increase in the future and the
expectations on existing staff will continue to rise. With services and functions not being met
there will be a strong push to ensure that the organisation is properly staffed.
… it is expected that the area of requirement will potentially arise from the Community
Development Area …
The expectation is consistent with the community and leisure facilities provided by the Town for Narrogin
and wider region residents.
Shire and Town of Narrogin
Proposal for Boundary Change– draft v.10
– Page 19 –
The Town of Narrogin organisational structure has been reviewed on several occasions recently that has
allowed the organisation to better utilise its current staff and for the organisation to become more efficient.
Further changes need to be implemented over time and when the organisation can afford the increase in
wages; however, the organisation cannot be expected to increase its service provision until this occurs.
Where the organisation currently struggles to provide adequate service, it seems this will also continue
due to affordability.
The Plan also identified the need for 2 specific positions –
- Special Projects / Community Development Officer –preparing grants, special events
coordination for the town and being the point of contact for external event facilitators
- Senior Technical Officer (now employed) – to directly supervise the Works Crew and be
responsible for the Day to Day operations of the Crew, in order to provide good clear guidance to
the Works Crew and free the time of the Director to focus on the building, planning and regulatory
aspects of the position, which is hoped will also free up some time for the CEO
The Town currently has two formalised directorates –
- Corporate and Community Service
- Technical and Environmental Services
5.1.3
New Entity
In order to provide as much certainty and direction for the future as is possible, it is strongly
recommended that the Shire and Town commence the development of a single joint Workforce Plan as
soon as appropriate, with the target of having it effectively settled at least six months prior to effective
date. Although the WFP cannot be finalised until the new entity is formally commenced, a final draft of
the Plan should provide the two workforces, the Councils and the community with assurance that their
interests are being considered.
Having had a single consultant prepare both the Shire’s and the Town’s Workforce Plans, the bringing
together of both should be reasonably straightforward. There would be much to be gained using the
same consultant again, both to prepare the plan and to assist with the process of workforce merge and
restructure.
As the workforce is of critical importance, it is essential that the consultant work closely with the staff and
CEOs in designing and preparing for merger.
Employee welfare must also be considered, and the use of Local Government Insurance Services HR
Consultant/Psychologist separately from the workforce development consultant to oversee employee
welfare is strongly encouraged. Employees desiring support can therefore be assured that their
conversations will be confidential and not influence or be influenced by organisational decisions.
5.2
5.2.1
STAFF PROFILE
Shire of Narrogin
The Shire has been fairly stable in staff retention but experiences turnover in the lower end positions in
works, especially when flexing up and down to meet Main Roads contracts.
There are 21 employees at the Shire at the time of compiling the workforce plan. 16 of the staff worked
full time and 5 part-time. Overall it seems that the Shire is under some pressure at times, particularly in
the works department.
All staff live in the region. Largest group for years of service are 11 – 15 years at 26% of the workforce
and 50% have worked for other local governments. The age profile shows an average age of 49 years.
There are no employees under the age of 25 years and 8 staff over the age of 60 –
- 76% of staff work full time
- 24% part time. 7% of workers do regular overtime and
- 84% work longer hours due to having too much to do in contracted hours.
The Shire has noted the apparent trend to an older workforce, but considers that this is reflective of the
composition of the population of the district (ABS median age of 37 in 2011 Census). Initiatives to attract
Shire and Town of Narrogin
Proposal for Boundary Change– draft v.10
– Page 20 –
younger staff members are being pursued. Part of the reason for the skewing towards an older workforce
is considered to be –
- Younger people in the Shire tend to be on farms rather than in off-farm employment
- Younger people tend to seek higher paying employment elsewhere, in mining, contracting or in
Perth
- There is a small but consistent flow of older people seeking stable and certain employment
without the pressures of shift work, long hours and Fly In Fly Out arrangements.
Overall staff feedback both in the survey and in consultation demonstrated a high level of satisfaction with
the Shire as an employer. Some commented on a shortage of staff at some times and the level of wages
although they understood that was mainly to do with the size and budget of the Shire and it was not
deemed a significant factor.
All staff are employed under the Local Government Industry Award 2010 with additional remuneration or
benefits as appropriate to address recruitment and retention challenges. The CEO is a direct employee
of the Shire rather than under contract due to length of tenure.
5.2.2
Town of Narrogin
Staff turnover rates are difficult to establish at present as the Town is currently implementing new
management software.
The Town has operated under greater pressures than usual in recent years, and is still recovering.
These have included internal financial/administration issues as well as resolving these matters prior to
entering into successive merger negotiations with the neighbouring Councils of Cuballing, Narrogin and
Wickepin as part of the Local Government Structural Reform RTG process.
At the time of workforce profiling in April 2013, the Town had 88 employees located in the administration
building, the depot and various other community and recreational services locations across the town.
This is down significantly on previous years where employment had reached as high as 107 FTE.
Employment types consist of –
- 13% inconsistent hours,
- 12% Part Time,
- 37% Casual and
- 38% Fulltime employees.
There has been an increase in casual staff over the last three years with Community and Recreational
Services accounting for the majority of casual and part time workers
From a staff survey conducted at the Town as part of workforce planning there was a significant number
of core service workers that reported too much work to do in contracted hours.
The age profile of the Town is widely spread with representation of all working age groups.
According to the ABS 2011 Census data, the Town’s median age was also 37, with a median workforce
age of 44 indicated by the Workforce Plan, not radically different to hat of the Shire.
Staff satisfaction levels were mixed dependent on workgroups but there was a general trend that things
were improving against some key communication and resourcing challenges.
Executive staff (CEO, Directors and some managers) are employed under contract, with all other staff
are employed under the Local Government Industry Award 2010 with additional remuneration or
benefits as appropriate to address recruitment and retention challenges.
It is recognised that the Town administration is understaffed, and requires on-going attention to ensure
that the work groups achieve the goals set by the organisation. Coordination of effort is a restricting
factor and issues have been made more complex with a reduction from 4 Directors several years ago to
just to 2 Directors in the current structure, with various attendant issues arising out of the very broad span
of control that must be exercised by senior staff.
Shire and Town of Narrogin
5.2.3
Proposal for Boundary Change– draft v.10
– Page 21 –
New Entity
Both local governments have skilled and capable works crews who provide quality services but have
experienced difficulties in attracting new staff to the region that are appropriately skilled and experienced.
There is a small benefit to the Shire by merging with a slightly younger but larger workforce, as the risk is
spread somewhat. However, the average age differential is not substantial. An older workforce also
brings a number of potential benefits to an organisation, such as greater stability and broader skills and
knowledge.
Succession planning and preservation of corporate knowledge are recognised as challenges.
Both Shire and Town have a Code of Conduct and OSH procedural documents, and work closely with
LGIS Risk Management Services and the Regional Coordinator.
5.3
5.3.1
AWARDS AND EMPLOYEE ENTITLEMENTS
Shire of Narrogin
The Shire uses the Local Government Industry Award 2010, a modern award in the Commonwealth
workplace relations system.
All staff, including the CEO, are covered by the Award. As the CEO was an employee prior to 1995 when
compulsory contracts for senior staff were mandated in the Act, he remains covered by the Award rather
than being on contract, as permitted by the Act.
When comparing employee costs there is a substantial difference in gross employee costs averaged over
all employees between the Shire and the Town which requires explanation. Information collated during
preparation of the Workforce Plan indicates that non-Executive staff do have similar levels of benefit
packages. The principal reason for the variation is that a greater proportion of the Shire staff are “frontline”, whereas the Town has a much larger proportion responsible for managing activities, premises and
groups such as the Recreation Centre, Library, etc.
When removing assumed executive and senior salaries from the calculation the Shire and the Town
employee costs are comparable and consistent with each other, as well as with the modelling of
employment costs for the new entity.
There will remain minor variances that need to be addressed and resolved prior to merger, including –
- any actual difference in rates of pay, benefits etc, or
- varying accounting interpretations and methodologies
- total benefits package
- non-package benefits permitted, e.g. use of Shire/Town equipment for employee garden
maintenance, subsidised access to facilities etc
Reconciliation of the differences is important in order to estimate the costs of equalising employee
packages to ensure parity between employees having the same level of responsibility and job description
– the ‘ratchet up’ costs for qualifying staff.
Alignment of employees’ pay scales, benefits, policies, insurances etc, should commence by 1 January
2015, allowing 6 months to complete the workplace transition.
5.3.2
Town of Narrogin
The Town also uses the Local Government Industry Award 2010.
All staff other than senior staff on contracts are covered by the Award.
The average cost per employee for the organisation as a whole, while a little less than that of 4 metro
local governments used to compare, is in the order of expectation.
Alignment of employees’ pay scales, benefits, policies, insurances etc, should commence by prior to
merger, allowing sufficient time to complete the workplace transition.
Shire and Town of Narrogin
5.3.3
Proposal for Boundary Change– draft v.10
– Page 22 –
New Entity
If the Shire and the Town have aligned employee conditions early, a significant source of potential
irritation is removed from the transition process.
The Australian Services Union needs to be kept informed of actions relating to the workforce, and to this
end it is suggested that all workforce matters be managed by an appropriate HR consultant including –
- Liaison with the ASU
- Planning, development, integration of the two workforces
- Negotiating and settling consistent remuneration packages and employment contracts
- A “safe” person for employees to discuss their concerns
An external consultant will ensure greater independence in fact and perception.
While there is some confusion regarding whether Commonwealth or State Awards should be used,
WALGA Workplace Solutions advise that the majority of WA local governments are working under the
LGIA 2010, rather than the interim State Awards. This is consistent with the advice of Workplace
Solutions and the WALGA State Council policy position.
With both the Shire and the Town already using the LGIA 2010, alignment of employee benefits etc
should be easier as it does not require transfer between Awards.
It is expected that there will be differences in classification of jobs, and consequent pay scales, payment
of some discretionary allowances and benefits.
The Shire and the Town have agreed that all staff in all locations will be offered employment in the new
entity –
- without reduction of total package (pay, allowances, benefits), although the components of that
package may be varied so as to achieve consistency across the new entity
- with appropriate work and of a similar level, subject to –
o transfer to different employment, by negotiation
o support and training being provided as necessary
- where similar positions have a remuneration discrepancy, that the total benefit package to apply
will be the higher level,
- while the Local Government Act provides a guarantee of employment for two (2) years after a
merger, this is subject to continued satisfactory performance by the employee.
Merging of the workforce is made less complex as only the Local Government Industry Award 2010 is
required, and existing payroll staff are aware of Award provisions.
The primary stakeholders in the transition and merger through boundary change processes are expected
to be –
- the employees
- payroll officers
- HR consultant
- Australian Services Union
- WALGA Workplace Relations
- WALGA HR Risk Management consultant
The process will be overseen by the CEOs and Acting CEO if known, but driven by the HR consultant. It
is essential that the ASU be kept informed and confident of the integrity and equity of the processes.
5.4
5.4.1
WORKFORCE GAPS AND RISKS
Shire of Narrogin
Currently there are skills, knowledge and capacity issues in maintaining and delivering the current levels
of service.
There may be a need to review and reassess the frequency of maintenance of the road network both
from the road crew and community expectations. It would be beneficial to review all current services and
Shire and Town of Narrogin
Proposal for Boundary Change– draft v.10
– Page 23 –
service levels to determine what is affordable to meet current and future requirements to ensure quality
services, legislative compliance and to meet community expectations.
A key concern may be the ongoing affordability of the current workforce delivering current services,
without the additional capacity, skills and knowledge needed into the future.
This will require an innovative and structured approach to changes needed to services, service delivery
and the governance and management of the Shire to meet legislative compliance and required financial
ratios.
Support needs to be considered for the CEO to ensure retention and knowledge of management
strategies, in addition to the need to retain and develop staff through the structural reform process, to
enable them to be competitive for roles in any new entity.
The most significant risk factor in their systems and processes assessment is in leadership and
management where there is a significant dependency on the knowledge, skills and work ethic of the CEO
in managing the business, finances and the human resources of the Shire
5.4.2
Town of Narrogin
It is clear that the provision of services within the Town are set to increase in the future and the
expectations on existing staff will continue to rise. With services and functions not being met there will be
a strong push to ensure that the organisation is properly staffed.
From the Corporate Business Plan it is expected that the area of requirement will potentially arise from
the community development area with more staffing to better facilitate the provision of Community
Services and grant writing and development. The failure to properly assess the staffing level will result in
not achieving internal strategic requirements and not providing services to the proper level.
The workforce risk profile includes:
- Staff turnover and loss of knowledge and experience
- Budget limitations may impact on service delivery and ability to be competitive in recruiting
appropriate skills and knowledge
- Safety of staff at the leisure centre
- Burnout or stress from high workload in some area
- Current capacity and capability to deliver expected level of service
- Lack of succession planning in some areas
- Current level of staff management skills that may pose a risk to retention or productivity
The most significant risk factors that are evident in the systems and processes assessment are in the areas
of planning and project management, physical work environment, staff communication, consultation and
conflict management.
5.4.3
New Entity
It is suggested that if possible, filling identified gaps be deferred until a final decision regarding merger
through boundary change is made. Should merger proceed, then the design of the merged workforce will
indicate whether redeployment is possible or additional employee is required, and whether this needs to
be through external recruitment or a joint position between the Shire and the Town.
It is clear from the various Plans and the finances that the current level of expenditure in non-essential
activities is not sustainable, particularly in the community services and is hampering the activities of the
Town. The new entity therefore needs to –
- Closely scrutinise the community service activities to achieve an appropriate balance between the
provision of the service and the cost of providing the service, as a low recovery rate cannot justify
an unreasonable accessibility. It has to be accepted that in the interests of all residents,
provision of an expensive service for a few is not responsible management of resources.
- Divest non-core activities as quickly as possible to an alternative suitable provider
It is suggested that the process of merger is a prime opportunity to review the rationale and justification
for non-core and non-essential activities.
Shire and Town of Narrogin
Proposal for Boundary Change– draft v.10
– Page 24 –
Both local governments have experienced difficulty recruiting and retaining appropriately skilled staff in
administrative and specialist professional areas. Staff in the Community Services directorate, not
wishing to transfer to another employer, may be able to be re-deployed to alternative duties within a
more streamlined new entity.
The importance of retaining key employees is essential to the success of the merger through boundary
change and this should be taken into account when considering the process to be applied to the filling of
positions. A fair and equitable process will reduce the risk and support transparent decision making and
confidence in the new organisation going forward. The filling of CEO and senior officer positions is
covered in detail in the Act and the Local Government (Administration) Regulations 1996. The process of
identifying and transferring people (other than the CEO) into like positions should be accompanied by
detailed policies and procedures.
5.5
5.5.1
CEO ARRANGEMENTS
Shire of Narrogin
The Shire’s CEO was appointed to the position in 1988, and remains employed under the provisions of
the Award.
The CEO fills many skill gaps in the organisation, and apart from the CEO, the Works Manager has the
widest span of control and the works area has a shortage of staff.
5.5.2
Town of Narrogin
The Town’s CEO was appointed in December 2011, and is contracted until 2018.
The span of control of the CEO and two Directors and organisational structure, needs further review due
to the increasing workload in strategic and operational planning required of those positions. The span of
control has increased in recent years due to reduction from 4 Directorates to the 2 current Directorates.
5.5.3
New Entity
Regardless of the process of the merger through boundary change, an organisation cannot have two
CEOs, and an equitable method of filling the position must be found and agreed.
There are legislative constraints, and industrial imperatives that also need to be met.
There are several options for filling the role of permanent CEO –
a) Early – the Shire and the Town conduct a joint recruitment and jointly agree on a preferred
applicant –
- Agreement can be reached prior to the resignation of elected members
- The agreement is not enforceable, and has the effect of being a recommendation to the
new entity
- Formal appointment has to be made by the new entity, either the Commissioners or new
Council
- Commissioners may be able to make the formal appointment on the merger date
- If the preferred person is one of the current CEOs, no Acting CEO would be required
o Possible timeframe to taking up the role – immediate to 4 months
b) Commissioners – commence the process, but the Commissioners complete the recruitment –
- The recruitment process could be commenced by the Shire and the Town jointly
- All decisions regarding selection for interview, and the actual appointment is made by the
Commissioners
o Possible timeframe to taking up the role – 2 months to 6 months
c) New Council – the whole process is left to the new Council –
- The new Council conducts the full process
o Possible timeframe to taking up the role – 5 months to 8 months
It is agreed by the Shire and the Town and the CEOs, that the general principles for filling the position will
be –
- Both current CEOs to resign as CEO effective 30 June 2015, without loss of benefit or
entitlement, specifying this is done in order to take up a Director position in the new entity
Shire and Town of Narrogin
-
Proposal for Boundary Change– draft v.10
– Page 25 –
Both current CEOs to be given an opportunity to be considered for the Acting CEO role, which will
be determined by the Commissioners
The position for permanent CEO will be publicly advertised and determined by the new Council,
If a current CEO is an applicant for the contracted CEO role and is unsuccessful, the person
remains in the substantive contracted role as Director.
The following matters are considered by the Shire and the Town to be linked and agreement is
conditional upon acceptance of them as a bloc –
4.1.2 – Name change being implemented within 6 months of the boundary change
4.3.3 – All elected members of both Shire and Town resigning on or prior to 15 May 2015
4.6 – Commissioners – independent Chair, 2 members from each of Shire and Town to take office
on vacation by the elected members
4.6 – Commissioners to make determination of Acting CEO to hold office from 1 Jul 2015, for up to
12 months
5.5.3 – CEOs to resign effective 30 June 2015, in order to take up a Directorship of the new entity,
without loss of benefit or entitlements, and both eligible for consideration as Acting CEO or
for appointment as the permanent CEO
5.5.3 – The Shire and Town recommend to the Commissioners that the Acting CEO be either of
the former CEOs
5.5.3 – Process for the recruitment of the permanent CEO to be initiated by the new Council
elected in October 2015
12.4 – Merger through boundary change with the Town as the continuing entity
This arrangement also sends an unequivocal message to all employees and community that selection for
every position will be –
- Made on merit, as required by the Local Government Act and Equal Opportunity Act.
- All employees will be treated appropriately and as fairly as is possible.
5.6
LEGAL AND STATUTORY REQUIREMENTS
A range of legislative and legal requirements, as well as workforce and community expectations impose
on matters relating to the workforce. Guidance is available from a range of sources including “Local
Government Amalgamation Guide: August 2013” available from the DLGC website.
Some of the legislation or legal matters that must be considered include –
a) Local Government Industry 2010 Award and National Employment Standards
b) Local Government Act provisions, such as –
- Section 5.40 of the Act sets out the principles affecting employment by local governments –
(a) employees are to be selected and promoted in accordance with the principles of merit
and equity;
(b) no power with regard to matters affecting employees is to be exercised on the basis of
nepotism or patronage;
(c) employees are to be treated fairly and consistently;
(d) there is to be no unlawful discrimination against employees or persons seeking
employment by a local government on a ground referred to in the Equal Opportunity Act
1984 or on any other ground;
(e) employees are to be provided with safe and healthy working conditions in accordance
with the Occupational Safety and Health Act 1984;
- Schedule 2.1, Clause 11 (4) provides that a contract of employment that a person has with a
local government is not to be terminated or varied as a result (wholly or partly) of an order
under section 2.1 of the Act so as to make it less favourable to that person unless
compensation acceptable to the person is made or a period of at least 2 years has elapsed
since the order had effect.
- Schedule 2.1, Clause 11 (5) provides that the rights and entitlements of a person whose
contract of employment is transferred from one local government to another, whether arising
under the contract or by reason of it, are to be no less favourable to that person after the
transfer than they would have been had the person’s employment been continuous with the
first local government.
c) Local Government (Constitution) Regulations –
- Regulation 6 (4) (g) provides that a person who, immediately before commencement, has a
contract of employment with local government A, is to be taken to have an identical contract of
employment with local government B.
Shire and Town of Narrogin
– Page 26 –
Proposal for Boundary Change– draft v.10
d) Equal Opportunity Act
- Anti-discrimination provisions
e) Contracts with existing employees
f) Known future legislative amendments that will apply due to coming into force prior to merger, such
as limiting CEO payouts to 12 months.
5.7
5.7.1
FUTURE WORKFORCE
Structure
Given the consultant’s recommendations of further refinement to the Town’s organisational structure, the
opportunity provided by possible merger is a convenient time to review organisational capabilities and
priorities.
In combining the workforces to deliver the services required to meet community expectations, there would
be a larger focus on community services. A well-planned, governed and managed workforce is built
through training, development, resource sharing and effective recruitment strategies in staff turnover.
It is anticipated that the workforce would be around 115 employees with approximately 30% of those
being casual to address recreational and community services requirements, and the remainder being
permanent full time and part-time staff. In blending the workforces there is an opportunity to look at the
efficiency and effectiveness of those services in their current staffing arrangements and service levels.
The proposed organisational structure is three tiered, with a three directorate management structure,
which seems to be the preferred model for the majority of Councils this size, offering appropriate span of
control and affordability. This consolidates a middle management structure to allow for more delegation
of duties to free up senior executive time to address the increasing governance and planning activities.
As there is a stated desire by the elected members to retain the current CEOs, the makeup of the
divisions may change according to final position allocation of the permanent CEO when blending the two
workforces. The interim Directorates would accommodate a role for them in their preferred discipline.
It is considered that the interim arrangement may be 4 Directorates –
- Finance and Corporate Services
- Community and Strategic Development
- Regulatory and Compliance Services
- Infrastructure and Technical Services
This will need further refinement once CEO arrangements are finalised, possibly to a 3 Directorate
structure, of which one example is provided in Table 5.7.
Aligning these Directorates with the Vision and Strategic Priorities/Key Result Areas of the Shire and the
Town –
Shire
Our Shire is thriving and strong
Vision
Strategic Priorities /
Key Outcome Areas
Our community is strong and
motivated
Town
New Entity
Directorate
Prosperity and growth as a regional
centre
Thriving local economy
Economic development
CEO
Motivated, sustainable community
Community development/service
CEO, RCS, FCS
Well managed natural environment
Parks & gardens, and the natural
environment
ITS
Strong, respect-worthy leadership
Governance & corporate services
CEO, FCS
Waste management
RCS
Infrastructure and asset management
ITS, FCS
Longer term strategies over 10 years
Allocate as
appropriate
Shire and Town of Narrogin
5.7.2
Proposal for Boundary Change– draft v.10
– Page 27 –
Current staff – transition to new entity positions
A preliminary draft organisational structure has been prepared, but is not able to be finalised until the new
entity is in place, and a contracted CEO is appointed. However, predictions can be made as the majority
of tasks are known, even if reporting and authority lines may be amended in time.
Copies of the policies and procedures should be distributed to all employees before the process begins. It
is also recommended that information sessions be provided to allow staff to ask questions and clarify any
issues relating to the filling of positions.
5.7.3
Process and timeframe for filling positions
It is suggested that should one of the current 4 senior staff resign prior to appointment of a permanent
CEO for the new entity, consideration be given that an acting appointment only be made, with a term
limited until the permanent CEO takes office.
Other than CEO, all other current staff will be able to have their position identified and settled prior to
merger through the work of the HR consultant.
There is no reason why new positions/vacancies cannot be advertised and the person taking
responsibility for that Directorate in the new entity making the appointment, since once appointed, the
employee is protected by provisions of the Act guaranteeing continuity of employment.
One of the early priorities for the HR consultant will be to refine the draft organisational structure as far as
possible. Once this is done, although there may still be some changes once a new Council and new CEO
are in place, the vast majority of roles will be known and negotiation with the employees can then take
place for them to identify –
- Which role they wish to pursue –
o Remain with a similar role
o Use the merger as an opportunity for retraining into a new position
- Positions for which there may be competition
o Conduct a competitive selection process
- Preferred work teams
5.7.4
New workforce – building culture
This aspect of merger will rest heavily on the HR consultant to guide its development.
Crucial aspects will be to ensure –
- fair and equal treatment is not just in place but observable
- prompt and accurate recognition for achievements
- equal access to benefits and opportunities
- clarity of purpose and goals
- accountable and open management
- confidentially of concerns and complaints
- prompt attention to concerns and complaints
- vigorous action to counteract negative behaviours – intimidation, unethical actions etc
Some of the options that may present are –
- cooperative work positions
o integrate road maintenance
o integrate payroll and rates
o staff start working across the organisational boundaries as soon as able
- shared functions and activities
o social events
o corporate bowls with teams comprising members from both workforces
o shared benefits such as subsidised access to aquatic centre
- joint workforce briefings
o close office and works early one afternoon every few months
Shire and Town of Narrogin
Proposal for Boundary Change– draft v.10
Several other options may be worth considering –
- New uniforms to go with the new logo
- Internal “Ombudsman”
5.7.5
– Page 28 –
5
Job Description Forms
Almost all positions will require review of the applicable job description forms, even if only to ensure that
the recorded lines of responsibility and supervision are correct.
Major changes will be required to the JDFs of Director and Executive/Senior Manager levels due to
changes in span of responsibility. Lesser changes will be needed for Manger/Section Senior positions.
The majority of roles will remain essentially the same, although former Shire staff will notice that the
spread of their responsibilities will diminish as greater specialisation and focus is possible. However,
most of the front line staff, whether office or depot will be carrying out very similar roles and functions.
The HR consultant will need to coordinate the review and preparation of the JDFs, with a target of having
the draft finalised before April 2015, for circulation to staff. Senior JDFs may not be able to be finalised
until the Acting CEO or contracted CEO takes office.
5.8
HR AND CHANGE MANAGEMENT – SUMMARY
While major changes are always stressful, much can be done to reduce the levels of concern that may be
felt. Accordingly reliance on two principal workplace consultants would be useful –
- HR consultant – to oversee workforce development, integration, structure and initial melding.
Being external to the current or future entities, bringing an observable independence to a process
that demands integrity and equity.
- HR Risk management – to ensure the welfare of all employees throughout the process, and
providing a safe place for concerns and fears to be raised.
A merger will bring significant benefits to staff, with tangible economic benefit to some through increased
pay or benefits as the result of equalisation for similar roles or increased responsibilities. It will also
bringing opportunities for –
- Career path development
- Improved skill levels as the result of specialisation
- Broader range of positions within one organisation
- Greater integration and coordination of work, therefore clarity of task and function
- Career and skills development open up options for advancement within the new entity and
externally
A larger organisation may also be able to develop some new roles, perhaps by redeploying existing staff,
or through the creation of a completely new position. These include –
- Compliance Officer
- Grants Officer
- Depot/Stores Clerk
A change of the magnitude of merger through boundary change should be the opportunity to investigate
in detail the rationale and justification of activities. This close examination of all levels of the workforce,
may identify some activities as not being core functions for the new entity. Redeployment of those staff
into other roles creates opportunities, or if appropriate transfer to other organisations may free up
administrative time.
Prompt attention to concerns that may be expressed and observed negative behaviours will be crucial.
5
Although a large organisation, Andrew Patterson, Warringah City Council, has a useful presentation “Building a Positive and
Ethical Workplace Culture” at http://www.apsac.com.au/2013conference/2011/2011papers.html
Shire and Town of Narrogin
6
Proposal for Boundary Change– draft v.10
– Page 29 –
OPERATIONAL MATTERS
Refer also Section 13.2 Pre-Merger Alignments
6.1
6.1.1
STATUTORY PLANNING
Shire of Narrogin
The Shire’s Local Planning Scheme No. 2 came into effect on its publication in the Government Gazette
on 3 October 1997.
No planning policies have been adopted by the Shire.
The Shire does not currently have a Planning Strategy in place, but together with the Town is working
towards a joint Planning Scheme and Planning Strategy.
6.1.2
Town of Narrogin
The Town’s Local Planning Scheme No. 2 was originally published in the Government Gazette on 17
June 1994.
The planning policies adopted apply only to the Town.
The Town does not have a Planning Strategy in place, at this time, but is coordinating a joint Planning
Scheme and Planning Strategy with the Shire.
Current efforts have been underway for a number of years, and are now approaching the point of final
advertising and adoption.
6.1.3
New Entity
The Joint Scheme relates to the Town and Shire of Narrogin only. Cuballing is not part of the joint
scheme.
Unfortunately the new Joint Town Planning Scheme has not been finalised. Due to the significance of
changes proposed following the close of advertising, the Shire and Town must now seek permission to
readvertise the joint proposal. Given the above, the new joint Scheme and Strategy are perhaps 6 to 12
months away from finalisation and Gazettal.
Given the exceptionally long timeframes to progress new Schemes and Strategies, it is strongly
recommended that Gazettal of the current new joint Scheme be pursued as a priority, as recommencement of the process not be considered as a viable option.
The Strategy was prepared and advertised concurrently with the Scheme. Like the Scheme, the Strategy
must be readvertised.
The Constitution Regulations r.6 (4) (d), provide for a Planning Scheme that is in place at time of merger,
continues to have effect over the same area as prior.
6.2
6.2.1
LOCAL LAWS
Shire of Narrogin
According to DLGC’s website Local Laws Register, the Shire has 6 local laws dating from 1933 to 1957,
all made under the Road Boards Act, superseded by the Local Government 1960, which has been
superseded in turn by the Local Government Act 1995. One local law dates from 2005.
A review of the older local laws should be implemented as soon as possible to repeal any that no longer
have relevance.
DLGC website does not list other local laws adopted including – Dogs, Health etc, which may be in place.
Shire and Town of Narrogin
6.2.2
Proposal for Boundary Change– draft v.10
– Page 30 –
Town of Narrogin
Like the Shire, according to the Local Laws Register on DLGC’s website, the Town appears to have quite
a few local laws, some dating back to 1926 that appear to remain current.
The Register lists 33 as being made prior to the current Act, under either the Road Boards Act or the
Local Government Act 1960. A further 5 made under the Local Government Act 1995 remain current
DLGC website does not list other local laws adopted including – Cemetery, Dogs, Health etc, which may
be in place.
A thorough review of Local Laws should commence as soon as possible to repeal any that have no
relevance.
6.2.3
New Entity
The existing local laws carry forward to the new entity, applicable to their current areas in accordance with
the Local Government (Constitution) Regulations1996 r.7 (2).
With potentially so many local laws still being current, the process of integration and review of them for
the new entity could be eased substantially by an early review of the local laws by the Shire and the Town,
repeal to clear the books, and preparation of drafts for consideration by the new entity.
A new Fire Control Local Law and Fire Control Order are considered critical, so as to be in place for the
2015-2016 summer period.
Standing Orders are considered important to be in place at an early date. Unlike almost all other local
laws, Standing Orders cannot be identified to a specific area.
While new local laws cannot be made until the new entity is in place, there is no reason that the
preparatory work could not commence well before, and drafts ready for adoption as soon as possible
after merger date.
6.3
6.3.1
AUTHORISED OFFICERS
Shire and Town of Narrogin
Both the Shire and the Town have a range of authorised officers including such appointments as –
- Bushfire Fire Control Officers, including –
o Chief BFCO and Deputy Chief
o Fire Weather Officers
o Permit Issuing Officers
- Dog and Cat Control Officers
- Litter Control Officers
- Rates and Rebates Review Officer
- Freedom of Information and Review Officers
- Complaints Officers
Some appointments may be held by default if no other appointment is made.
6.3.2
New Entity
The Constitution Regulations r.6 (4)(h) provides for authorised officers to continue in place. Where an
appointment is by default, the new structure will automatically provide for an authorised person, as in the
case of Complaints Officer under the Act. Some appointments are held as the result of the function of
the person, such as some Litter Control Officers.
A range of appointments are within the authority of the CEO, such as FOI Officer, Rates and Rebates
Review Officer etc. These will still need to be reviewed and the appropriate appointments made.
Shire and Town of Narrogin
Proposal for Boundary Change– draft v.10
– Page 31 –
Of most importance are the appointments that are made by decision of Council. In this regard, those
made under the Bush Fires Act are critical, as there cannot be two Chief BFCOs for the same area, and if
there are several Deputy CFCOs, a decision must be made so as to avoid overlap.
It is acceptable to appoint different Chief BFCOs to defined areas, and to appoint one as the Deputy to
the other. Some Councils appoint multiple Deputy Chief FCOs, with the resolution defining either
separate localities/areas of responsibility, or alternatively, the seniority of the appointment.
It is suggested that if the new entity is to be split into separate responsibilities, then a single Chief and
single Deputy Chief be appointed in each area.
All appointments of authorised officers under all enabling legislation should be reviewed and principles for
area and extent of authority agreed. Once the organisational structure is known, a schedule of
appointments can then be prepared for immediate consideration by the new entity’s Commissioners and
CEO on Day 1, as one of the first actions to be taken.
6.4
6.4.1
DELEGATIONS AND POLICY
Shire of Narrogin
Shire delegations are reviewed annually as required by the Act and are separated according to –
- Delegations to Committees
- Delegations to CEO
- Statutory matters not being Delegations
The Shire has 12 matters recorded, of which 11 are actual delegations.
All policies of the Shire were reviewed in 2009, and an extensive re-write of the Policy Manual was
undertaken. There have been a range of amendments and new policies adopted since that time so that it
remains current and applicable. Currently, there are 80 policies in place, and the arrangement is
generally according to functional area.
6.4.2
Town of Narrogin
The Town has 65 delegations and was recently reviewed in February 2013, and despite appearing to be a
large number, the CEO has advised that it is working well.
The Policy Manual records 127 policies, and generally follows functions. No indication is given of last
detailed review.
The Town has also developed a separate Procedure Manual which is essentially CEO and Director
instructions to staff. These are matters not considered requiring any Council input and are administrative
in nature.
The documents do give the impressions that delegations, administrative policy, planning policy, and
procedure are mixed, and this is due to a different approach being taken when compared to the Shire.
6.4.3
New Entity
There is a large difference in philosophy, presentation and variances in the details and application of the
delegations and policies, and extensive work will be needed to align.
In particular, the existence of a high number of delegations has the potential to create a significant
workload, as the exercise of every delegation requires a written record be created.
Key anomalies or differences include –
- Definitions of what constitutes a delegation, a policy, an authority and an instruction
- Separation into administrative and planning policies, as administrative policies can be made by
simple majority of Council, and are effective immediately, whereas planning policies have a
statutory procedure to follow which includes public notice/consultation
- Removal of procedural matters that are the responsibility of the CEO and do not require Council
involvement
Shire and Town of Narrogin
Proposal for Boundary Change– draft v.10
– Page 32 –
The definition is the most significant difference between the Shire and Town, as the Shire’s documents
provide fundamental definitions that are rigidly used to develop their documents, eliminate crosspurposes and to provide direction –
“Authority” means the permission or requirement for a Committee or the CEO to act in accordance with:
the Local Government Act or other legislation or regulation,
a delegation made by Council,
a policy made by Council, or
a specific decision by Council.
“Delegation” means the authority for a Committee or the CEO to act on behalf of Council, where the power is
either specifically or by implication, intended to be exercised by the elected members, rather than an
organisational responsibility.
“Policy”, as the context requires, means either:
a procedural direction to officers to implement Council’s wishes or instructions in a particular way;
or
the authority for officers to act, where that authority is not considered to be a delegation, but more
procedural in nature.
“Instruction” means the requirement for a staff member to act in accordance with a direction given by a
senior officer of Council.
As a result of this fundamental difference in approach, the task of alignment will be substantial. The
basis of the approach to be taken should commence with the questions – what are “delegations, policies,
authority, procedures, instructions”, and how they are defined. Once this fundamental agreement is in
place, the task should be fairly straight forward even if lengthy.
It is suggested that review of the Delegations Registers and Policy Manuals be undertaken as soon as
possible, with the aim of –
- Alignment by March 2015
- Adoption by the Shire and Town in April 2015
- Identical processes and provisions etc for familiarity and early consistency
- Merge into individual draft documents by 30 June 2015 (Delegations Register, Policy Manual,
Planning Policy Manual, Admin Procedures and Instructions)
- Adoption of new documents in July 2015
It is suggested that delegations be separated as to their head of power to avoid confusion and as
legislation other than the Local Government Act can delegate to different officers. DLGC have advised
that –
… the LGA can only be used to delegate authority under the LGA. If the Council is wanting to delegate
powers or duties governed by other legislation the relevant act must have a head of power that allows for the
power or duty to be delegated and if applicable "on delegated".
It is further suggested that each delegation and policy records its individual history of amendment, so that
if an action is queried, variations can be easily tracked, and reasons for differing decisions quickly
established.
6.5
6.5.1
SERVICES DELIVERED
Shire of Narrogin
Services delivered by the Shire are focussed around the construction and maintenance of roads, and the
needs of rural / farming activities. Some services are delivered to urban areas on the outskirts of
Narrogin, but these are undertaken in partnership with the Town. Economic development efforts are
largely driven by the needs of the agricultural industry, the light industrial area and airport development.
A full range of administrative services as required by the Act are also delivered.
The Shire does not have a customer service charter.
6.5.2
Town of Narrogin
While the Town does have responsibility for roads, community services such as recreation and sport,
youth and social development have a large role. Economic development for the area is also of major
interest as the Town is the centre for a wide range of business and government services.
Shire and Town of Narrogin
Proposal for Boundary Change– draft v.10
– Page 33 –
Again, a full range of administrative services as required by the Act are delivered.
The Town does not have a customer service charter, but is in the process of drafting one.
6.5.3
New Entity
The differences in services delivered by the Shire and the Town may vary in degree, but there are
minimal gaps between them, or with other local governments.
The development of a customer service charter by the staff involved may provide several particular clear
benefits –
1. A way of staff becoming familiar with each other, identifying strengths and knowledge, and
showing difference in methods or standards
2. Opportunity for the staff to negotiate between themselves agreed standard methods and actions.
3. Community assurance of expected and deliverable standards
The value is in the process, and depends on the staff being heavily involved, directing and controlling the
process, and not a charter developed and imposed by consultants or executive staff.
Service type and frequency is expected to vary very little, as the functional areas and tasks have small
overlap. The two main areas of apparent overlap are –
- Administrative – while there will be some streamlining required, no reduction in staff numbers is
necessary as the workload will not reduce.
- Works – although there appears an overlap, in reality it is slight, since the Shire is focussed on
road construction and maintenance of gravel roads, while the Town is focussed on parks and
gardens etc, as roadworks is generally limited to patching, with any construction or major
maintenance being contracted out.
Service improvements will most likely come about as the result of increased coordination and improved
skills as the result of specialisation through targeted attention. As activities and responsibilities become
more aligned throughout over the enlarged district of the new entity, benefits from the resulting
comprehensive integration of coordination and skills are expected.
A new entity has the opportunity to streamline many operations, as the administrative boundary that
exists now does cause some confusion and duplication of effort. It is not unusual that issues under the
control of one are initially queried with the other – infringements, debtor or creditor enquiries, etc.
6.6
6.6.1
CONTRACTS, LEASES, AGREEMENTS
Shire and Town of Narrogin
Both the Shire and the Town have a range of contracts, leases and agreements. Generally they fall into
two categories, each having separate sub-categories.
Examples include –
For Shire/Town use
For Private use
For commercial use
Railway Reserve – Town Works Depot
Refuse / recycling contracts
Employment contracts
Funding agreements – roads, facilities,
services
Regional Waste Disposal initiative
Construction / development
Airport – hangar space
Buildings / land – office / business space
For community use
Recreation areas
Funding agreements – community services
Buildings / land – community / emergency
services
Buildings / land – sporting clubs
Shire and Town of Narrogin
6.6.2
Proposal for Boundary Change– draft v.10
– Page 34 –
New Entity
While the Constitution Regulations r.6 (4)(g)(i) clearly indicate that the new entity assumes all obligations
and rights of contracts and leases, specific provisions within the individual contract, lease or agreement
may specifically exclude assignment.
It is expected that it would be extremely unlikely that any party would wish the arrangement to cease,
however, there may be instances where it is appropriate that it be closely reviewed for applicability and
value.
Regardless, it is suggested that all contracts, leases and agreements be reviewed, and that written
agreement of all parties to continuation of that arrangement with the new entity be made.
Commencement of this work could commence at any time after decision is made to merge, with the
target for agreement by April 2015, and a sign off by the new entity being authorised as soon as possible
after merger date.
6.7
6.7.1
INSURANCES
Shire and Town of Narrogin
Both the Shire and the Town utilise Local Government Insurance Services for the full suite of insurances
– employee, business, indemnity, property, fleet, liability etc. LGIS have provided a very high quality
service since their inception, as well as a range of peripheral activities such as HR risk management,
occupational health and safety programs etc.
6.7.2
New Entity
As the services of LGIS are of such high quality, and are priced well under other insurers there is no point
or intention of changing insurance arrangements.
In the lead up to merger through boundary change –
- LGIS to be requested to ensure coverage for the new entity past the date of the 30th June. This
will enable the new entity to authorise and sign the new contracts, since the re-insurers require
the authorisation of the new entity and new / Acting CEO
- LGIS OHS Risk Management – to commence alignment of OHS practices and processes etc.
As a regional Risk Management specialist has been appointed by LGIS, this is already largely
accomplished, however, it would be useful for the two workforces to start meeting as a single
OHS committee early.
- LGIS HR Risk Management – utilise the employee welfare services from the outset, as a
separate initiative to the HR consultant.
6.8
OPERATIONS – SUMMARY
Statutory planning is a crucial task for the management of development. Both the Shire and the Town
have recognised this, and are currently working on a Joint Planning Scheme and Strategy. As the result
of any merger, a series of amendments will be required. A single Scheme and Strategy is a major benefit
to the community.
Local laws need review, and a number of them will have overlapping application that will need to be
resolved. Authorised officers under local laws or various legislation also need to be reviewed, and
responsibilities aligned so that there is consistency in application. Since the Shire and the Town are
basically a community with a single major townsite, the broader application of local laws and authorised
officers is a benefit
Delegations and policy are internal documents, and are not likely to impact the community significantly.
They appear to be working well in their individual organisations, but significant work will be required to
achieve consistency for the new entity.
There is little duplication of effort in services delivered – apparent duplications are mainly similar services
being delivered to different group. Merger will bring significant benefit to the community through focus of
Shire and Town of Narrogin
Proposal for Boundary Change– draft v.10
– Page 35 –
effort as the result of increased specialisation, improved coordination, and a higher level of skills. The
workforce will gain an advantage through parity of benefit packages, career development and improved
opportunities.
Contracts and leases will need review and amendment if necessary. It is one of the neutral net effect
tasks that needs to be done without real impact either negatively or positively.
Insurances will be an important task to ensure full coverage is continuous for workers compensation,
liability and indemnity, and property.
Overall, there are many operational aspects that are neutral outcomes from a merger – the library will
continue to operate, staff will still do licencing, roads will be built, parks and gardens maintained.
However, there are some major benefits through coordination and specialisation that are available, and
little that would be detrimental.
Shire and Town of Narrogin
7
SYSTEMS
7.1
ICT
7.1.1
Proposal for Boundary Change– draft v.10
– Page 36 –
Shire of Narrogin
The Shire uses a modified version of Quickbooks through UHY Haines Norton, an accounting option
utilised by a number of the smaller local governments across the State.
Although UHY Haines Norton may not have many staff, they do provide a quality service both in software
maintenance and accounting expertise and process when using the package.
It has been quite satisfactory in general terms, although it is not a package designed for local
government, and requires updates each year. It does not integrate with other useful modules, but for
most small Councils this is not a significant factor as the other uses can be implemented either manually
or as a stand-alone processes such as payroll, leave accruals.
Two significant absences from Quickbooks portfolio are rating and assets, both of which have had standalone on-line systems developed specifically for local government. As they are not integrated, checking,
transfer and reconciliation of data must be done as separate tasks.
7.1.2
Town of Narrogin
In 2012, the Town converted from Civica to Synergy Soft from IT Vision. Synergy is a local government
specific package, fully integrated across a wide range of modules – accounting, rating, dog registration,
GIS compatible, records keeping, agendas/minutes, payroll and leave, asset management etc.
A wider range of resources are available from IT Vision, although they are focussed on the software
provision and maintenance, and use of the modules. Specific accounting advice or assistance is not
available and must be separately sourced.
While the implementation at the Town is still undergoing some teething problems with learning and
bringing all records up to date, the conversion has been worth the effort. Some additional assistance will
be required for a smooth transition.
7.1.3
New Entity
The Shire and Town agree that Synergy Soft from IT Vision is the preferred software platform, due to its
local government specific development, and integration of a wide range of modules.
As the existing provider for the Town and a continuing contract, despite being over $100,000 in value the
IT upgrade is considered to be exempt from tender requirements in accordance with the Functions and
General Regulations 1996 –
- cl.11 (2)(b) – IT Visions is a member of the preferred supplier panel of the Councils Purchasing
Service of WALGA, and
- cl.11 (2)(f) – IT Vision is the sole provider of Synergy Soft package for local government.
A particular benefit is that Synergy is much more widely used and familiar in local government than
Quickbooks, meaning a larger pool of experienced people in the industry for advice, assistance, potential
employees etc, as well as providing a better grounding for the new entity’s employees in other locations
should they choose.
A financial services contractor familiar with Synergy and the Town’s situation who has also participated in
pre-merger work in other situations has estimated that approx. 4 months will be required to prepare the
Town’s financial data for the Shire records to be brought in. This would be concurrent with the software
and data merging carried out by IT Vision.
IT Vision have advised that they would require an absolute minimum of 7 months, preferably 9 months, to
do all the necessary work for full operation and integration.
As the single-most important, complex and extensive task, having enormous impact on the effective
commencement in good order, one metropolitan local government IT professional considers there to be 5
Shire and Town of Narrogin
Proposal for Boundary Change– draft v.10
– Page 37 –
phases to IT transition in a merger, and estimated the transition timeframes to be approx. 9 months as
follows –
-
-
-
-
-
Phase 1 – Complete IT Audit (Timeline – 3 weeks)
o Complete audit of both Shire and Town technology platforms
o Number of connected sites
o Number of desktops, servers, network links and networked devices
o Telephony systems and mobiles
o Business applications/systems (major/minor)
Phase 2 – Detailed Target Design (Timeline – 4 weeks)
o Driven by details of the Audit in Phase 1
o Includes methodologies to satisfy due diligence in regards to choosing appropriate
business systems etc
Phase Three – Detailed Program of Work (Timeline – 4 weeks)
o Develop detailed program of work that includes individual projects required to deliver the
target design from Phase 2
o Includes breakdown of detailed project plans, budget requirements, and resource
requirements
o Includes a detailed communications plan for stakeholder engagement
o Includes a risk management plan for business as usual impact during transition
o Includes change management plan
Phase 4 – Rapid Integration Program (Timeline – 6 to 8 weeks)
o Includes a program of work that aims to fulfil the base technology infrastructure required
to deliver the major infrastructure program of work from Phase 3
o Focusses on the technical aspects (not business systems) such as user authentication
domains, security, network design, email services, desktop services, business
productivity deployment, and telephony setup
Phase Five – Execution of General Program of Work (Timeline – 22 weeks)
o Driven by the program of work from Phase 3, requires that Phase 4 is completed as the
base technology platform.
o Involves the complex work of setup and integration of business systems that the new
entity will utilise for business operations
o Includes data integration and migration
o Largest and most complex part of the transition
o Includes development and deployment of new website and online services
Total – approx. 40 weeks
Allowance does need to be made for slippage, especially since neither the Shire not the Town has
dedicated IT staff and must rely on IT Vision and other contracted providers.
With a 1 July 2015 effective date, IT transition work needs to commence as soon as transition funding is
available in consultation with the Consultant Specialist Accountant.
7.2
7.2.1
RECORD KEEPING
Shire of Narrogin
The Shire does not use an electronic records system, relying on a manual system of recording and filing.
7.2.2
Town of Narrogin
The Town uses the Synergy records keeping module, and has partially integrated an electronic records
system.
7.2.3
New Entity
In early 2013, a number of consultants were approached to provide submissions to investigate options. It
is proposed that this work would be re-commenced, with initial tasks being –
- Investigate current systems
- Work that is needed for the new entity to function from Day 1
- What records need to be integrated into new systems
- What can be left for reference if/when needed
Shire and Town of Narrogin
-
Proposal for Boundary Change– draft v.10
– Page 38 –
Process for archiving of old records
Compliance with State Records Act, SRO guidelines, and the General Disposal Authority is
essential, and Keywords for Councils is therefore highly desirable.
Following this work –
- Development of Record Keeping Plan to ensure compliance with the State Records Act 2000,
State Records Principles and Standards and AS/IS015489 Records Management Part 1
- Implementation of Records Management Practice and supporting Technology
- Archiving of current and historical records
7.3
HR AND PAYROLL
7.3.1
Shire of Narrogin
In the main HR functions rest with the CEO, and no delegation for appointment made to other officers.
However, the Works Supervisor is closely involved with employment of works staff.
All record keeping functions relating to HR, personnel files etc are the responsibility of the Payroll Officer.
With Quickbooks, Payroll is separate to the system, being done with spreadsheets, and the information
then imported into the accounting system. Accordingly, annual leave, sick leave, long service leave,
entitlements, rates of pay and allowances are all separate to the core records and are manually updated.
7.3.2
Town of Narrogin
Synergy has payroll fully integrated, so that there is no separate importing from a stand-alone system into
core records.
The CEO is involved with the employment of senior staff, however, the Directors have general delegated
responsibility for employment matters within their department. An officer does have specific HR
responsibility including responsibility for personnel records, but is not exclusively HR. A Payroll Officer
carries out the day to day tasks together with other tasks.
7.3.3
New Entity
By using Synergy, the system will continue to be fully integrated.
It is envisaged that a dedicated HR Officer will be required to oversee all appropriate functions.
7.4
CHART OF ACCOUNTS
7.4.1
New Entity
The IT service provider for the Town has advised –
The merging of two Councils’ chart of accounts is by no means a simple matter as expressed by
some people. There are several issues that need to be taken into consideration, some of which are
as follows:
1. No two local governments manage their accounting and reporting in exactly the same
manner.
2. Each council’s chart of accounts reside in different software solutions so the setup of
accounts differ according to how the respective software operates in each.
3. The chart of accounts is not just simply the general ledger accounts. We need to take into
consideration, the variety of resource codes, activity codes, jobs, plant, stock and other items
that complement the chart of accounts.
4. Over past years councils have undergone sweeping changes to their accounting systems so
the merger of two councils presents an ideal opportunity to review their management
structure and at the same time commence with a new chart of accounts that accommodates
such structure
Shire and Town of Narrogin
Proposal for Boundary Change– draft v.10
– Page 39 –
Development of a comprehensive chart of accounts for the new entity will be an integral part of the data
migration and integration effort.
7.5
7.5.1
RATING
New Entity
Data and software will be merged as part of the ICT process noted in Section 7.1. The phasing in of
rates increases is discussed in Section 9.
7.6
ASSET MANAGEMENT
Refer Section 11.
7.7
7.7.1
ROAD DATA
Shire and Town of Narrogin
Reference to the ROMAN Office indicates –
- Both the Shire and the Town are subscribers to ROMAN 2
- Neither are currently using it to full potential at this time
- Both Shire and Town have been entering reseal data, which is nearly up to date
- ROMAN is not sure when the last major review of the data was completed but would suspect not
since the beginning, so the long term data held is likely to be out of date –
o Neither the Town nor the Shire have done a condition survey since Roman2 came into
existence
o Current road condition data came from Roman 1
o Shire data has a date of 1901 (date entered when transfer occurred if date was blank)
o Town data is dated 2001
- Reliance on the currently held data for asset management plans therefore has potential error,
resulting in inaccurate forecasting and modelling of renewal, maintenance requirements, and
implications for long term financial plan
- Due to the presumption of the data being out of date, there will be some effects to –
o Roads component of the Financial Assistance Grants
o Calculation of MRWA Direct Grants for maintenance
o Eligibility for funding under the Roads to Recovery Program
o Asset Management Planning
o Long Term Financial Planning
7.7.2
New Entity
The critically important task to bring the data for both organisations up to date is evident and is urgent.
It is strongly recommended, that as a priority –
- A consultant be engaged to complete a road condition survey for both Shire and Town
- The information collected, together with construction and renewal projects for recent years be
entered into the ROMAN database and verified
- Preparations for merger of the Shire’s and Town’s ROMAN database be made
- A consultant be engaged to prepare and implement a fully integrated asset management process
(roads, other infrastructure, buildings), and to train staff in the use and maintenance of the
system and data.
Of lesser importance but still essential, will be the merging of MRWA road numbers used to identify
roads. This should be a simple task, noting –
- the numbers need to be agreed before the merging of ROMAN data,
- a number of roads that have portions of the road in both the Shire and the Town such as Mokine
Road, Clayton Road and others.
- The consequent changes to SLK and measurement data held in ROMAN
ROMAN data is used to determine grants by both –
- WA Local Government Grants Commission – General Purpose Grants, roads component
Shire and Town of Narrogin
-
7.8
Proposal for Boundary Change– draft v.10
– Page 40 –
Dept of Infrastructure and Regional Development – Roads to Recovery
SYSTEMS – SUMMARY
There are some major benefits to be gained from merging systems, especially since an expanded
workforce, will enable greater specialisation and development of skills for employees.
A larger organisation and workforce will mean individual employees will have the opportunity to develop
expertise on a single suite of products, and in more detail. As skills and knowledge improve, so does
speed, accuracy, flexibility, and marketability of the individual, opening up possibilities for career
advancement both in the new entity and externally.
Benefits from increased focus and broader knowledge and increased staff skills is anticipated in –
a) ICT
b) Record keeping
c) HR and Payroll
d) Finance – IT Vision Synergy Soft programs
e) Rating
In time a substantial benefit is expected for the community with increases in grants resulting from –
a) Road data accuracy and being up to date
b) Asset management planning and processes
Although not commented on, community benefit is also expected from –
a) Ranger services – single administration
b) Emergency management – particularly fire control
It is expected that there will be some major impacts on systems resulting from merger, most having long
term benefit, although high levels of stress are anticipated in the transition process. Many of the benefits
will not be visible to the public, for instance –
- Improved road data does not have any on-ground effect, but may result in higher FAGs and RTR
funding
- Record keeping improvements may result in better decision making if historical reasons can be
readily substantiated, or information flows improved
Shire and Town of Narrogin
Proposal for Boundary Change– draft v.10
8
FINANCE
8.1
LONG TERM FINANCIAL PLANNING
8.1.1
– Page 41 –
Shire of Narrogin
The Long Term Financial Plan has been completed although it is difficult to draw conclusions from its
tentative forecasts.
It would be safe to state that the Shire is in a strong financial position, however, other sources of
information indicate –
- Rates are very low comparatively, and have been maintained at low levels despite pressures on
staff and gaps in the organisational structure
- MRWA contracts and private works contribute to capital costs, particularly purchase of plant,
despite the uncertainties of future income. When needed, contractors are engaged to assist with
works so that the program can still be achieved. Use of contractors avoids the cost of constant
expansion and contraction of staff numbers and fleet
Accordingly while in a strong position, there are significant uncertainties for the future and gaps that have
not been filled.
The result is that increases in rates are essential if the Shire is to remain competitive and efficient in
meeting the needs of the community. Of most concern, the LTFP notes –
The rates coverage ratio is less than half the target ratio between FY13 – FY16. The rates
coverage ratio is forecast to improve slightly to 22.4% by FY22. If total expenses are in line with
the forecast then rates would need to double for the rates coverage ratio to be in line with the
benchmark.
Elsewhere, the LTFP notes –
The operating surplus ratio indicates that the Shire of Narrogin is forecasting an operating loss
even when operating grants, subsidies and contributions are included. The Shire of Narrogin is
relying on non-operating grants, subsidies and contributions to break even.
From FY14 through to FY19, the Shire of Narrogin is forecasting an operating loss even after
the interest and depreciation are excluded which results in a negative ratio being calculated.
This suggests that the Shire of Narrogin is producing an operating deficit and is therefore not
able to produce enough cash to cover its debt payments without relying on non-operating
grants, subsidies and contributions
Between FY13 and FY16 capital expenditure is forecast to be more than double the
depreciation expense, and from FY17 – FY20 and during FY22, capital expenditure is forecast
to be close to double the depreciation expense, implying that the Shire of Narrogin is incurring
more than sufficient capital expenditure to sustain its assets. A significant amount of capital
expenditure has been forecast for FY21 resulting in the asset sustainability ratio being
significantly higher than benchmark.
It has been noted that there is a strong disconnect of the LTFP with the Asset Management Plan – refer
Section 11.1.
8.1.2
Town of Narrogin
The LTFP clearly indicates that the Town is under financial pressure, but in recent times has actually
performed better than it is generally given credit for. However, as the LTFP remains a draft at this time,
this impression needs to be substantiated.
In reviewing the financial ratios in the LTFP, the consultant preparing the document noted –
The operating surplus ratio indicates that the Town of Narrogin is forecasting an operating loss
even when operating grants, subsidies and contributions are included. The Town of Narrogin
was relying on non-operating grants, subsidies and contributions to break even.
Shire and Town of Narrogin
Proposal for Boundary Change– draft v.10
– Page 42 –
This concern is then modified later, noting –
From FY 15 onwards, capital expenditure is forecast to be significantly higher than depreciation
expense, implying that the Town of Narrogin will be incurring more than sufficient capital
expenditure to sustain its assets.
A further note of the Town’s financial health is the assessment that –
The rates coverage ratio is slightly less than the target ratio between FY 13 – FY 16. From FY
17 onwards, the rates coverage ratio is forecast to be within 0.5% of the benchmark.
Once again, it has been noted that there is a strong disconnect of the LTFP with the Asset Management
Plan – refer Section 11.1.
8.1.3
New Entity
Given that the Shire’s and Town’s Long Term Financial Plans are first iterations, detailed conclusions are
difficult. It is made further complex due to the large discontinuity between asset management values,
renewal data etc held and the main financial system. The disconnect is completely expected – asset
management planning has only recently been introduced, and the first editions of AMPs will require much
work to ensure integration of processes and values into the main financial systems.
As the LTFP is heavily influenced by Asset Management Planning (new, renewal, maintenance,
operations), and the AMPs are also incomplete, there would seem little point in trying to get these to a
point where they are reliable, without first ensuring the validity of the AMP.
It is recommended that the Shire and Town not expend further significant resources on the LTFP until a
comprehensive asset management process is in place. The process is needed to support asset
management planning, since the AMP alone without the processes is merely compliance without being a
management tool.
The Shire and Town have agreed to request that Long Term Financial Planning not be required from the
new entity until 30 June 2017 (i.e. preparation in 2016-2017 after Asset Management is in place).
It is proposed that an AMP consultant be engaged to develop effective asset management plans and
processes that do integrate and drive the main financial systems, and the LTFP can be developed
concurrently and updated. While it is hoped that these would be complete by 30 June 2016, it is by no
means certain.
8.2
8.2.1
FINANCIAL ASSISTANCE GRANTS
Shire of Narrogin
The increase for the Shire from 2012-2013 to 2013-2014 was 8.6%, and although the estimates provided
by the Grants commissions indicate the pool of funding is expected to grow 5% per year, the growth
forecast for the Shire is only 3% to 2014-2015 and subsequent years. In its 2013-14 Budget the Federal
Government decided to freeze indexation of Financial Assistance Grants for three years.
8.2.2
Town of Narrogin
The increase for the Town from 2012-2013 to 2013-2014 was 4.3%, and like the Shire, the growth
forecast for the Town is only 3% to 2014-2015 and subsequent years. In its 2013-14 Budget the Federal
Government decided to freeze indexation of Financial Assistance Grants for three years.
8.2.3
New Entity
With recent changes to the Grants Commission disability formulae, and a lower growth in funding for the
Shire and Town individually than is indicated for the pool, there is a great need for an in depth review of
the data and for a detailed submission made.
Shire and Town of Narrogin
Proposal for Boundary Change– draft v.10
– Page 43 –
The forecast of a short-term gain over the first 5 years of merger due to the transition provisions is more
than off-set by the new entity being assessed solely under the formula in the following 5 years. There is
then a continuing notional loss of nearly $200,000 per year from the community once the transition
provisions are completed.
Accordingly, the Shire and the Town have agreed that –
- It be requested that the Financial Assistance Grants be phased in over 5 years, given the other
financial disabilities that the new entity will face with potential loss of RRG funding and increase in
rates
- Funding for a detailed submission to the Grants Commission should be included in the transition
budget, and
- The loss of eligible funding in road project grants through the Regional Roads Group be included
as a disability for the new entity.
8.3
8.3.1
ROAD GRANTS
FAGs – Roads Component
The roads component of the General Purpose Grants distributed by the LGGC is based on asset
preservation modelling, with the road data being provided through the Road Management system
(ROMAN).
The funding is as of right, and there are no application requirements.
Being data based, the grant is unaffected by merger, with increases or decreases according to the
funding pool. However, it is essential that the data is kept up to date, as the information is used for
multiple purposes, by multiple systems.
Indications from the ROMAN Office is that both data sets need to be brought up to date, are infrequently
used by the Shire or the Town, and urgently require full review (refer Section 7.7 and Section 11.1).
8.3.2
Roads to Recovery
Roads to Recovery grants are distributed by the Commonwealth Department of Infrastructure and
Regional Development.
Funding is as of right, upon application to a maximum amount determined by asset preservation formula.
As with the LGGC the data is sourced from ROMAN.
Being data based, the grant is unaffected by other factors, and increases or decreases according to the
funding pool.
In the 2012-13 Budget, the Commonwealth Government announced that it will extend the Roads to
Recovery Program for five years from 2014-2015 to 2018-2019.
8.3.3
Regional Road Group
The Regional Roads Group has wrestled with an appropriate formula for amalgamating Councils for
some time, since the first discussion by the CNW-RTG commenced, then for the CNN-RTG and now for
the Shire and Town.
The Minutes of the RRG from 15 November 2013 record that –
A Motion was put that amalgamating councils received a maximum allocation of 100% of the
average allocations the combined councils received three years immediately prior to the
amalgamation for a period of five years. A review will commence in the 4th year.
In the event that the maximum allocation of an individual council is greater than the average
allocation, the maximum allocation of the individual council will stand.
On behalf of both Councils, the Minister for Local Government was advised by letter dated 18 November
2013 –
Shire and Town of Narrogin
– Page 44 –
Proposal for Boundary Change– draft v.10
This matter has been one of contention in the RRG over the past year, with various options put
forward. To date, all proposals have significantly disadvantaged any Council that wishes to
consider amalgamation, not just the Shire and Town. Accordingly, the RRG funding formula for
road grants is felt to be a major impediment to the willingness of Councils to even consider
amalgamation.
The current resolved stance of the RRG is that amalgamating Councils will receive 100% of the
previous 3 year average as their capped allocation for a period of 5 years, resulting in the
potential funding being reduced from a combined $700,000 to an estimated $420,000. After this
time the amalgamating Council will be eligible to receive only one maximum funding allocation
being $350,000, effectively halving the potential funding of the Narrogin Councils. The Town
and Shire have attempted to reason with the RRG and proposed a negotiated stance of 75% of
the amalgamating Councils capped maximum allocation which would equate to $520,000 and
that this remain in place until a reworking of the financial distribution methods can take place.
It is felt that without potential Ministerial assistance in this matter not only could it place the
Narrogin amalgamation in serious doubt, but also any other rural amalgamation.
The Shire and the Town have agreed that the revised Regional Road Group funding formula places the
proposed merger in serious jeopardy unless additional funding or an equitable formula can be
implemented.
The following table shows the maximum grants since 2007/08 and the actual grants approved for the
Shire and Town. As can be seen it is rare for either Council to seek the maximum grant. The Shire has
done this once in 2014/15.
Shire of Narrogin and Town of Narrogin
Regional Road Project Grants
Year
2007/2008 2008/2009 2009/2010 2010/2011 2011/2012 2012/2013 2013/2014 2014/2015
Maximum Grant
234,000
226,500
225,000
250,000
250,000
325,000
350,000
335,000
Maximum Grant x 2
468,000
453,000
450,000
500,000
500,000
650,000
700,000
670,000
Shire of Narrogin
171,900
174,600
179,015
223,238
238,416
286,050
327,792
335,000
Town of Narrogin
72,000
60,000
29,416
110,214
89,973
208,533
78,299
113,894
243,900
234,600
208,431
333,452
328,389
494,583
406,091
448,894
2,698,340
224,100
218,400
241,569
166,548
171,611
155,417
293,909
221,106
1,692,660
4,391,000
Allocation
Difference
At the RRG meeting held in July 2014 the original decision of the 15th November 2013 was rescinded and
replaced with the following:
Amalgamating councils receive a maximum allocation of 100% of the average allocations the
combined councils received three years immediately prior to the amalgamation OR 75% of the
combined maximum allocation, whichever is the greatest, for a period of five years. After this
period they will be treated as a single entity.
If the merger occurs on the 1st July 2015 the maximum allocation that can be applied for by the new entity
will be either:


$449,856 - based on 100% of the average allocations the combined councils received three
years immediately prior; or
$502,500 – based on 75% of the combined maximum allocation.
Shire and Town of Narrogin
Proposal for Boundary Change– draft v.10
– Page 45 –
Obviously the higher figure is the amount that will be more acceptable. However the final part or the RRG
resolution limits this arrangement to five years and the new entity will only become eligible for one
maximum allocation after that period.
The Shire and the Town agree that the revised Regional Road Group funding formula places an unfair
impost on the proposed merger and fails to offer an adequate solution to this issue should other local
governments seek to merge. The Regional Road Group have committed to reassessing the funding
allocation model utilised for fairness and equity between the member Councils. It has been made clear
within the Regional Road Group meetings that this decision creates precedent against any other merger
or amalgamation that may occur within the Regional Road Group members as the same principle of
funding should be applied.
8.4
8.4.1
OTHER GRANTS
Royalties for Regions
Royalties for Regions was initially created to assist rural and remote Councils address an infrastructure
and social development backlog.
Since introduction, the Program as a whole has continually been eroded in favour of local government
areas that have high development, high population, high tourism – in effect directing the funds to the
Pilbara and coastal areas.
This has essentially robbed small inland Councils of the opportunity to compete effectively for
development funding, and of the right to a reasonable level of facilities.
8.4.2
Country Local Government Fund
The CLGF component of the Royalties for Regions Fund is now defunct – removing one of the few hopes
that rural local governments had of competing and developing.
Many local governments, including the Town have had large amounts of funding stripped from them
without notice, and have accordingly suspended those plans.
8.4.3
Services Project grants
Both the Shire and the Town regularly access grants for projects through a range of organisations, with
Lotterywest being the most accessible. Joint submissions and activities are common, such as the PACE
program, administered by the Shire, but focussed on the Town residents.
Current grants for non-capital projects include –
- Dept of Education Employment and Workplace Relations (Shire) – for Parent and Community
Engagement Program – focussed on aboriginal families and links to education system
- Dept of Education and Training (Shire) – Delivery of the Australian Early Development Index
Local Champions Program in Western Australia 2013-2014
- ARTS Narrogin (Shire) – employer of record for part time administrator of a community
organisation
- Dept of Health (Cwlth) (Town) – for Home and Community and Aged Care
- Healthy Lifestyle program (Town) – although this is not continuing after 30 June 2014
A joint application is currently being finalised for –
- Dept Sport and Recreation – Club Development Officer – intended start 1 July 2014
A notional position for a community development officer/grants officer has been identified for
consideration in the new entity.
8.4.4
Infrastructure Project grants
Shire and Town of Narrogin
Proposal for Boundary Change– draft v.10
– Page 46 –
Project funds are available from a range of sources, with two having particular importance –
- Dept of Sport and Recreation – Community Sporting and Recreation Facilities Fund
- Lotterywest
Most sources of funding require the local government to also contribute to the project, and the attraction
of gaining funding can be a real trap. Prior to any project funding, a decision has to be made as to
whether or not –
- The project is of actual community value for the long term
- The cost of resident contribution is justified
- Capital investment has the hidden cost of asset management and maintenance that is very often
overlooked
8.4.5
Regional Development Australia
Funding programs under the Commonwealth Dept of Infrastructure and Regional Development have
successfully delivered substantial funds to rural communities for a number of years.
In recent years their effectiveness has been diminished with the removal of their capacity to determine
and distribute grants, becoming mainly a facilitator and advisor for Commonwealth and community to the
other.
The Wheatbelt RDA has advised –
Unfortunately there are no grants available at present. We did have the RDA Fund, which was
an initiative of the Labor Government but under the Coalition there will be no contestable grant
process that we are involved in until 2015 when the National Stronger Regions Fund
commences.
8.4.6
Grants generally
Some on-going grants for specific purposes are received, such as –
- Swimming Pool maintenance grant – a minor grant unchanged since 1967
- Fire and Emergency Services – annual operational funding and capital (buildings and vehicles)
funding on application according to Dept of Fire and Emergency Services planning
The trends for other grants in recent years has been –
- away from as of right grants towards contestable grants
- to direct funding towards population centres, or popular areas
- away from individual grants to regional purposes
- imposing Commonwealth and State priorities on funding
- limited funds for activities or service provision, favouring capital construction/renewal
The combination of these has been noted across Commonwealth and State grants, with the
discontinuation of programs such as Regional Community Local Infrastructure Program and Country
Local Government Fund. The redirection of programs such as Royalties for Regions to favour large
regional projects has cost small local governments dearly, and has a negative impact on the viability and
attractiveness of smaller towns.
The end result is that smaller communities, without the large populations of coastal areas or the
development expectations of regional mining centres, are unable to compete effectively, and are
accordingly significantly penalised by Commonwealth and State Government policy. In effect, they have
had the opportunity for equity removed.
8.5
8.5.1
RESERVE ACCOUNTS
Shire of Narrogin
The Shire has 5 Reserve Accounts, one of which might be considered to be quarantined on merger. As
at 30 June 2014, the Road Construction Reserve holds a balance of $439,284, and it may be appropriate
that it be quarantined for heavy vehicle haulage routes particularly, as a major portion of if came from
MRWA funding of grain freight routes on closure of the Tier 3 rail lines.
Shire and Town of Narrogin
Proposal for Boundary Change– draft v.10
– Page 47 –
Excluding this Reserve, those having full discretionary use amount to $385,940 or $ 697 per assessment.
8.5.2
Town of Narrogin
The Town has 14 Reserve Accounts of which 13 are expected to retain a balance at 30 June 2014. Of
the Reserves having a balance, 4 of them should be quarantined for various reasons –
- Community Assisted Transport vehicle – created from contributions of the users of the vehicle
- J Hogg Memorial – a bequest made to the Town specifically for Town recreation facilities
- Aged Care Development – from contributions/surplus of operations aged care operations partially
funded by grants
- Unspent Grants and Contribution Reserve
Excluding the Reserves created from contributions or grants, the discretionary Reserves plus the
Emergency Services Reserve total $ $970,665 at 30 June 2014, or $461 per assessment.
While this is lower than the Shire’s, it must be acknowledged that the Town has had very significant
expenditures and recurrent costs in a number of areas, notably in community services and recreation;
however, significant contributions to the reserves have been made.
An Unspent Grants Reserve has been created as required, so as to quarantine funds that have
contractual or legal restrictions on their application.
8.5.3
New Entity
The Shire and Town have agreed that the following Reserves will be quarantined for use solely within the
former districts, in according with the purpose created –
- Community Assisted Transport vehicle Reserve
- J Hogg Memorial Reserve
- Aged Care Development Reserve
- Unspent Grants Reserve
- Road Construction Reserve – to be renamed Grain Freight Routes Reserve
LOANS – PRINCIPAL OUTSTANDING & ANNUAL REPAYMENTS
8.6
8.6.1
Shire of Narrogin
At as 30 June 2014, the Shire had 3 loans with principal outstanding –
Loan No.
Purpose
Principal 30 June 2014
49
Town of Narrogin – Contribution to Construction of Leisure Centre
46,990
50
Town of Narrogin – Repayment of Equity in Narrogin Joint Works Unit
17,236
51
New Depot Construction
126,333
Principal outstanding as at 30 June 2014 is expected to be $344 per assessment.
Impact of loan repayments on rates is much more than the Town with approx. 10.2% of rates spent on
loan repayments in 2013-2014, and 7.7% being budgeted for 2014-2015.
The assumption that the Shire is in a substantially better situation in regards to loans outstanding and
annual repayments is unsubstantiated, although it should be noted that the Shire’s loans will be repaid at
an earlier date.
No new borrowings are proposed in 2014-2015.
Overdraft facility is not expected to be used in 2014-2015.
8.6.2
Town of Narrogin
At as 30 June 2014, the Town had 5 loans with principal outstanding –
Loan No.
Purpose
Principal 30 June 2014
Shire and Town of Narrogin
– Page 48 –
Proposal for Boundary Change– draft v.10
121B
Narrogin Regional Recreation Complex
440,530
124
Westpac Bank
125
Corporate Software & Server
178,857
126
Town Hall Renovations
257,837
127
Industrial Land Development
168,734
88,879
Principal outstanding as at 30 June 2014 is expected to be $539 per assessment.
Impact of loan repayments rates is much less than the Shire with approx. 6.5% of rates spent on debt
service in 2013-2014, and 5.9% being budgeted for 2014-2015.
No new borrowings are proposed in 2014-2015.
Overdraft is not expected to be used in 2014-2015, although facility is in place for up to $400,000.
The principal outstanding and annual repayments improves markedly if merger proceeds, since part of
the transition cost will be retirement of the Loan 125 taken out for computer hardware and software
upgrade in preparation for merger if the funding will permit
8.6.3
New Entity
Historically, there has been concerns that the Town has huge debts to service, which will occur at the
cost of Shire ratepayers in a merger, however, this is unjustified. In fact, as at 30 June 2014, the Shire’s
principal outstanding per assessment was close to the Town’s figure, at $539 and $344 respectively;
however, the impact of repayment of the loans is far cheaper to the town residents.
The figures compare very well with other Councils, including metropolitan local governments.
Neither the Shire nor the Town are overburdened with debt, and the new entity therefore would assume a
quite modest financial obligation.
8.7
8.7.1
FEES AND CHARGES
Shire of Narrogin
Reflective of its limited scope of activities, the Shire has a much less extensive and complex schedule of
fees and charges.
Two categories of the fees and charges schedule have very high importance to the Shire –
1. Private works rates – for hire of plant etc, has resulted in a large economic benefit to the Shire
over the years through some quite significant contracts with MRWA
2. Aerodrome rents – both as a method of control of use of the facility and to general income to
offset the cost of maintenance and operations
8.7.2
Town of Narrogin
The Town has a far longer list of fees and charges covering a wider range of activities, consistent with a
much greater focus on facilities, services and regional activities.
The greatest impact on activity rather than financially, is from the user charges for leisure and meeting
facilities – Recreation Complex, Aquatic Complex, Community Complex, Town Hall Complex etc.
8.7.3
New Entity
Given the different focuses of the Shire and the Town, it should be a relatively simple task to align the
categories and sub-categories of charges, as outlined in Table 8.7.
While some adjustment will be needed to about 8 categories, three require particular attention –
Shire and Town of Narrogin
Proposal for Boundary Change– draft v.10
– Page 49 –
a) Rates penalties and admin charges etc – the Shire and the Town at the moment have two quite
different approaches, especially with rates discount and incentives, but also in the penalties and
charges.
b) Private works – the Shire does extensive private works, while the Town’s is far less. Due to the
different operational tasks, the fleets have some differences, and consequently the classes of
machinery do not fully overlap, assisting alignment. Care needs to be exercised so as not to
jeopardise the attractiveness to MRWA of the organisation for continued contracts
c) Miscellaneous charges – while not large in economic terms, there is a wide range of chargeable
items, especially for the Town. Consistency of fees between the two organisations, as well as
within the organisation should be relatively simple to achieve.
There is no reason why the fees and charges of the two organisations could not be aligned in the Budget
for 2015-2016, prior to merger.
8.8
ANNUAL BUDGET
A thorough start on a mature Asset Management Plan that can be updated, maintained, and most
importantly, understood and utilised by staff will be essential for the development of an Annual Budget
that addresses the renewal gap matters discussed in Section 11.1, and is also crucial for the Long Term
Financial Plan.
Work towards the first annual Budget of the new entity, needs to commence as soon as a consolidated
chart of accounts is available, supported by at least first draft of the AMP. An LTFP in any sort of
condition will be useful, but the first Budget will be one that is setting the baseline for many new and
consolidated activities.
If the effective date is to be 1 July 2015, work on the financial and budget will need to commence
immediately the decision is made by the Shire and the Town to merge, in anticipation of LGAB
recommendation and the Minister’s decision; however, this is dependent on availability of key contractors.
Setting up of the Budget processes and documents will be part of the financial assistance sought as part
of the transition funding for the new entity. As users of IT Vision, the Town already has access and
familiarity with many template documents, including the Excel spreadsheets that integrate with the
accounting software.
It would be expected that the new entity’s accounting package would have sufficient readiness to
commence work on the Annual Budget at least several months prior to merger. Budget work needs to be
carried out concurrently with the integration of the Shire and Town financial records.
It would be valuable to have a first draft available for the Shire and Town to review and comment on prior
to merger date however, at this late stage it is not expected that this will be able to be completed prior to
the merger date of 1st July 2015.
Estimates for a Rate Setting Statement forecast are provided in the Tables indicate that serious
consideration needs to be given to reduction of expenditures in the Town, a view reinforced by the
consultants preparing the Long Term Financial Plan.
Table 8.8 Annual Budget – Rate Setting Statement needs to be considered with caution –
- Both Shire and Town have received substantial one off grants or income which is non-recurrent
- Corresponding expenditures are not necessarily made in the year of receipt
- There are differences in how the Shire and the Town classify some incomes and expenditures
- The forecasts are based on the average of the Budget and previous 3 years annuals, excluding
the year of highest income/expenditure and adding a growth factor for each year
- Amount to be raised from rates is as estimated from the rates modelling done for Table 9.E
- The deficit indicated for 2015-2016 may be high, however, taking into account the increased
“ratchet up” wages and other costs of merger, and the comments of consultants preparing both
the LTFP and AMP, they are considered to be of the right order of magnitude
- Accepting that they are still draft, the Rate Setting Statements of the Shire and Town when added
together, are not considered to present an accurate view of the financial situation for the new
entity.
Shire and Town of Narrogin
8.9
Proposal for Boundary Change– draft v.10
– Page 50 –
FINANCE – SUMMARY
The Long Term Financial Plans need to be considered as interim due to disconnect with asset
management planning, but can still serve to guide the development of the financial systems, processes
and new entity Budget.
The Long Term Financial Plan appears to indicate that the Shire’s rates need to roughly double, while the
Town’s are reported to be about on target. This conclusion is tentatively supported by the Asset
Management Plan which indicates that the asset renewal gap for the Shire is equivalent to a 98% rate
increase with the Town’s asset renewal gap being less than 1%.
However, these assumptions must be treated with caution, as the annual statements contradict these
statements. In addition, the two Plans are in their first iteration, and there remains significant work still to
do for full integration across all financial systems.
Financial Assistance Grants are a concern, and while some may be alleviated by a detailed review of
road data, the long term outcome of grant reductions is a concern.
The biggest single economic cost of the merger proposal is the reduction in eligibility for Regional Road
Group grants. It is a significant hurdle to overcome and a major impediment to merger. As stated
earlier this matter has been resolved with the first 5 years being at 75% of the eligible funding for the two
Councils but after that the new entity will be limited to one maximum allocation of funding and it would be
expected that this would be claimed. The new organisation will need to plan for this reduction in funding.
Presumption of large Reserve Account funds becoming available to Town residents on merger is
incorrect, particularly if the Road Construction Reserve is quarantined for specific project/s in the rural
area that needs to be specified and it should be recognised that the Town has made considerable
allocations to its reserves over the last two years and discretionary reserve funds are nearly three times
that of the shires available reserves.
The assertion that the Shire will have to support large borrowings and debt service incurred by the Town
is unable to be substantiated. Both have very modest loan portfolios.
Fees and charges need alignment, although most are not expected to have any significant impact on
residents.
Excluding RRG funding for the moment, overall the financial situation is one of slight benefit for both
Shire and Town residents for different reasons. The big benefit arises from the greater flexibility, and
better targeting of expenditures that become possible.
However, when RRG funding is considered, the financial circumstances are negative for the community,
and it will be a social and political decision that will determine if the other benefits accruing from merger
outweigh the potential loss of these grant funds.
Shire and Town of Narrogin
9
RATE MODELLING
9.1
COMPARISON SHIRES
9.1.1
– Page 51 –
Proposal for Boundary Change– draft v.10
2013-2014 Rates and Minimums
In considering rating matters, the current levels from adjoining shires was considered –
Comparison
2013-2014
Shire
Town
Cuballing
Wagin
Wickepin
Williams
Katanning
Unimproved Value –
Rate in $
0.00500
None
0.006091
0.006940
0.009685
0.005714
0.008753
Minimum $
525.00
None
600.00
480.00
310.00
460.00
760.00
Gross Rental Value –
Rate in $
0.05500
0.11290
0.065802
0.112400
0.075246
0.051467
0.089420
Minimum $
525.00
935.00
550.00
480.00
310.00
460.00
760.00
Katanning is listed as a comparison being in very similar circumstance as Narrogin, having significant
regional responsibilities, and similar expectations from both urban and rural communities.
Observations –
- All adjoining shires have higher UV rate than the Shire
- The Town has the highest GRV rate of the comparison Councils, by a very small margin over
Wagin
- Wide range of minimums for both UV and GRV
- Cuballing and Williams both have relatively small townsites and large rural areas
- Wickepin has a relatively small townsite with relatively high GRV, but also a much higher UV than
other shires. It is known that they levy a higher UV to support the town, in order to attract people
for townsite development
In reviewing the data and what is known of the comparison shires, it was felt that Wagin should be the
primary comparison –
- Large rural area
- Sizeable town compared to the rural area, although smaller than Narrogin and smaller in
comparison to rural area than Narrogin
- Although smaller, Wagin has many similar responsibilities, obligations, services and facilities not
in other towns, for example –
o Used by surrounding communities as a service centre
o High level of recreation facilities such as 50 metre swimming pool, playing fields,
buildings
o Provision of local government services to surrounding Councils
o Administrative and service staff (environmental health, building surveyor, librarians,
community and economic development etc) play a significantly higher role in the Council
workforce compared to works staff than in other Councils
- It is emphasised that comparison with Wagin is one year and for reference only – increase from
Wagin do not flow through to the new entity
It is emphasised that this comparison is made as at 2013-2014, and there is no intention of committing to
continue to apply the comparison for future years
9.1.2
Principles to apply to increases
The Shire and Town have agreed that the principles applying to rate increase should be –
a) GRV rate in the $ is to be increased to parity with the Town/Urban Ward.
This increase is to be applied equally over a period of 10 years and is in addition to the normal
rate increases applied by the new entity.
b) UV rate in the $ is to be increased from today’s rate in the $ to the current (2014) Wagin rate in
the $
This increase is to be applied equally over a period of 10 years and is in addition to the normal
rate increases applied by the new entity.
Shire and Town of Narrogin
– Page 52 –
Proposal for Boundary Change– draft v.10
c) All minimums are to be raised to equality with the Town/Urban Ward minimum rate.
This increase is to be applied equally over a 10 year period and is in addition to the normal rate
increases applied by the new entity, except for Rural Townsite (Highbury) minimums.
d) The Rural Town site of Highbury GRV minimum is to be calculated at 75% of the normal
minimum rate, subject to there being no reduction in minimum rate.
This is considered equitable, as the Highbury townsite is separated from the main urban area of
Narrogin, and market values of vacant land in the townsite are very substantially less than in
Narrogin.
Differential rating will be required to facilitate the phase in of the Rural Ward GRV rate in $ and minimum,
and to enable a reduced GRV Rural Townsite minimum for Highbury.
9.1.3
Calculation of Parity Factor
A “natural” increase to the rate in $ and minimums will be applied to all rates based on the increase
required to generate the income identified in the Rate Setting Statement each Budget.
In addition, a “parity factor” is to be applied to Shire/Rural rates. As the Parity Factor to be applied over
the 10 year period is calculated as at 2014-2015, it will be –
Shire /
Rural Ward
Comparison
value 2014-2015
Comparison
source
Difference
Parity
Factor
UV – Rate in $
0.00530
0.00730
Wagin
37.7%
3.8%
UV – Minimum
560.00
972.00
Town
73.6%
7.4%
GRV – Rate in $
0.04800
0.097178
Town
102.4%
10.2%
GRV – Minimum
560.00
972.00
Town
73.6%
7.4%
GRV – Rural Townsite Minimum
560.00
729.00
75% of Town
30.2%
3.0%
Comparison 2014-2015
It is emphasised that the parity factor is considered the maximum acceptable loading to the “natural”
increase.
9.2
9.2.1
UNIMPROVED VALUE
Valuation schedule
Unimproved valuations are made annually for all local governments, and provided to the Shire.
Accordingly, direct comparison of UV values with neighbouring shires can be made.
9.2.2
Shire of Narrogin
Looking at the comparison shires as at 2013-2014, the Shire has the lowest rate in $ with Cuballing being
21.8% higher and Wagin 38.8% higher.
The Shire has recognised that the rate in $ is low, and over the past several years has had higher than
CPI increases for UV and has generally had a higher % increase than surrounding shires.
In part, the lower rate in $ is due to the efficiencies of the Shire, and because the rates have not been
required for building and recreation infrastructure or community services provided by the Town.
9.2.3
Town of Narrogin
The Town has no unimproved valuations.
Shire and Town of Narrogin
9.2.4
Proposal for Boundary Change– draft v.10
– Page 53 –
New Entity
As noted, parity factor calculated using 2014-2015 rates with Wagin is set as a measure, without
committing future decisions. 2014-2015 has been selected as the single reference year to establish a
base, and is not an on-going framework.
To maintain consistency with GRV rate in $ increase, phase in of UV rate in $ over 10 years through
natural increase with the additional parity factor is proposed, subject to considerations regarding the
impact of discontinuing discount arrangements.
Differential rating will not be required, as the Town has no UV properties.
9.3
9.3.1
GROSS RENTAL VALUE
Valuation schedule
Landgate, the agency responsible for valuation of property, completed a review of GRV valuation and
they took effect on 1 July 2014.
Accordingly, direct comparison of GRV values between the Shire and Town can be made.
9.3.2
Shire of Narrogin
The Shire’s GRV has been recognised as being quite low, and well under those of surrounding shires.
The Shire currently contributes approx. 165% of their total rates to the Town for support of various
services. With a total rate income of $976,248 in 2014-2015, 15% is equivalent to $ 147,000.
Accordingly, it is considered that parity of Shire/Rural GRV rate in $ to the Town/Urban GRV rate in $ is
appropriate.
9.3.3
Town of Narrogin
The Town rate in the $ is higher than all others in the comparison group, although only marginally higher
than Wagin. As noted, Wagin has many similarities to Narrogin, and the rate in $ is considered
appropriate.
Accordingly, no Parity Factor is applied to the Town’s GRV rate in $.
9.3.4
New Entity
Given the size of increase to be applied for parity with the Town/Urban, it is proposed that Shire/Rural
GRV rate in $ be phased in over 10 years, subject to considerations regarding the impact of discontinuing
discount arrangements.
Differential rating as stipulated in the Act will be used to set the rate in $ for the Rural Ward GRV and
minimums, and may need to be considered for all GRV properties, both for the phase in period and in the
long term.
9.4
9.4.1
DIFFERENTIAL RATES
Shire of Narrogin
The Shire has no differential rating or specified area rates.
9.4.2
Town of Narrogin
The Town has no differential rating or specified area rates.
Shire and Town of Narrogin
9.4.3
– Page 54 –
Proposal for Boundary Change– draft v.10
New Entity
In agreeing to a phasing in of rates parity within the new entity the Shire and Town have noted that
differential rating will be required.
After the phase in period, there will be a need to continue differential rating, at least for the reduced GRV
Rural Townsite minimum applying to Highbury.
Category
Differential
rating
Approx. % of
rateable properties
in category
Unimproved Value – Rate in $
Not required
79.3%
UV Minimum
Not required
20.7%
Gross Rental Value – Urban Rate in $
Not required
83.2%
GRV Urban Minimum
Not required
12.5%
GRV Rural Rate in $
Required
2.6%
Until parity with Urban GRV rate
GRV Rural Minimum
Required
0.4%
Until parity with Urban minimums
GRV Rural Townsite Minimum
Required
1.4%
75% of Rural GRV Minimum – no
reduction from existing minimum
Comment
As noted in Section 9.1.3 the parity factor loading in addition to the “natural” increase is considered the
maximum acceptable. The Shire and the Town wish to reserve the right to apply differential rating as a
permanent option on the basis of either –
- Locality – to phase in equitability of rating (not necessarily equality of rate in $) as a result of the
merger, or
- Zoning – based on land use e.g. residential, commercial, industrial etc or developed, vacant etc
9.5
9.5.1
DISCOUNTS AND INCENTIVES
Shire of Narrogin
The Shire allows a 5% discount on rates paid in full by the due date, 35 days after issue.
In 2014-2015, the value of discount allowed is estimated to be approx. $38,500.
9.5.2
Town of Narrogin
The Town provides cash incentive prizes for rates paid in full by the due date, 35 days after issue. The
cash incentive prizes are selected at random.
In 2014-2015, the value of cash incentive prizes was $2,000.
9.5.3
New Entity
The Shire and Town have agreed that the discounts be discontinued, and that cash incentive prizes be
significantly increased, with the Shire to phase out the discount.
One of the benefits of cash incentive prizes is that the exact cost of the incentive is known at Budget time,
and is not dependent on the value of rates paid in the discount period.
No decision has been made at this time as to total value of prize pool, the number of prizes, the value of
individual prizes etc, however a schedule of attractive rates incentive prizes is intended to be adopted.
9.6
RATES INSTALMENTS
Shire and Town of Narrogin
9.6.1
Proposal for Boundary Change– draft v.10
– Page 55 –
Shire of Narrogin
The Shire offers the option of 4 instalments only.
9.6.2
Town of Narrogin
The Town offers the option of 4 instalments only.
9.6.3
New Entity
The Shire and Town have agreed that the option for 4 instalments only, be continued.
9.7
9.7.1
PENALTIES AND CHARGES
Shire and Town of Narrogin – Comparison
Comparison 2013-2014
Shire
Town
Penalty – interest rate
11%
11%
Applies after
3 months
35 days
Instalments – interest
5.0%
5.5%
Admin charge
$5.00
$9.00
-
The Shire’s extended period of 3 months before application of penalty interest has an historical basis in
the payment of grain harvest pool monies. No significant impact is expected as nearly 75% of Shire rates
are generally received by the due date.
9.7.2
New Entity
It has been agreed by the Shire and the Town that –
Comparison 2013-2014
Penalty – interest rate
11%
Applies after
35 days
Instalments – interest
5.5%
Admin charge
$9.00
-
9.8
New Entity
RATES – SUMMARY
Rates modelling indicates that the Shire rates are low, and this has been recognised in recent years by
the Council and is reinforced by the consultants preparing the Long Term Financial Plan and the Asset
Management Plan.
Factoring in the support already provided to the Town, the proposed net increases in GRV is similar to the
increase proposed for UV, bringing parity in the total increase to be applied to Shire assessments. Of
particular concern is the indication from Asset Management Planning that Shire rates need to double, just
to meet the calculated asset renewal gap, although this deficiency is not supported by the financial ratios.
Alignment of discounts/cash incentives will be necessary, and it is suggested that 2015-2016 Budget be
the platform to initiate phasing these in for both Shire and Town.
Rates and recycling charges are very similar, however, increases are suggested to provide for greater
reserves for regional waste management initiatives and local requirements to comply with legislation.
Rate instalment arrangements, charges and penalty interest, and timeframes are all quite close and will
result in little impact.
Shire and Town of Narrogin
Proposal for Boundary Change– draft v.10
– Page 56 –
Overall, rate increases will not be the result of merger, as the Shire has already identified that significant
increase are required to meet resident expectations and operational needs, and asset renewal
requirements.
Section 8.8 Annual Budget comments on the Rate Setting Statement estimates provided in Table 8.8.
Shire and Town of Narrogin
10
– Page 57 –
Proposal for Boundary Change– draft v.10
REFUSE AND RECYCLING SERVICES
10.1 COMPARISON SHIRES
In considering refuse collection matters, the current levels from adjoining shires was considered –
Comparison
2013-2014
Shire
Town
Cuballing
Wagin
Wickepin
Williams
Katanning
Refuse
$195
$200
None
$260
$154
$285
$329
Commercial
$305
Weekly
Weekly
Approx. No. of bins
200
2,640
Recycling
$80
Frequency
Frequency
$900
n/a
Weekly
Weekly
Weekly
Weekly
$76
(2014/15)
None
Included
Included
Included
Included
Fortnightly
Fortnightly
n/a
Fortnightly
Fortnightly
Fortnightly
Fortnightly
142
2,000
Approx. No. of bins
Waste levy
Cuballing –
Wickepin –
Katanning –
$30
No refuse service
Refuse – different charges for Domestic and Commercial collection
Refuse – option for 120 litre bin at $251
Refuse Commercial – charge of $900 on premises with their own waste arrangements
Recycling Domestic – included.
Recycling Commercial – first recycling bin $34, additional $77
Waste levy – charged on all assessments, regardless of number of bins or none
10.2 REFUSE AND RECYCLING
10.2.1 Shire of Narrogin
The Shire contracts out weekly refuse and fortnightly recycling collection. The bins are 240 litre capacity.
The Shire has a small refuse disposal site at Highbury which is no longer used, and therefore makes a
contribution to the Town for refuse disposal site maintenance. Highbury refuse site maintenance is
budgeted at $5,000 in 2014-2015.
The Shire is participating in a Regional Waste Disposal Strategy, part of which is the establishment of a
regional waste disposal site.
The Shire does have a significant under-recovery in waste management expenses.
10.2.2 Town of Narrogin
The Town contracts out weekly refuse collection. No kerbside recycling is done.
The Town maintains a large refuse disposal site on the edge of the urban area, with an annual
maintenance cost in the order of $250,000 for 2014/2015.
The Town is participating in a Regional Waste Disposal Strategy, part of which is the establishment of a
regional waste disposal site. The current site is close to residential areas on the north west side of
Narrogin. In recognition of this, the Town has been a participant in the regional waste management
initiatives being coordinated through the Shire of Wagin.
Recycling has been discussed by the Town on a number of occasions, but no final decision made to
implement the service as yet.
Shire and Town of Narrogin
Proposal for Boundary Change– draft v.10
– Page 58 –
The Town has about a 5% over-recovery of waste management expenses, which appears to be generally
being absorbed into general income, subsidising other expenditures.
10.2.3 New Entity
The domestic and commercial refuse collection charge is on a par between the Shire and the Town.
Consideration should be given to –
- Including full cost of all refuse related activity in the cost of the service. If the full cost is taken
into account the cost of the service is approx. $215 per year per collection. It needs to be borne
in mind that the site is used by those other than the residents in the urban area and by those
outside the Shire and Town
- Reserve Account accumulation for future regional waste initiative and site closure requirements
- Maintaining a separate charge for recycling as some premises, particularly businesses may
require multiple refuse bins, but only one recycling bin
- Charge on business premises disposing of their own waste
- Charge on all assessments for waste levy
- Charges for additional refuse or recycling bins
Decisions that will need to be made include –
- Refuse –
o equalise charge without phase in
o whether to incorporate the full cost of waste related activities, including contribution to
regional facilities into the charge
o phase in appropriate increase to cover the cost of all waste activities
- Recycling –
 the Town implemented recycling for 1 July 2014
o whether to have a separate charge or include it as part of a combined refuse and
recycling charge
- Contractor – align existing contracts, extension
The combined result of 18% over-recovery amounting to roughly $113,000 per year is a good outcome,
as the development of the regional site is likely to be expensive and require significant contributions from
participating Councils.
10.3 REFUSE AND RECYCLING – SUMMARY
Overall, refuse and recycling charges are adequate and both the Shire and Town are in a strong position
for cost recovery. Some monies are able to be set aside for future waste management, in particular
regional waste management initiative being coordinated by the Shire of Wagin.
However, with licencing costs for waste sites increasing and compliance requirement escalating,
consideration should be given to the planned and consistent growth of the Refuse Reserve Account, in
preparation for future requirements.
Shire and Town of Narrogin
11
Proposal for Boundary Change– draft v.10
– Page 59 –
INFRASTRUCTURE AND ASSETS
11.1 ASSET MANAGEMENT PLANNING
11.1.1 Shire of Narrogin
The Shire’s Asset Management Plan has been prepared in three documents –
- Roads Asset Management Plan
- Buildings and Structures Asset Management Plan
- Asset Management Strategy
It is essential to note that the documents are still in draft, and as the initial version of the Plan and
Strategy, there remains a long way before they are integrated into the financial system.
As examples of work to be done to clarify and integrate the AMP and financial system –
- The AMP quotes road assets as having a value of almost $94 million, whereas the financial
system records the value at approx. $30 million
- Due to the apparently very high value of assets in the AMP, the asset renewal calculations
indicate that the Shire is achieving only 76% of the asset renewal requirement
Therefore in order to close this gap as calculated by the AMP rates would be required to increase by 98%
just for this purpose. However, the accuracy of the AMP needs to be questioned as it is clearly
contradicted by the Asset Sustainability Ratio of 3.05 in Table 8.8. The Table also indicates a sizeable
increase in renewal expenditure by the Shire in recent years to address the asset renewal need.
The 2 asset management plans provide a quite detailed draft 10 year capitals works programs which are
useful.
11.1.2 Town of Narrogin
The Town’s Asset Management Plans have been prepared by the same consultant, for –
- Roads Asset Management Plan
- Buildings and Structures Asset Management Plan
- Asset Management Strategy
As with the Shire, these documents are also draft, and caution needs to be exercised when drawing
conclusions from them.
The Town appears to be in a much stronger asset maintenance position, with the assessed gap for roads
far less than the Shire’s but with a much smaller asset holding, and buildings and structures figures
indicating the Town’s expenditure is actually slightly greater than the requirements. Overall a rate rise of
just 0.4% to close the difference is needed.
The documents are in a draft, and are at a similar point in their preparation as the Shire’s. The concerns
regarding the work that needs to be done to clarify and integrate the AMP and financial records for the
Shire also apply.
As for the Shire, the 2 asset management plans include useful detailed drafts of the 10 year capital works
program.
11.1.3 New Entity
There is a major disconnect between the AMP and financial records that needs to be overcome, as well
as inconsistencies between the AMP and LTFP. The AMP for both Shire and Town are potentially more
mature than the LTFP which provides just a single page of summary information as the 10 years capital
works program.
It is strongly emphasised once again that –
- the current asset management planning is a first iteration
- it is not a fully aligned process integrated with financial system
- at the moment AMP and financial records operate separately rather than AMP being the
foundational data from which financial data is derived and reported
Shire and Town of Narrogin
-
Proposal for Boundary Change– draft v.10
– Page 60 –
despite being done by same the consultants, there will be differences between the two
These comparisons highlight the pressing need for the asset management plans and processes to be
properly integrated with the financial systems and then tested for validity and usefulness to the
organisation.
Despite these reservations, it appears from the draft AMPs that the Town is much further advanced in
their asset management, with minimal gap between requirement and funding. From the AMP figures,
there is evidence of a very large benefit to the Shire of merger – an immediate reduction of $1,184 per
assessment in exposure from an assessed renewal gap of $1,501 to $317 per assessment.
As a major influence on the Long Term Financial Plan, the potential inaccuracy of the AMP means that
the LTFP conclusions are also of limited validity, and this is exacerbated by the inadequacies of the
LTFP. Unless the AMP and LTFP are based on the same data, and use that data consistently, both
plans are of limited value, soaking up scarce resources for the sake of compliance.
The largest task, which is also the more important as so many other activities rely on its accuracy is the
establishment of robust asset management plans, systems and processes. It is suggested that unless
the following criteria can be met, the AMP needs to be considered inadequate –
- accurate and up to date data in ROMAN, for use by LGGC, RTR etc –
o both historical data, and
o condition data
- able to be updated by the organisation without having to employ external resources
- data is able to be extracted and manipulated by employees without employing external resources
for –
o planning
o budgeting
o reporting
o annual statements
- multiple data sources is not acceptable
- is comprehensively integrated with LTFP and budgeting processes
The current format and requirements of the plans are not conducive to meeting these targets, and without
substantial work, they will remain as a compliance activities rather than useful.
A number of firms and individual now specialise in local government asset management planning, so
expertise is readily available. Criteria for appointment of a consultant should include –
- comprehensive training for staff
- a software package and processes that do not require external assistance in order to use it
- the software and processes remain with the new entity and are fully accessible.
It is therefore recommended that, as a priority –
- a consultant/s be contracted to bring all road historical and condition data up to date
o refer comments in Section 7.7
- an asset management specialist be engaged to –
o fully integrate the Shire and Town’s AMPs and Strategies
o fully integrate the new entity’s AMP/Strategy with new entity’s LTFP
o single data sources to be used for –
 AMP
 LTFP
 Budget
 Annual reports
o develop processes that ensure staff are able to –
 access
 maintain the data
 extract data
 manipulate the data
It is further recommended that the new entity make provision for engagement of the consultant to review
progress and standards, perhaps 6 monthly initially, then less frequently as familiarity and competency
develops.
Shire and Town of Narrogin
– Page 61 –
Proposal for Boundary Change– draft v.10
11.2 INFRASTRUCTURE ASSETS – ROADS
11.2.1 Shire and Town of Narrogin
Tables 11.2 (a) to (c) highlight the discontinuity between the AMP and the financial data the annual
statements are based on –
Shire
Roads
Replacement (AMP) WDV (Annuals)
Town
AMP
Annuals
2012/2013
AMP
Annuals
2011/2012
93,932,282
27,524,458
22,318,114
18,473,340
WDV as % of Cost
82%
39%
The WDV as % of cost indicates the Shire’s road asset is comparatively newer than that of the Town.
There are no shared responsibility roads, although a number of roads continue from one into the other.
11.2.2 New Entity
As noted in Section 11.1, asset data and processes require urgent and detailed attention.
Work will be needed to merge the two listings of road assets held in ROMAN and used by MRWA. The
merging is simple for roads that are solely in one or the other, and only slightly more complicated where
the physical road is in both.
11.3 INFRASTRUCTURE ASSETS – BUILDINGS AND STRUCTURES
11.3.1 Shire and Town of Narrogin
Details of the various categories of building and structures are provided in Tables 11.2 (a) to (c), with the
values given as –
Shire
Buildings and Structures
Replacement (AMP) WDV (Annuals
Town
AMP
Annuals
2012/2013
AMP
Annuals
2011/2012
10,612,500
1,612,029
73,819,850
13,061,312
WDV as % of Cost
82%
47%
11.3.2 New Entity
There are two duplications of building assets –
Shire
Town
Administration Centre
Federal Street
Two storey, upper not accessible for disabled
Extensions not possible
2 portions privately leased
Crown Grant
Earl Street
Single storey, full disabled access throughout
Multiple options for extensions
Full occupancy by Town
Crown Grant
Works Depot
Lydeker Way, industrial area
Purpose built
Appropriate facilities, access, security
Sufficient scope for expansion
Freehold
Fairway Street, town centre
Former railway goods shed
Inadequate facilities, access, security
Limited scope for expansion
Railway lease
All other building and structure assets are specific purpose and no duplications exist.
Shire and Town of Narrogin
Proposal for Boundary Change– draft v.10
– Page 62 –
11.4 ADMINISTRATION CENTRES
11.4.1 Shire of Narrogin
The Shire’s administration centre is a two story building on Federal St (Great Southern Highway) in the
centre of Narrogin. Portions of the building not required for Shire use are privately leased.
The Council Chambers, compact kitchen and toilet are on the upper level and can only be accessed by
stairs. Without disabled access, the building is not suitable for general public access except to the
ground floor (but without toilet facilities).
The CEOs office is on the ground floor, access directly from the public foyer. All other office staff work in
an open plan space behind the counter, and in relatively cramped circumstances.
Staff car park shares an area with an adjacent service station, and is very limited. Visitors frequently
need to park a short distance away, as competition for street parking is generally high.
11.4.2 Town of Narrogin
The Town’s administration centre is located adjacent to the Library on the outskirts of the main business
area of the town, with adequate parking immediately adjacent to the front of the building or a car park to
the side. Access by staff and visitors is generally without difficulty.
The building is all ground floor and disabled access exists throughout the building, but the foyer area can
be very cramped in busy times.
Conditions for existing staff are cramped in the general office area, with multiple occupants of offices and
equipment and cabinets having to be placed in hallways. Kitchen facilities are good, but toilets need
relocation from the middle of the building. The building can be refurbished and space created for staff,
and the additional staff to be accommodated as the result of a merger, but only by displacing the Council
Chambers and reconfiguring these as offices. Tis in turn, requires that new Council Chambers are
constructed.
11.4.3 New Entity
There is the possibility of using the Shire offices for some administrative purposes, but the Town’s
Administrative Centre is the obvious choice for a common office complex. An architect has been
engaged to develop some concepts for the building to be refurbished and reconfigured, as well as
suggest options for necessary extensions.
As the cost of administration centre changes is largely the direct result of expansion caused by the
proposed merger through boundary change, the Shire and Town consider that the State should contribute
substantially to the cost of design, fit-out and the extensions, as was provided to the City of Greater
Geraldton.
The cost of office design, extension and fit out is estimated at approx $520,000.
11.5 WORKS DEPOTS
11.5.1 Shire of Narrogin
The Shire has a purpose built works depot on Lydeker Way in the industrial area, with a range of
workshops with several offices for supervisors and depot clerk, sheds, and undercover shelters.
There is sufficient space to expand to accommodate an merged works crew, although some minor
extensions may be required to lunchroom facilities, an additional works manager’s office, undercover
shelters. A dedicated secure chemical store is also required
11.5.2 Town of Narrogin
In recent years the Town has been using an old railway goods shed, situated on railway reserve in
Fairway Street near the town centre.
Shire and Town of Narrogin
Proposal for Boundary Change– draft v.10
– Page 63 –
Location, facilities and access are far from ideal, and closure of this site in favour of the works depot on
Lydeker Way should be a priority.
11.5.3 New Entity
The cost to expand the facilities at the Lydeker Way works depot is estimated at $250,000 to close and
resolve any environmental matters at the Fairway Street site, and for the design, construct and fit out at
Lydeker Way.
To offset this cost, a commitment will be sought from the State to freehold the current site of the Town
works depot from the railway reserve, as has been done for other properties on Fairway and Federal
Streets.
The acquired property would then be leased or sold, subject to any environmental requirements still
applying, to recover a portion of the cost of depot relocation.
11.6 PLANT AND FLEET
11.6.1 Shire and Town of Narrogin
Comparison of the plant and vehicle lists shows that each is geared for their main focus of activity. There
is little duplication of plant so significant once off income and savings in on-going operational costs is
unlikely.
The biggest single area of change would be if the Town / new entity divested Home Care services to a
local organisation. As all capital and on-going costs are met by the program, divestment would free up
some of the Director’s time, but have no net economic impact.
11.6.2 New Entity
Very limited rationalisation of plant is expected as comparison of the fleets show that each is geared
mainly for the primary focus – roads for the Shire and parks and gardens for the Town – with little
overlap.
Any gaps in plant held required for works is usually readily accessible on short notice either local hirers or
contractors, or from Perth
Plant items that may be considered for rationalisation once merger is effective include –
- 1 of the two tractors
- Use of backhoe/loaders to be reviewed
- Library vehicle currently under review
11.7 INFRASTRUCTURE AND ASSETS – SUMMARY
In relation to the economic aspects of road management, there is little advantage to either Shire or Town
in merger. However, there would be benefit in having a single coordinated workforce, with expanded
opportunities for career direction for staff, and specialist skills.
There is a possibility of significant economic advantage by updating the road data held by ROMAN,
through increased FAGs and RTR grants, but this should be pursued irrespective of merger proceeding
or not
A major disincentive is the inherent penalty applied to Councils considering merger by the reduction in
eligibility under the Regional Roads Group funding formula.
There would appear to be a very large advantage to Shire residents through merger with an immediate
reduction of $1,184 in asset renewal gap per assessment, through spreading the exposure across a
much larger rate base. Conversely, the Town residents are detrimentally affected by this, with their asset
renewal exposure increasing from $6 per assessment to a gap of $317 per assessment.
Shire and Town of Narrogin
Proposal for Boundary Change– draft v.10
– Page 64 –
The Town’s works staff would gain a very significant benefit through relocation of the depot from
makeshift arrangements to a purpose built facility.
Some rationalisation of plant and vehicles may be justified, but generally, there is little duplication or
excess.
Both Shire and Town would have major benefit if asset management plans and processes were aligned
with Long Term Financial Plan and financial records, with the process access to trained and capable
staff, in a single regime.
Overall, the assessment is that there are major benefits to be gained to residents, the community and
workforce through merger that more than offset the negatives.
Shire and Town of Narrogin
12
Proposal for Boundary Change– draft v.10
– Page 65 –
MERGER METHOD
The assistance of Mr Chris Liversage, Principal Consultant Conway Highbury, is acknowledged for this
part.
12.1 LEGISLATION
Instead of formal amalgamation, the option for boundary change is available under the Act.
The Local Government Act and Regulations provides for two methods of merger –
- Amalgamation – the current entities are dissolved, and a new entity is created
- Boundary change – the external boundary of one area is extended to encompass a portion or all
of an adjoining local government.
There is no requirement to use the amalgamation option if it is the whole of the local government areas
being merged, nor do the requirements for a boundary change prohibit the whole of a local government
being incorporated.
The Act itself is silent on boundary change, but the Local Government (Constitution) Regulations 1996
clearly permit a boundary change to encompass the whole of a district:
6.
Abolishing a district: Consequences
(4) If on commencement the whole of the area of district A is included in the area of one other
district (“district B”), whether by means of a boundary change to an existing district or by
means of a declaration of a new district ….
The relative effect of an amalgamation versus a boundary change are summarised below.
12.2 FORMAL AMALGAMATION
In general, the issues associated with formal amalgamation (ie both the Shire the Town are abolished
and replaced with a new entity) are summarised below –
Issue
Requirement
Effect
Completely new entity
Absorbs all assets, staff
contractual obligations,
debts of 2 existing entities
Must combine and accept good or bad
Needs total and costly establishment of all systems
ABN
New ABN
-
-
Can’t be obtained until Governor’s Order issued
New entity with no history
Without ABN cannot –
o Sign agreements
o Create bank accounts,
o Can’t issue receipts or invoices
Potentially, a very significant hurdle
Legal agreements –
- Contracts
- Leases
Need to review all
agreements for each
Council
-
Employment -- general
Guaranteed 2 years
Subject to continued performance
May be deployed to alternative suitable position
Organisational structure to be finalised by new CEO
Greater perception of equal competition for positions
Employment – Contracts
Redundancies limited to
12 months payout
(legislation in progress)
All senior staff positions subject to review
-
Some have no provision for assignment despite Act
provisions relating to new entity
Some may have cessation provisions or implications
(employment)
Shire and Town of Narrogin
Proposal for Boundary Change– draft v.10
Representation
Legal status
– Page 66 –
Initially, Commissioners will be required
Full spill of elected members
Wards and representation have to be reviewed
Interruptions to continuity
Likelihood of gaps eg: between dissolution and Commissioners
taking office
Practical considerations
Separation from “old” way of doing things
Clear establishment of new identity
Not a takeover of one by the other
Re-branding, signage, entry statements
Major communication/marketing strategy
Decision-making
Can’t make decisions early for new entity until Commissioner/s
appointed and have taken office
Name change
New name highly likely
Poll of residents
May be requested
Outcome is binding
Elected Members
All offices declared vacant
Commissioners appointed as from an agreed date and as
published in the Governor’s Orders
CEO
All positions become
vacant
Acting CEO appointed (sourced internally or externally) until
appointment is made by new entity
12.3 BOUNDARY CHANGE
The effect of a boundary change (ie the boundaries are extended to include the other) are summarised
below –
Issue
Requirement
Effect
ABN
ABN continues
Continuing local authority, although enlarged, so business as usual
No interruption/upheaval of change
All matters requiring an ABN can be addressed as needed
Legal agreements –
- Contracts
- Leases
Only those for area being
incorporated need to be
reviewed
Reduced number of documents to be reviewed
Negotiate transfer from absorbed entity
Employment -general
No change
Subject to continued performance
May be deployed to alternative suitable position
“Continuing” employees may be seen to have an advantage unless
agreed to accommodate staff from other?
Likely strong perception of junior partner that they are disadvantaged
unless placement agreed
Less redundancy likely
Employment –
Contracts
Senior staff in one continue as contract unaffected
Senior staff in other to be absorbed or redundant
Representation
Commissioners not required
Full spill may not be required
Wards and representation need to be reviewed as provision for additional
electors needs to be made
Legal status
Full continuity
No gaps eg: no dissolution of old, just expansion of responsibility
Practical
considerations
No separation, usual practices continue
Identity to be expanded to incorporate new areas
Corporate identity / new branding not required
Decision-making
Continues without gap, including for new area.
Name change
Optional, dependant on brand, at the discretion of the new expanded
authority
Poll of residents
No poll provision
Residents can object but no poll provision, so is non-binding
Shire and Town of Narrogin
Proposal for Boundary Change– draft v.10
Elected Members
Those of continuing
Council remain in office
No representation of area affected by boundary change
CEO
CEO of continuing
Council remains in office
One CEO made redundant
– Page 67 –
Two particular issues of boundary change will need to be considered –
1) Elected members – those of the continuing entity remain in office. The Minister cannot remove them
unless for a reason provided by the Act, that is misconduct or if more than 50% of the positions are
vacant. As there is no misconduct, the only option for putting Commissioners in place is for
“continuing” elected members to resign as at an agreed date.
To trigger the remaining elected member positions being declared vacant and installation of
Commissioners –
- As the Shire has 7 elected members, 4 would have to resign
- The Town has 9 elected members, but as one seat is vacant, 4 additional elected
members would have to resign.
This matter is addressed in Sections 4.3.3 and 4.6.
2) CEO – the CEO of the continuing entity retains their position, unless a resignation or termination
takes effect. In a situation where a minor part of one local authority is transferred to another, the
continuing in position is immaterial, however, where the whole of one local authority is discontinued
and is incorporated into another, the effect could be quite inequitable.
Subject to clarification of legal and industrial law matters, it would appear that there several basic
options –
i) On the basis of preferred continuing CEO, determine which of the Shire or the Town is to be the
continuing Council, the other CEO then offered a contract as a Director or made redundant, or
ii) Both CEOs resign or made redundant as at an agreed date, either entering the open market as
free agents, or offered contracts as Directors for the new entity, and making application for the
Acting of permanent CEO position from this level.
This matter is addressed in Section 5.5.3.
12.4 MERGER METHOD – SUMMARY
A summary of implications of formal amalgamation versus boundary change was received from DLGC,
and discusses many of the matters listed above in greater detail.
In considering boundary change versus amalgamation, there is a clear difference between merging
relatively equal sized authorities, and bringing together two entities where there is considerable difference
in size, sophistication of systems, experience of staff, scale of contracts and imbalance in many of the
matters being merged – financial position, loans, assets, IT systems, local laws, workplace agreements,
offices and depots etc.
There is unlikely to be any real reduction in workload or cost, but there is one significant benefit for each
option –
- Amalgamation – the benefit is the option is seen to be a ‘clean’ start, especially for employees of
the smaller entity who can see less of a takeover, and more that there is equal opportunity. While
there is history and obligations to meet, the chance for a new beginning is also the option to
emphasis new responsibilities etc, and force a reset of thinking
- Boundary change – there is an enormous advantage in a business sense in being able to legally
act at any time, particularly in relation to employee matters, without having to wait until a formal
commencement date.
The end result may be the same, but the mechanics of how to get there are quite different.
The Shire and the Town have agreed that merger through Local Government Act section 2.1 (1)(c) (i.e.
boundary change) is the preferred option.
Shire and Town of Narrogin
Proposal for Boundary Change– draft v.10
– Page 68 –
The following matters are considered by the Shire and the Town to be linked and agreement is
conditional upon acceptance of them as a bloc –
4.1.2 – Name change being implemented within 6 months of the boundary change
4.3.3 – All elected members of both Shire and Town resigning on or prior to 15 May 2015
4.6 – Commissioners – independent Chair, 2 members on nomination from each of Shire and
Town to take office on vacation by the elected members
4.6 – Commissioners to make determination of Acting CEO to hold office from 1 Jul 2015, for up to
12 months
5.5.3 – CEOs to resign effective 30 June 2015, in order to take up a Directorship of the new entity,
without loss of benefit or entitlements, and both eligible for consideration as Acting CEO or
for appointment as the permanent CEO
5.5.3 – The Shire and Town recommend to the Commissioners that the Acting CEO be either of
the former CEOs
5.5.3 – Process for the recruitment of the permanent CEO to be initiated by the new Council
elected in October 2015
12.4 – Merger through boundary change with the Town as the continuing entity
Shire and Town of Narrogin
13
Proposal for Boundary Change– draft v.10
– Page 69 –
TRANSITION
13.1 TRANSITION PLAN AND BUDGET
The estimated timeframe, merger partner contributions and costs associated with the proposed merger
through boundary change are outlined in –
- Table 12.1 (a) – Transition Plan and Budget
- Table 12.1 (b) – Transition Budget – Agency
- Table 12.1 (c) – Costs & Savings – Modelling Detail
The proposed budget from the State totals $1.212 million; however, final requested funding allocation was
approximately $1.6 Million.
Both Councils have agreed to progress with the States funding allocation and to apply for other additional
grants and place political pressure on the Ministers for infrastructure projects that include the
Administration Centre Expansion, Establishment of a Records Store, Additional Shed Space at the
Lydecker Depot and the Administration Centre alterations.
A number of potential costs were identified, such as staff housing, but as these are not associated with
merger, estimates are not included.
While several small on-going cost savings were identified, these are offset by expected increase in staff
costs arising from equalisation of employee benefit packages and some increase due to greater
responsibilities.
The Transition Plan suggests commencing work in the 2014-2015 year on a number of relatively minor
and inexpensive matters. The bulk of work and expenditure is anticipated to be in the six months prior to
effective merger date.
With a decision from the Board and Minister, and possibility of a poll of electors, the timeframe will soon
disappear.
13.2 PRE-MERGER ALIGNMENTS
A wide range of matters has been identified in Table 12.2 for work to commence on alignment prior to
merger, with a number of early tasks requiring little expenditure, or else able to be undertaken in-house.
Some of the identified tasks either are required to be done or ought to be done regardless of whether or
not merger proceeds, such as the asset management work and road condition surveys, local laws review
etc.
A number of matters can be aligned in full or in part in the process of adoption of the 2014-2015 Budgets,
such as elected members payments, private works rates, fees and charges, refuse and recycling
charges, commence GRV and UV rating phase in etc.
Other matters would be advantageous to align, are joint authorised fire control officers, contract for some
suppliers and activities like ISP, hardware support, legal advice and so on.
13.3 PRE-MERGER ARRANGEMENTS
There are critical actions that affect the timing of the whole project, and until all are resolved, any
expenditure and effort that is directly solely towards merger is potentially in vain –
1. Submission by the Shire and Town to the LGAB
2. Timeliness of LGAB processes and recommendation to the Minister
3. Timeliness of Minister’s decision
4. Poll of residents, if applicable –
o If poll prevents amalgamation, all work stops
o If no poll or poll does not prevent amalgamation, all work not requiring a formal
processes can commence
Shire and Town of Narrogin
Proposal for Boundary Change– draft v.10
– Page 70 –
o
If not prevented, appointment of project manager, consultants etc can be made to
commence the work of merger
5. Issue of Governors Orders –
o Without the Governor’s orders establishing the new identity, an ABN cannot be obtained,
bank account cannot be activated etc
Without the successful completion of these steps, the process of merger is at a standstill.
On appointment of a Project Manager, some initial tasks that should be addressed include –
i)
Development of a Memorandum of Agreement between the Shire and the Town on matters that
they wish to have carried forward by the new entity. Such matters could cover –
- Workforce issues – principles, continuity of employment, negotiation for transfer of
position or alternative role, no reduction in total benefit package even if composition
changes etc
- Quarantining of specific Reserves
- Processes for pre-merger alignments and targets
- Plant and fleet rationalisation
- Accounting software
- Recommendations to new entity’s Commissioners or Council
ii)
Develop Project administrative plans –
- Oversight of Project – Joint Project Board (elected members) and Implementation
Committee (executive staff)
- Change Management Plan
- Employee and Community Engagement Plans
iii) Pre-merger joint consultancies – initially, determine which tasks to outsource –
- Asset management consultant – road condition survey, AM plans & processes
- HR consultant for workforce development and integration
- IT Project Manager –IT requirements coordination, liaise with accounting software,
internet providers, web presence, emails etc
- Admin Centre – design etc
- Depot extensions – design etc
- Local laws
- Corporate branding
iv) Liaison with accounting software providers
v)
Australian Business Number and associated taxation matters
vi) Banking
13.4 MERGER INCENTIVES
13.4.1 Reserves and Crown Grants
Not all land utilised by the Shire and the Town is owned by them freehold, since –
- Reserves remain the property of the Crown and the local government only has the right to use it
for determined purposes for a stipulated period, and
- Crown Grants are freehold, but may be conditional
The following lands have previously been requested to be converted to unconditional freehold and agreed
by the State Government –
a) Shire
o Lot 36, 43 Federal Street, Narrogin – in addition to being the current Shire Offices,
portions are also leased to a café and as offices
b) Town –
o Lot 206, corner Havelock St and Homer St – for residential purposes
o Lot 46 and Part Lot 264 Earl Street – current Town Administration Centre
13.4.2 Administration Centre – extensions
As a result of the proposed merger, it will be necessary to refurbish and extend the Administration Centre
to provide for –
- Remodelling of existing Chambers to form office space
- Construct new Council Chambers
Shire and Town of Narrogin
-
Proposal for Boundary Change– draft v.10
– Page 71 –
Extend for new offices, and
Relocate and enlarge internal toilet facilities
As City of Greater Geraldton was provided with some funding to extend and refurbish, the Shire and
Town believe that it is equitable that similar consideration be given in this instance.
13.4.3 Other Merger Incentives
In order to assist with the development of the community and smooth merger several additions to the
assistance package are requested –
a) Government assistance to establish Narrogin Regional Hospital as a regional health training
campus similar to the Combined Universities Centre for Rural Health in Geraldton.
b) Interest free loans for expenses directly related to merger, such as –
- Depot relocation
c) Convert to freehold any lands vested in, under management order or identified the Shire of Town,
as having potential future value either for use by the new entity or for lease or sale to defray
merger costs, such as –
- Reserve 10317, Fairway Street – Railway lease, current Town depot site
- Reserve 27470, Felspar Street
- Reserve 24751, Furnival Street
- Reserve 19425 Street
d) Joint Local Planning Scheme No.3 to be given priority by Dept of Planning with publication in the
Government Gazette prior to 1 July 2015.
e) Commitment to funding complying applications made to Wheatbelt South Regional Roads Group
that are declined due to reduced eligibility of the new entity, as assessed by the Regional
Manager MRWA Wheatbelt South.
f)
Funding assistance for an initial 3 year period for a Community Emergency Management Officer
to integrate all Shire and Town Emergency Management Planning, and carry out risk assessment
of all properties and lands under the control of the new entity.
13.5 TRANSITION SUMMARY
The transition timeframe and costs are based on best estimates of costs and time requirements for
critical tasks as advised by preferred supplier, external professional estimates, finance specialists and
existing staff, and is particularly driven by the constraints of IT.
Much can be done in the interim in preparation for merger, so that there is a series of decisions able to be
made by the new entity at their first official meeting. This will both ease the transition as much common
ground will have been reached prior to the merger date, as well as ensure prompt implementation of new
processes and directions
There is no doubt that any merger is an expensive project, and a judgment call by the Shire and the Town
is necessary as to the long term value.
The long term value of merger can be impacted –
- negatively – through reduction in grants, either actual or eligibility
- positively – through incentives costing the State little or nothing, but resulting in a potentially
significant outcome for the new entity and the community at large
Shire and Town of Narrogin
14
– Page 72 –
Proposal for Boundary Change– draft v.10
SWOT OVERVIEW
14.1 REMAINING SEPARATE
Shire
Town
New Entity
Strength
Focus on rural area
Retains individuality
Focus on urban area
Weakness
Social, political reduced voice
Low rates reduces opportunities
Integration of programs, works
etc
Integration of programs, works
etc
Constrained influence as a
regional centre
Opportunity
Continued level of RRG funding
Continued level of RRG funding
State assistance for merger
Threat
Asset management planning
Rates increases
Compliance requirements
Future compulsory reform
Works depot inadequacies
Reduced assistance, options for
future reform efforts
14.2 MERGER THROUGH BOUNDARY CHANGE
Shire
Town
New Entity
Strength
Reduced responsibility spread for
staff at multiple levels
Weakness
Reduced voice in Council
Reduced voice in Council,
especially 2015-2019
Potential to focus on population
distribution
Opportunity
Asset management planning integration of AMP and LTFP
Significantly reduction of asset
renewal gap
Staff benefit package equality
Staff career / development choice
Works staff improved facilities
Improved coordination of works &
services
Improved compliance
Improved statutory planning
Improved business planning –
SCP, WFP, AMP, LTFP, CBP
Reserve lands converted to
freehold
Merger funding assistance
Increased asset renewal gap
Loss of FAGs after phase in
Reduced RRG funding eligibility
Threat
Social, political cohesion
Single voice for combined
community
Staff opportunities – choices,
career development
Integrated statutory planning,
strategies and policies
Integrated local laws operation
Greater influence as a regional
centre
Shire and Town of Narrogin
15
Proposal for Boundary Change– draft v.10
– Page 73 –
RECOMMENDATIONS
15.1 TO SHIRE AND TOWN
15.1.1 Shire of Narrogin
In preparation for merger through boundary change, it is recommended that –
a) Rate discounts and penalty arrangement be reviewed, aligned with the Town and pro-rata, with
likely provisions for the new entity
b) Rate increases for GRV, UV minimums implemented for 2015-2016 as Year 1 of 10 year phase
in as per Report model
Should merger not proceed, it is nevertheless recommended that –
c) The contribution to be made to the Town continue to be regularly reviewed.
d) Rate increases for GRV, UV minimums implemented for 2015-2016 as Year 1 of 10 year phase
in for parity with Town (GRV) and Wagin (UV)
15.1.2 Town of Narrogin
In preparation for merger through boundary change, it is recommended that –
a) Rate incentive prizes be reviewed and aligned pro-rata with likely provisions for the new entity
b) Detailed review of operating costs, particularly in the Community and Recreation services areas.
c) Identify “lazy” assets or programs, i.e. those that are under-utilised and can be disposed of,
suspended or terminated without significant impact on amenity of the community as a whole, but
may result in significant economic benefit.
Should merger through boundary change not proceed, it is nevertheless recommended that –
d) Detailed review of operating costs, as noted.
e) Identify “lazy” assets or programs, as noted.
15.1.3 Jointly
In preparation for merger through boundary change, it is recommended that –
a) Table 13.2 Pre-merger alignments be reviewed and matters identified then initiated as able.
b) Commitments from the State Government sought for –
- Funding of merger costs
- Incentives as outline in Section 13.4
c) Workforce accommodation requirements for Administration Centre identified
d) Workforce and plant accommodation requirements for depot relocation identified
e) An asset management specialist be engaged –
- to develop and integrate asset management processes and principles into main financial
records
- roads condition survey
f) Fully integrate all emergency services obligations, including –
seeking funding from Dept of Fire and Emergency Services for joint employment of a
Community Emergency Management Officer
alignment of local laws and authorised officer appointments
g) Continue to lobby strongly to redress the inequity of the Regional Road Group funding formula
adopted in July 2014.
Should merger through boundary change not proceed, it is nevertheless recommended that –
h) Statutory planning cooperation continue as a priority
i) Joint appointment of an asset management specialist, as noted.
j) Integration of emergency management matters, as noted.
k) Joint appointments for –
Consultants to assist with integrated planning
Grants officer
Governance/organisational co-ordination officer targeting activities required of both or being
delivered by both, with the aim of single or co-ordinated delivery
Shire and Town of Narrogin
Proposal for Boundary Change– draft v.10
– Page 74 –
15.2 FOR GOVERNOR’S ORDERS
Matters to be included in the Governor’s Orders –
1. Name of the new entity to be “Shire of Narrogin”.
2. Merger through boundary change occur under the provisions of the Local Government Act 1995 s2.1
(1)(c) relating to boundary change, with the Town as the continuing organisation and the current
Shire being subsumed.
3. Merger through boundary change preferred effective date to be 1 July 2015.
While this is the preferred date for the merger, as it will complement the State-wide Local
Government Elections in October 2015, the actual date will depend on the preparedness to meet this
timeline.
4. During the period between vacation of office by the elected members of the former Councils until
elections, that five Commissioners be appointed being –
- An Independent Chairperson appointed by the Minister
- 2 Commissioners by the Minister on the nomination of the Shire
- 2 Commissioners by the Minister on the nomination of the Town
5. Inaugural election of the new entity to be held in October following merger through Boundary change.
6. The number of elected members from inaugural election to the 2017 ordinary election to be 8.
7. Wards to be established with the following names, areas and representation from inaugural election
until immediately prior to the ordinary election in October 2017.
- Rural Ward – being the whole of the area of the previous Shire of Narrogin
- Urban Ward – being the whole of the area of the previous Town of Narrogin
- Each ward to have 4 elected members
- 2 elected members of each Ward to retire at the October 2017 ordinary elections
8. Effective as of the 2017 ordinary election –
- Wards are discontinued
- Number of offices of elected member increased to 9.
9. Shire President to be elected from and by the elected members.
10. Excluding rate increases applying to all assessments, parity rate increases to be phased in over 10
years.
11. Reserves to be quarantined without access to change or use as otherwise permitted by the Local
Government Act, due to conditions of grant to the original local government, are –
Community Assisted Transport Vehicle Reserve
J Hogg Memorial Reserve
Aged Care Development Reserve
Unspent Grants Reserve
Road Construction Reserve – to be renamed Grain Freight Routes Reserve
12. The new entity is not required to prepare a plan under section 5.56 of the Act in the financial year
ending on 30 June of the year of merger through boundary change.
13. During the period beginning on commencement day and ending on 30 June of the financial year
commencing 10 years after the date of merger through boundary change, section 6.33 of the Act is
modified to the extent necessary to allow the new entity to impose differential general rates
according to whether –
a) the land is in the area of the State that, immediately before commencement day, was the
district of Shire of Narrogin; or
b) the land is in the area of the State that, immediately before commencement day, was the
district of the Town of Narrogin.
Shire and Town of Narrogin
Proposal for Boundary Change– draft v.10
– Page 75 –
14. The principles to apply to rates increases for a period of 10 years from the time of merger through
boundary change are –
a) GRV rate in the $ is to be increased to parity with the Town/Urban Ward.
b) UV rate in the $ is to be increased from today’s rate in the $ to the current (2014) Wagin rate
in the $.
c) All minimums are to be raised to equality with the Town/Urban Ward minimum rate.
d) The Rural Town site of Highbury GRV minimum is to be calculated at 75% of the normal
minimum rate, subject to there being no reduction in minimum rate.
15. The new entity is not required to comply with section 6.36 of the Act in relation to any –
a) differential general rates; or
b) minimum payment applying to a differential rate category under section 6.35(6)(c) of the Act,
imposed in respect of the financial year ending on 30 June 2016.
Shire and Town of Narrogin
16
Proposal for Boundary Change– draft v.10
ENDORSEMENT
Signed with the authority of the Councils of –
_______________________
Cr Richard Chadwick
President
_______________________
Mayor Leigh Ballard
_______________________
Mr Geoff McKeown
Chief Executive Officer
_______________________
Mr Aaron Cook
Chief Executive Officer
– Page 76 –
Shire and Town of Narrogin Proposal for
Boundary Change/Merger Documentation
Notice to Reader
The preparation of this version of the Proposal for Boundary Change Document (dated October
2014) has been based on an earlier version (dated January 2014). The purpose of the revision
is to provide an update for the community and ultimately the Local Government Advisory
Board if the Shire and Town Councils chose to proceed. Every effort has been made to
incorporate the changes necessary to make the document relevant, (errors & omissions
accepted). Please note that the revision has not incorporated the working tables that appear
as an addendum to this report and the tables are provided for general information only (all
figures remain as per the January 2014 version of the Report).
Spreadsheets and Tables - Attachments
INDEX TO TABLES AND CALCULATIONS
Report Section
3.1 (a)
3.1 (b)
4.3
4.4
5.2
5.7
6.5
8.2
8.3.3
8.5
8.6
8.7
8.8
8.9
9.1
9.A
9.B
9.C
9.D
9.E
10.1
10.2
11.2 (a)
11.2 (b)
11.2 (c)
11.6
13.1 (a)
13.1 (b)
13.1 (c)
13.2
Table
Selected statistics
Population Estimates
Representation
Elected Members - Payments
Workforce
Future Organisational structure - Options
Service Provision
Financial Assistance Grants - Projected
Regional Road Group - Project Funds
Reserve Accounts
Fees and Charges - Categories
Annual Budget - Rate Setting Statement
Financial Ratios
Rates Comparison - Adjoining Shires
Rates Comparison - Shire & Town
Parity Factor - Principles
Parity Factor - Calculation
Phasing in of Rates - UV, GRV, minimums
Rates modelling - 2013-2014 to 2019-2020
Refuse & Recycling - Adjoining Shires
Refuse & Recycling Comparison - Shire & Town
Assets and Depreciation by Category - Annual Statements
Infrastructure Assets - Asset Management Plans
Infrastructure Assets - Renewal Funding / Gap
Plant and Vehicle fleet
Transition Plan and Budget
Transition Budget - Agency
Costs & Savings - Modelling Detail
Pre-Merger Alignments
Not included Rates - Modelling Detail
IMPORTANT Town of Narrogin 2012-2013 actuals are from the 2014-2015 Statements
prior to being audited, and some chnges may result.
3.1 (a)
Selected statistics
Shire
Town
Total
Source
Population - ABS 2011 Census
Population - ATSI
ATSI % of total
Socio-Economic Index For Area
SEIFA - WA ranking
Dwellings - Occupied & Empty
Residents per Occupied dwelling
Total in Workforce
Unemployment rate
Median weekly household income
Median monthly mortgage repayments
Median weekly rent
875
14
1.6%
1,057
124
365
2.7
460
2.0%
1,309
1,001
100
4,219
394
9.3%
932
22
1,949
2.4
1,885
6.8%
955
1,300
160
5,094 ABS 2011 Census
408
8.0%
Higher is better
From the lowest ranked
2,314
Elected members **
Number of Electors
Population per Elected Member
Electors per Elected Member
Area (sq kms)
Sealed road length (km)
Unsealed road length (km)
7
637
125
91
1,618
181
558
8
2,633
527
329
13
62
13
15 WALGA Local Govt Directory 2013
3,270
340
218
1,631
243
571
17
5
-
31
11
35
48 Workforce Planning consultant
16
35
18
56
74 Annual Statements
553
2,105
4
3
Employees - full time
Employees - Part time
Employees - casual
Employees - FTE at 30 June 2013
Number of rate assessments issued
Salaries and Allowances Trubunal
Band - for Elected Member and CEO
2,345
5.8%
2,658 Rate Records
** Notes 1. Town resolved in October 2013 to request reduction in number of Councillors from 8 to 7.
Approved by Minister November 2013. Mayor remains elected at large.
3.1 (b)
Population Estimates
Shire
Town
Comment
5,541 ABS estimates
5,544
5,550
5,403
5,363
5,321
5,287
5,281
5,282
5,246
5,260
5,094 ABS 2011 Census
Total
Population - 2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
773
804
825
821
843
852
874
903
917
893
900
4,768
4,740
4,725
4,582
4,520
4,469
4,413
4,378
4,365
4,353
4,360
Population - ABS 2011 Census
% of total
875
17.2%
4,219
82.8%
2012
910
4,454
5,364
WAPC Estimate Band B - 2011
WAPC Estimate Band C - 2011
810
1,000
4,700
4,800
5,510 WAPC - WA Tomorrow (2012)
5,800
Adjusted Forecast - 2013
886
4,309
2014
2015
2016
2017
2018
2019
2020
2021
886
897
907
907
918
929
940
951
4,309
4,399
4,488
4,488
4,578
4,578
4,668
4,668
% of total
16.9%
83.1%
5,195 Comparing ABS Census 2011
5,195 to WAPC WA Tomorrow
5,296 Band B estimates
5,395
5,395
5,496
5,507
5,608
5,619
Growth - 2011 Census to 2020 Forecast
7.4%
10.6%
10.1%
Annual growth rate - Projected
0.8%
1.2%
1.1%
End of 5 year LGGC phase in period
4.3
Current
Elected Members
Mayor
Councillors **
Wards
Estimated population 2013
Ratio - Population to Crs
Number of Electors 2013
Ratio - Electors to Crs
Electors - % of Estimated Population
Variance - Electors/Cr to combined Total
2013 Local Government Elections Mayoral vacancy
Mayoral candidates
Councillor vacancies
Councillor candidates
Election response
Est. no. of electors
Representation
Shire
Town
-
Total
1
7
None
4,309
539
2,633
329
61.1%
66.2%
7
None
886
127
637
91
71.9%
239.6%
n/a
n/a
3
3
no election
n/a
Comment
1
14
Term to
2015
2017
Total
Shire
3
4
7
Town
5
3
8
5,195
346 Includes Mayor
3,270 WALGA Local Government Directory 2013
218 Includes Mayor
62.9%
1
2
4
7
32.0%
843
** Oct 2013 - Town asked Minister to reduce from 8 to 7 Crs + Mayor
Agreed position - To October 2017
- 8 member Council
- 4 in Rural Ward and 4 in Urban Ward
- From October 2017
- 9 member Council
- no wards
Rural
to April/May 2015 (date to be confirmed)
Estimated electors 2015
Estimated population 2015
Elected members **
Change from previous Council
Commissioners
Independent Chair
Commissioners
Deputy Commissioners
October 2015 to October 2017
Estimated electors 2015
Estimated population 2015
Elected members
Change from previous Council
Ratio - Electors to Crs
Variance - Electors/Cr to combined Total
Variance - Crs of Total Crs
from October 2017 - No Wards
Estimated electors 2017
Estimated population 2017
Elected members
Change from previous Council
Ratio - Electors to Crs
Variance - Electors/Cr to combined Total
Variance - Crs of Total Crs
- President
- Elected by Council
Urban
645
897
7
0
2
1
645
897
4
-3
161
258%
2.45
New Entity
2,688
4,399
8
0
3,333
5,296
15
0
2
1
1
4
2
2,688
4,399
4
-4
672
62%
(2.45)
3,333
5,296
8
-7
417
3,396
5,395
9
1
377
n/a
n/a
Term to
2015
2017
Total
Rural
4
3
7
Urban
3
5
8
All EM positions declared vacant
Commissioners installed
Term to
2017
2019
Total
Term to
2019
2021
Total
Rural
2
2
4
Urban
2
2
4
No Wards
4
5
9
9th elected member
position comes into effect
4.4
Elected Members - Payments
Shire
Town
Total
Adopted
2013-2014
Adopted
2013-2014
Adopted
2013-2014
n/a
n/a
n/a
18,500
20,000
1,600
18,500
20,000
1,600
5,000
as for Crs
as for Crs
n/a
n/a
n/a
5,000
n/a
n/a
Deputy President / Mayor Annual Allowance
None
4,625
4,625
Councillors Annual Meeting - Council & Committees
Meeting
Committee
Other authorised meetings
ICT Allowance
n/a
88
44
44
None
8,500
n/a
n/a
None
500
8,500
n/a
n/a
None
500
7,040
13
29,500
53
89,296
42
121,725
58
96,336
36
151,225
57
Mayor Annual Allowance
Annual Meeting - Council & Committees
ICT Allowance
President Annual Allowance
Meeting
Committee
Payments Actual 2012-2013
per Assessment
Budget 2013-2014
per Assessment
Travel As set by Salaries and Allowances Tribunal
Other Allowances As determined by Act, Regulations or SAT
includes President
includes President
except Mayor
5.2
Workforce
As per Workforce Plan
Function
Chief Executive Officer
EA to CEO
Shire
Town
Total
1.0
0.4
1.00
1.00
2.00
1.40
0.00
Director - Corporate & Community
Services
1.00
1.00
Finance Manager
Debtors/Rates Officer
Payroll Officer
Creditors Officer
Finance Support Officer
Records Officer
Reception
Corp Services Admin Officer
Healthy Lifestyle Coordinator
Healthy Comm'ty Admin Officer
PACE Coordinator
PACE Support Workers
Librarian
Library Officers
Manager Leisure & Culture
0.5
0.6
0.5
1.00
0.6
2.00
0.15
0.25
1.00
1.00
1.00
2.10
1.00
Director - Technical &
Environmental Services
1.00
Building Officer/Inspector
Rangers
Community Emergency
Management Officer (planned)
Environmental Health Surveyor
Cleaners
Caravan Park Caretaker
1.00
3.00
0.70
3.15
1.25
1.00
14.55
0.8
0.4
0.1
1.00
0.1
0.10
0.20
0.1
0.40
1.45
0.40
1.00
0.40
1.55
0.40
0.00
1.00
0.00
1.00
3.00
1.10
1.00
1.00
13.50
0.00
1.00
0.00
0.50
1.00
56.80
75.90
1.00
1.00
3.00
1.10
1.0
1.0
10.5
Mechanic
1.0
Depot admin
Trainee Building surveyor
0.5
TOTAL - FTE
0.00
1.00
0.00
0.00
0.00
1.00
Works Supervisor
Gardeners
Parks & gardens staff
Waste Site Attendants
Works Manager
Leading Hand
General hands/plant operators
0.00
1.00
0.00
1.35
1.60
1.50
1.00
0.00
0.00
1.00
0.60
2.00
0.00
0.00
0.00
0.00
0.00
0.00
1.00
0.60
0.80
0.40
1.00
2.10
1.00
0.00
1.00
3.00
0.70
3.15
1.25
1.00
14.55
1.00
0.60
Manager Leisure Centre
Leisure Centre Staff
Creche
Life guard
Swimming teacher
Manager Community Care
Home Care Support Workers
Arts Officer (12 mths, fully funded)
0.85
1.00
1.00
1.00
1.00
19.1
3.00
Function
New Entity
Chief Executive Officer
EA to CEO
Governance & Compliance Officer
Director - Finance & Corporate
Services
EA to DCCS / DFCS
Manager Finance
Senior Finance Officer
Debtors/Rates Officer
Payroll Officer
Creditors Officer
Finance Officer
Grants Officer
Manager Admin & HR
Records Officer
Licencing & Customer Service
Possible
"Growth"
1.00
1.00
0.00
0.50
1.00
0.50
0.00
0.00
(0.15)
(0.20)
(0.10)
0.00
0.00
0.00
0.00
2.00
(2.00)
0.00
0.00

1.00

0.60
1.00
1.00
0.60
0.00
0.00
0.00
0.00
(0.10)
0.00
0.00
0.00
(0.50)
0.00
(0.15)
(1.25)
0.00
(0.05)

1.20
1.40
1.40
1.00
1.00
2.60
0.25
0.00
1.00
0.00
0.60
1.00
0.60
0.00
1.00
0.40
1.00
0.40
TOTAL - FTE
1.00
1.00
1.00
1.00
1.00

1.00
Tfr?
Tfr?


0.60
1.00
1.00
0.00
0.60
0.40
0.40
(0.20)
0.05
(0.40)
1.00
0.00
1.00
0.00
0.00
0.00
0.00
0.00
(2.00)
1.00
0.00
0.00
0.10
0.00
0.80
1.00
Community Emergency Mgmt Officer
Environmental Health Officer
Cleaners
Caravan Park Officer
Manager Operations
Townsites Supervisor
Leading Hand Parks & Gardens
Gardeners
General hands/plant operators
Waste Site Attendants
Construct & Mtce Supervisor
Leading Hand Grader Operator
General hand/plant operators
Operations Support Coordinator
Mechanic
Apprentice mechanic
Storeperson
Trainee Surveyor
1.00
1.00
0.60
Future
Notional
1.00
1.00
Director - Strategic & Community
1.00
Development
0.60
EA to DSCD
Strategic Planning & Projects Officer
Coordinator Community Services
Community Development Officer
1.00
Community Program Officers
0.60
PACE Coordinator
0.80
PACE Spport Workers
0.40
Manager Library & Info Services
1.00
Library Officers
2.00
Manager Leisure Services
1.00
Program Coordinator
1.00
Manager Leisure Centre
2.50
Leisure Centre Staff
0.70
Creche
3.00
Life guard
0.00
Swimming teacher
Manager Community Care
1.00
Home Care Staff
14.50
Director - Infrastructure & Technical
Services
EA to DTES / DITS
Building Surveyor
Building Maintenance Officer
Admin support
Trainee Blg Surveyor
Manager Regulatory Services
Rangers
Redeployed
(1.00)
(0.40)
0.00
IT Support
OSH & Operational Risk Mgmt
Arts Officer (fully funded)
Variance
0.20
1.60
1.00
1.00
1.00
1.00
3.00
1.10
1.00
1.00
11.50
1.00
1.00
0.60
1.00
74.05
6.60
4.75

0.40



1.00
10.20
5.7
Future Organisational structure - Options
Amendments to be made prior to being finalised and approved by future Council and CEO
Option 1 -
4 Directorates -
Corporate Services
Strategic and Community Planning
Planning and Development
Towns and Rural Services
Option 2a -
3 Directorates -
Finance and Corporate Services
Strategic and Community Development
Infrastructure and Technical Services
Option 2b -
3 Directorates -
Finance and Corporate Services
Regulatory and Compliance Services
Infrastructure and Technical Services
6.5
Airport
Aquatic Centre
Asset and building maintenance
Asset management
Building control and licenses
Bush fire control
Citizenship ceremonies
Community and cultural development
Community information services
Complaint handling
Crossovers
Demolition permits
Dog control
Drum Muster collection
Elected Member support
Environmental health services
Finance – debtors, creditors etc
Finance – management functions etc.
Footpaths / kerbing – Construction
Footpaths/ kerbing – Maintenance
General administration
Governance
Health and food inspections
Human resource management
Infringements / Fines Registry
Insurance portfolio and renewal
IT systems
Leases
Library
Media releases
Natural resource management
Noise and pollution control
Parks, gardens and reserves
Payroll
Private works
Public buildings for hire – management
Public open spaces
Rates
Records management
Recreation Centre
Recreation facilities
Refuse collection – household, business, street
Refuse disposal site – maintenance
Remote site ranger services
Road construction
Road maintenance
School trophies and prizes
Sportsgrounds
Statutory planning control
Stormwater and drainage
Street lighting
Street tree planting
Street tree pruning
Tourism
Townsite gardens
Traffic control devices
Vehicle licencing
Verge maintenance
Vermin and weed control
Visitors Centre operation
Service Provision
Unless provided by both, only by Shire
Town
Shire
Town
Town
Town
Town
Town
8.2
Financial Assistance Grants - Projected
Year
Shire
Town
Total
1,054,358
1,099,575
1,579,893
1,670,192
New Entity
Actual 2012-2013
2013-2014
525,535
570,617
Projections New entity increased by 5% pool growth per annum during amalgamation principle
2014-2015
587,736
1,132,562
1,720,298
2015-2016
605,368
1,166,539
1,771,907
2016-2017
623,529
1,201,535
1,825,064
2017-2018
642,235
1,237,581
1,879,816
2018-2019
661,502
1,274,709
1,936,211
1,753,702
1,841,387
1,933,456
2,030,129
2,131,635
Projected allocation at end of grant maintenance period
2019-2020
1,805,314
Projected allocation under maximum reduction policy
2019-2020
681,347
1,312,950
2020-2021
701,787
1,352,338
2021-2022
722,841
1,392,909
2022-2023
744,526
1,434,696
2023-2024
766,862
1,477,737
2024-2025
789,868
1,522,069
Potential net benefit to
Potential cumulative loss to
1,994,297
2,054,125
2,115,750
2,179,222
2,244,599
2,311,937
1,811,890
1,865,143
1,926,767
1,990,239
2,055,616
2,122,954
2018-2019
2024-2025
557,013
570,308
Source - Dept of Local Government and Communities 23 October 2013
Note - 10 year projections based on assumptions re growth in pool and increasing equalisation
requirement for the new entity.
- Projections are considered less reliable as the out years increase.
8.3.3
Year
Regional Road Group - Project Funds
Shire
Max. Grant
Actual
Town
Max. Grant
Actual
Total
Max. Grant
Actual
Actual 2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
234,000
226,500
225,000
250,000
250,000
325,000
350,000
171,900
174,600
179,015
223,238
238,416
286,050
327,792
234,000
226,500
225,000
250,000
250,000
325,000
350,000
72,000
60,000
29,416
110,214
89,973
208,533
78,299
468,000
453,000
450,000
500,000
500,000
650,000
700,000
243,900
234,600
208,431
333,452
328,389
494,583
406,091
The Regional Road Group adopted the following resolution Friday, 15 November 2013 “That amalgamating councils receive a maximum allocation of 100% of the average allocations the combined councils
received three years immediately prior to the amalgamation for a period of five years. A review will commence in the 4th year.
In the event that the maximum allocation of an individual council is greater than the average allocation, the maximum
allocation of the individual council will stand.”
Allocation if 5% annual pool increase
Year
Shire
Town
Funding
Pool
Total
New Entity
Revised
Max. Grant
Formula
Eligibility
Loss
Projections 2014-2015
2015-2016
2016-2017
2017-2018
2018-2019
2019-2020
2020-2021
2021-2022
2022-2023
2023-2024
2024-2025
367,500
385,900
405,200
425,500
446,800
469,100
492,600
517,200
543,100
570,300
598,800
367,500
385,900
405,200
425,500
446,800
469,100
492,600
517,200
543,100
570,300
598,800
Formula 2015-2016 to 2019-2020 assumes maximum
allocation in previous applicable years
735,000
771,800
810,400
851,000
893,600
938,200
985,200
1,034,400
1,086,200
1,140,600
1,197,600
409,688
409,688
409,688
409,688
409,688
-
409,688
409,688
425,500
446,800
469,100
492,600
517,200
543,100
570,300
598,800
362,112
400,712
425,500
446,800
469,100
492,600
517,200
543,100
570,300
598,800
Potential cumulative loss to
Potential cumulative loss to
2019-2020
2024-2025
2,104,225
4,826,225
385,900
405,200
425,500
446,800
469,100
492,600
517,200
543,100
570,300
598,800
8.5
Reserve Accounts
Shire
Actual
Reserve name
2012-2013
Reserves for Discretionary use
Plant
920,805
Property Maintenance
Leave
Office Equipment
Budget
2013-2014
197,600
Town
%
Change
-79%
7,078
7,268
3%
78,336
13,631
72,786
8,971
-7%
-34%
Actual
Reserve Name
2012-2013
Reserves for Discretionay use
Fleet Vehicle
Replacement
0
Plant, Vehicle &
357
Equipment
78,854
Plant & Depot
0
Building
10,724
13
Property Development
108,026
132
Employee Entitlement
50,000
16
Economic Development
Narrogin Promotion
Refuse
Narrogin Regional
Recreation Complex
Emergency Services
Sub-Total
Reserves to be Quarantined
Road Construction
1,019,850
286,625
-72%
518
429,400
344,055
-20%
622
8.6
%
per Ass't
Change 2013-2014
n/a
0
-
78,854
0
68,750
0
50,000
0%
37
n/a
541%
-100%
0%
0
0
240,663
50,000
0
240,663
n/a
n/a
0%
33
24
24
114
0
0
n/a
-
12,590
12,590
0%
6
500,857
500,857
0%
238
8,615
3,115
-64%
1
80,530
571,670
45,530
421,669
-43%
-26%
22
200
1,541,344
0
-100%
2,202,159
470,314
-79%
223
2,703,016
971,171
-64%
461
Reserves to be Quarantined
Community Assisted
Transport (CAT) Vehicle
Replacement
J Hogg Memorial
Aged Care Development
Unspent Grants and
Contributions
Totals
Budget
2013-2014
per Ass't
2013-2014
429,400
344,055
-20%
622
1,449,250
630,680
-56%
712
Totals
-
Loans - Principal outstanding and annual repayments
Shire
Town
Actual
2012-2013
Budget
2013-2014
63,893
50,236
152,722
46,990
17,236
126,333
-26%
-66%
-17%
85
31
228
Sub-Total
266,851
190,559
-29%
345
Total Principal paid
Total Interest paid
Total Repayments
71,635
21,618
93,253
76,292
16,961
93,253
7%
-22%
0%
138
31
169
11.6%
11.0%
Actual
2012-2013
Budget
2013-2014
474,321
111,090
220,000
281,386
177,243
437,514
88,880
178,857
257,837
168,734
-8%
-20%
-19%
-8%
-5%
208
42
85
122
80
1,264,040
1,131,822
-10%
538
55,736
35,249
90,985
132,209
57,828
190,037
137%
64%
109%
63
27
90
Repayments % of Rates
3.2%
6.2%
NOTE If amalgmation proceeds, Town loan 125 will be retired as part of the transition funding Revised Principal O/S
Revised Repayments
Revised Repay % Rates
1,044,040
90,985
3.2%
952,965
141,784
4.6%
-9%
56%
453
67
Loan
Principal Outstanding
- Loan 49
- Loan 50
- Loan 51
Repayments % of Rates
%
Change
per Ass't
2013-2014
Loan
Principal Outstanding
- Loan 121B
- Loan 124
- Loan 125
- Loan 126
- Loan 127
Sub-Total
Total Principal paid
Total Interest paid
Total Repayments
%
per Ass't
Change
2013-2014
8.7
Fees and Charges - Categories
Legislative - prescribed
Restricted - within limits by legislation
By Category and Sub-Category
Discretionary - through local law or Budget
Type
L
L
L
R
Shire
R
Dog Registration
Cat Registration
Shire number plates
Rates - Penalties, admin charges
Building services Applications, certificates, demolition
etc
Health services Septic tanks
R
D
Meat inspection
Rubbish - refuse and recycling
R
Type
L
L
L
R
R
R
D
D
D
D
D
D
D
D
Aerodrome user and rent
D
R
R
Sundry Debtors Outstanding - Interest
D
Private works - road sweeper, trucks,
loader etc
R
D
D
D
D
Miscellaneous Sales - Water, maps etc
Admin - Enquiry fees, copying etc
Dog Registration
Cat Registration
Town number plates
Rates - Penalties, admin charges
Building services Applications, certificates,
demolitions etc
Health services Waste water treatment
Caravan Park registration
Itinerant vendors
Food registration premises
Rubbish - Refuse
Refuse site - tipping charges
Cemetery
Use of premises Town Hall & Reception Centre
Community Complex
Sportsgrounds
Recreation Complex
Aquatic Centre
Statutory Planning charges Home occupation
Application, Development
D
D
D
D
D
Private works - grader, loader, truck,
roller etc
Town
D
D
Ranger Services - impounding, care
release, trap hire
Caravan Park
Miscellaneous Sales - Water etc
Admin - Enquiry fees, copying etc
(various venues)
Action
OK
OK
Align commission/fee
To be aligned
To be aligned
To be aligned
OK
OK
OK
OK
To be aligned
OK
OK
OK
OK
OK
OK
OK
OK
OK
OK
To be aligned. Some overlap of plant
types, and consequently, varying rates.
Consider single schedule of hire
charges.
OK
OK
OK
OK
To be aligned
Significant alignment needed
8.8
Annual Budget - Rate Setting Statement
Shire
Actual
2010-2011
Town
Actual
Actual
Budget
2011-2012
2012-2013
2013-2014
% Change
10/11-13/14
per Ass't
2013-2014
Actual
Actual
Actual
Budget
% Change
per Ass't
2010-2011
2011-2012
2012-2013
2013-2014
10/11-13/14
2013-2014
Revenue
Governance
GP Funding
Law, Order and PS
Health
Education and Welfare
Housing
Community Amenities
Recreation and Culture
Transport
Economic Services
Other property and services
Sub-Total
484,000
862,752
26,724
2,752
100,734
16,800
34,609
57,216
973,189
14,547
177,924
2,751,247
0
1,134,339
32,531
2,538
67,156
16,200
47,650
4,335
2,546,549
10,842
137,243
3,999,383
97,543
973,564
27,646
3,061
49,005
15,671
51,133
10,049
4,571,873
8,921
214,727
6,023,193
23,450
528,986
17,089
2,500
52,429
18,200
51,830
80,609
3,181,691
10,850
170,100
4,137,734
-95%
-39%
-36%
-9%
-48%
8%
50%
41%
227%
-25%
-4%
50%
42
957
31
5
95
33
94
146
5,754
20
308
7,482
76,321
1,283,790
13,835
592
1,173,361
0
576,035
499,493
272,078
191,456
266,093
4,353,054
64,072
1,391,225
7,027
3,924
1,219,127
0
644,604
1,003,859
142,814
332,180
28,327
4,837,159
44,643
1,288,800
34,952
4,653
1,363,732
4,527
991,916
920,620
24,476
507,159
159,969
5,345,447
5,100
704,157
28,340
6,000
1,340,095
10
783,640
787,478
33,645
455,190
51,350
4,195,005
-93%
-45%
105%
914%
14%
n/a
36%
58%
-88%
138%
-81%
-4%
2
335
13
3
637
0
372
374
16
216
24
1,993
Expenses
Governance
GP Funding
Law, Order and PS
Health
Education and Welfare
Housing
Community Amenities
Recreation and Culture
Transport
Economic Services
Other property and services
Sub-Total
299,508
29,009
56,518
39,528
38,505
9,270
93,103
204,530
1,583,435
55,502
71,684
2,480,592
309,587
29,210
51,316
28,347
71,803
17,717
111,122
138,038
2,708,764
56,249
3,220
3,525,373
250,041
30,912
64,766
44,406
84,445
15,057
118,840
145,333
3,321,038
55,680
8,735
4,139,253
253,914
38,270
64,138
47,060
77,118
11,975
123,464
228,822
3,684,868
69,780
20,568
4,619,977
-15%
32%
13%
19%
100%
29%
33%
12%
133%
26%
-71%
86%
459
69
116
85
139
22
223
414
6,663
126
37
8,354
481,077
67,221
345,547
166,539
1,162,827
0
873,929
2,411,746
970,225
242,526
676,037
7,397,674
684,985
101,373
193,579
131,537
1,256,205
0
699,439
2,683,493
1,062,549
442,552
218,614
7,474,326
969,841
134,356
213,984
120,846
1,276,653
24,183
802,057
2,517,983
996,838
533,999
175,472
7,766,212
923,753
203,530
258,349
94,072
1,448,481
0
932,532
2,820,472
1,079,744
580,477
56,080
8,397,490
92%
203%
-25%
-44%
25%
n/a
7%
17%
11%
139%
-92%
14%
439
97
123
45
688
0
443
1,340
513
276
27
3,989
270,655
474,010
(482,243)
-278%
(872)
(3,044,620)
(2,637,167)
(2,420,765)
(4,202,485)
38%
(1,996)
Non-Cash Revenue (Expenes)
Capital Revenue (Expenses)
Surplus (Deficit) B/Fwd
742,065
(1,485,383)
215,016
690,059
(1,658,711)
421,257
625,116
(3,101,601)
634,538
737,457
(1,948,327)
843,569
-1%
31%
1,334
(3,523)
703,753
(85,211)
533,880
786,720
(791,647)
569,684
1,220,757
(1,082,903)
503,425
943,141
(736,596)
941,500
34%
764%
448
(350)
Net Requirement
(257,647)
(73,385)
41,993
(849,544)
230%
(1,536)
(1,892,198)
(2,072,410)
(1,779,486)
(3,054,440)
61%
(1,451)
Amount to be raised from Rates
678,904
707,923
801,574
849,545
25%
1,536
2,461,882
2,575,835
2,884,055
3,054,440
24%
1,451
Surplus (Deficit) C/Fwd
421,257
634,538
843,567
1
569,684
503,425
1,104,569
0
Net Result excluding Rates
1,883,940
Actual
2010-2011
Actual
2011-2012
Combined
Actual
Budget
2012-2013
% Change
10/11-13/14
2013-2014
per Ass't
2013-2014
Forecast
Forecast
New Entity
Forecast
Forecast
2014-2015
2015-2016
2016-2017
2017-2018
% Change
14/5-17/18
per Ass't
2017-2018
Revenue
Governance
GP Funding
Law, Order and PS
Health
Education and Welfare
Housing
Community Amenities
Recreation and Culture
Transport
Economic Services
Other property and services
Sub-Total
560,321
2,146,542
40,559
3,344
1,274,095
16,800
610,644
556,709
1,245,267
206,003
444,017
7,104,301
64,072
2,525,564
39,558
6,462
1,286,283
16,200
692,254
1,008,194
2,689,363
343,022
165,570
8,836,542
142,186
2,262,364
62,598
7,714
1,412,737
20,198
1,043,049
930,669
4,596,349
516,080
374,696
11,368,640
28,550
1,233,143
45,429
8,500
1,392,524
18,210
835,470
868,087
3,215,336
466,040
221,450
8,332,739
-95%
-43%
12%
154%
9%
8%
37%
56%
158%
126%
-50%
17%
11
464
17
3
524
7
314
327
1,210
175
83
3,135
79,835
1,937,103
42,686
5,957
1,370,339
17,582
755,557
832,264
2,478,655
348,506
261,522
8,130,006
81,431
1,995,217
43,539
6,076
1,425,153
18,110
800,890
882,200
2,577,801
358,961
269,368
8,458,746
83,060
2,055,073
44,410
6,197
1,482,159
18,653
848,944
935,132
2,680,913
369,730
277,449
8,801,720
84,721
2,116,725
45,298
6,321
1,541,445
19,212
899,880
991,240
2,788,150
380,822
285,773
9,159,588
6%
9%
6%
6%
12%
9%
19%
19%
12%
9%
9%
13%
32
796
17
2
580
7
339
373
1,049
143
108
3,446
Expenses
Governance
GP Funding
Law, Order and PS
Health
Education and Welfare
Housing
Community Amenities
Recreation and Culture
Transport
Economic Services
Other property and services
Sub-Total
780,585
96,230
402,065
206,067
1,201,332
9,270
967,032
2,616,276
2,553,660
298,028
747,721
9,878,266
994,572
130,583
244,895
159,884
1,328,008
17,717
810,561
2,821,531
3,771,313
498,801
221,834
10,999,699
1,219,882
165,268
278,750
165,252
1,361,098
39,240
920,897
2,663,316
4,317,876
589,679
184,207
11,905,465
1,177,667
241,800
322,487
141,132
1,525,599
11,975
1,055,996
3,049,294
4,764,612
650,257
76,648
13,017,467
51%
151%
-20%
-32%
27%
29%
9%
17%
87%
118%
-90%
32%
443
91
121
53
574
5
397
1,147
1,793
245
29
4,897
1,013,803
135,921
298,967
163,194
1,348,685
13,507
935,477
2,862,397
3,760,473
485,278
167,332
11,185,033
1,044,217
141,358
316,905
171,353
1,402,633
14,047
972,896
3,034,141
3,986,102
509,542
174,025
11,767,218
1,075,544
147,013
335,919
179,921
1,458,738
14,609
1,011,811
3,216,189
4,225,268
535,019
180,986
12,381,017
1,107,810
152,893
356,074
188,917
1,517,087
15,193
1,052,284
3,409,160
4,478,784
561,770
188,226
13,028,199
9%
12%
19%
16%
12%
12%
12%
19%
19%
16%
12%
16%
417
58
134
71
571
6
396
1,283
1,685
211
71
4,902
(2,773,965)
(2,163,157)
(536,825)
(4,684,728)
69%
(1,763)
(3,055,027)
(3,308,472)
(3,579,296)
(3,868,611)
27%
(1,455)
Non-Cash Revenue (Expenses)
Capital Revenue (Expenses)
Surplus (Deficit) B/Fwd
1,445,818
(1,570,594)
748,896
1,476,779
(2,450,358)
990,941
1,845,873
(4,184,504)
1,137,963
1,680,598
(2,684,923)
1,785,069
16%
71%
632
(1,010)
672
1,580,430
(2,524,895)
1
1,627,843
(2,651,140)
235,227
1,676,678
(2,783,697)
468,460
1,726,979
(2,922,882)
958,169
9%
16%
650
(1,100)
360
Net Requirement
(2,149,845)
(2,145,795)
(1,737,493)
(3,903,984)
82%
(1,469)
(3,999,491)
(4,096,542)
(4,217,854)
(4,106,344)
3%
(1,545)
3,140,786
3,283,758
3,685,629
3,903,985
24%
1,469
4,234,718
4,565,002
5,176,023
5,341,965
26%
2,010
990,941
1,137,963
1,948,136
1
0
235,227
468,460
958,169
1,235,621
Net Result excluding Rates
Amount to be raised from Rates
Surplus (Deficit) C/Fwd
465
8.9
Financial Ratios
Shire
Town
2010-2011
2011-2012
2012-2013
2010-2011
2011-2012
2012-2013
0.63
5.2
0.40
0.14
n/a
1.92
n/a
1.62
2.16
0.60
0.05
n/a
2.2
n/a
1.53
13.22
0.88
0.25
n/a
3.05
n/a
1.12
4.32
0.54
(0.16)
n/a
0.41
n/a
1.08
9.92
0.56
(0.02)
n/a
0.55
n/a
1.29
21.42
0.65
0.13
0.5
1.14
3.15
Current
Debt service cover
Own source revenue cover
Operating surplus
Asset consumption
Asset sustainability
Asset renewal funding
The ratios are calculated as follows Current Ratio =
Debt Service Cover =
current assets minus restricted assets
current liabilities minus liabilities associated with restricted assets
annual operating surplus before interest and depreciation
principal and interest
own source operating revenue
operating expense
Own Source Revenue Coverage =
Operating Surplus =
operating revenue minus operating expense
own source operating revenue
Asset consumption =
depreciated replacement cost of depreciable assets
current replacement cost of depreciable assets
Asset sustainability =
capital renewal and replacement expenditure
depreciation expense
NPV of planned capital renewals over 10 years
NPV of required capital expenditure over 10 years
Asset renewal funding =
Local Government Guidelines No.18 Financial Ratios Ratio
Current
Debt service cover
Own source revenue cover
Operating surplus
Asset consumption
Asset sustainability
Asset renewal funding
Basic
Standard
> 1.0
>2 <5
> 0.4
> 0.01 <0.15
Intermediate
Improving
>5
> 0.9
>0.15
>0.4 <0.9
> 0.5
0.9
>0.75 <0.95
Advanced
>0.6 <0.75
>0.9 <1.1
>0.95 <1.05
9.1
Rates Comparison - Adjoining Shires
Comparison Shires - 2013-2014
Cuballing
Wagin
Wickepin
Williams
Katanning
Unimproved Value - Rate in $
Minimum
Gross Rental Value - Rate in $
Minimum
0.006091
600.00
0.065802
550.00
0.006940
480.00
0.112400
480.00
0.009685
310.00
0.075246
310.00
0.005714
460.00
0.051467
460.00
0.008753
760.00
0.089420
760.00
9.A
Rates Comparison - Shire & Town
Shire
Current 2013-2014
Unimproved Value - $
Minimum - $
Gross Rental Value - $
Minimum - $
Specified Area Rates
Differential Rates
Discount %
Discount period
Instalment options
Instalment interest
Instalment admin charge
Late payment penalty interest
Other early payment incentives
9.B
$
Town
0.00500
525.00
0.05500
525.00
none
none
0.11290
935.00
none
none
none
none
10%
35 days
4 only
5.0%
5.00
11%
No
No
n/a
4 only
5.5%
9.00
11%
cash prizes
$
Comment
Parity Factor - Principles
Agreed Principles a)
b)
c)
d)
e)
GRV rate in the $ is to be increased to parity with the Town/Urban Ward.
This increase is to be applied equally over a period of 10 years and is in addition to the normal rate increases
applied by the new entity.
UV rate in the $ is to be increased to the current (2013) Wagin rate in the $.
This increase is to be applied equally over a period of 10 years and is in addition to the normal rate increases
applied by the new entity.
All minimums are to be raised to equality with the Town/Urban Ward minimum rate.
This increase is to be applied equally over a 10 year period and is in addition to the normal rate increases
applied by the new entity, except for Rural Townsite (Highbury) minimums.
The Rural Town site of Highbury GRV minimum is to be calculated at 75% of the normal minimum rate,
subject to there being no reduction in minimum rate.
This is considered equitable, as the Highbury townsite is separated from the main urban area of Narrogin,
and market values of vacant land in the townsite are very substantially less than in Narrogin.
Differential rating will be required to be used for GRV Rural, GRV Rural Minimums and GRV Rural Townsite Minimums
9.C
Parity Factor - Calculation
Agreed position Phase in Period - years
10
Unimproved Value
Wagin - Comparison Shire
Town / Urban
Shire / Rural
Difference
Annual increment over 10 yrs
Natural increase
Total increase
0.00694
n/a
0.00500
38.8%
3.9%
7.0%
10.9%
Unimproved minimums
Town / Urban
Shire / Rural
Difference
Annual increment over 10 yrs
Natural increase
Total increase
935
525
78.1%
7.8%
7.0%
14.8%
Gross Rental Value - Urban
Annual increment over 10 yrs
Natural increase
Total increase
0.0%
7.0%
7.0%
Parity factor
Gross Rental minimums - Urban
Annual increment over 10 yrs
Natural increase
Total increase
0.0%
7.0%
7.0%
Parity factor
Gross Rental Value - Rural
Wagin - Comparison Shire
Town / Urban
Shire / Rural
Difference
Annual increment over 10 yrs
Natural increase
Total increase
0.11240
0.11290
0.05500
105.3%
10.5%
7.0%
17.5%
Gross Rental minimums - Rural
Town / Urban
Shire / Rural
Difference
Annual increment over 10 yrs
Natural increase
Total increase
935
525
78.1%
7.8%
7.0%
14.8%
GRV minimum - Rural Townsite
Shire / Rural
- % of GRV Rural minimum
525
75%
Parity target
Parity factor
Parity target - Town min
Parity factor
Approx parity
Parity target
Parity factor
Parity target - Town min
Parity factor
No reduction on current
Parity target - 75% GRV Rural min
9.D
Cash Prizes - % of rates
Phasing in of Rates - UV, GRV, minimums
0.40%
0.40%
Shire
Shire - cease cash prizes
Town
2014-2015
Unimproved Value - Rate in $
UV Minimum
Gross Rental Value - Rate in $
Urban GRV Minimum
Highbury Minimum
$
0.00555
603
0.06463
603
525
Increase
11.00%
14.86%
17.51%
14.86%
0%
2015-2016 - New Entity
Unimproved Value - Rate in $
UV Minimum
Gross Rental Value - Rate in $
Urban GRV Minimum
Highbury Minimum
0.00615
692
0.07594
692
525
10.81%
14.76%
17.50%
14.76%
0.00%
none
none
0.12926
1,070
n/a
2016-2017
Unimproved Value - Rate in $
UV Minimum
Gross Rental Value - Rate in $
Urban GRV Minimum
Highbury Minimum
0.00682
794
0.08923
794
596
10.89%
14.74%
17.50%
14.74%
13.43%
none
none
0.13831
1,145
n/a
2017-2018
Unimproved Value - Rate in $
UV Minimum
Gross Rental Value - Rate in $
Urban GRV Minimum
Highbury Minimum
0.00756
912
0.10485
912
684
10.85%
14.86%
17.51%
14.86%
14.86%
none
none
0.14799
1,225
n/a
2018-2019
Unimproved Value - Rate in $
UV Minimum
Gross Rental Value - Rate in $
Urban GRV Minimum
Highbury Minimum
0.00838
1,047
0.12320
1,047
785
10.85%
14.80%
17.50%
14.80%
14.80%
none
none
0.15835
1,311
n/a
2019-2020
Unimproved Value - Rate in $
UV Minimum
Gross Rental Value - Rate in $
Urban GRV Minimum
Highbury Minimum
0.00929
1,202
0.14476
1,202
902
10.86%
14.80%
17.50%
14.80%
14.80%
none
none
0.16943
1,403
n/a
2020-2021
Unimproved Value - Rate in $
UV Minimum
Gross Rental Value - Rate in $
Urban GRV Minimum
Highbury Minimum
0.01030
1,380
0.17009
1,380
1,035
10.87%
14.81%
17.50%
14.81%
14.81%
none
none
0.18129
1,501
n/a
2021-2022
Unimproved Value - Rate in $
UV Minimum
Gross Rental Value - Rate in $
Urban GRV Minimum
Highbury Minimum
0.01142
1,584
0.19398
1,584
1,188
10.87%
14.78%
14.05%
14.78%
14.78%
none
none
0.19398
1,606
n/a
2022-2023
Unimproved Value - Rate in $
UV Minimum
Gross Rental Value - Rate in $
Urban GRV Minimum
Highbury Minimum
0.01266
1,718
0.20756
1,718
1,289
10.86%
8.46%
7.00%
8.46%
8.46%
none
none
0.20756
1,718
n/a
Rural Ward
$
Increase
none
none
0.12080
1,000
n/a
7.00%
6.95%
Urban Ward
7.00%
7.00%
7.00%
7.01%
Phase in - 75% takes effect
7.00%
6.99%
7.00%
7.02%
7.00%
7.02%
7.00%
6.99%
7.00% Adjusted - Phase in complete
7.00%
Phase in complete
Adjusted - Phase in complete
7.00%
6.97% Adjusted - Phase in complete
9.E
2013-2014 - Current
Unimproved Value
Rate in $
Total Valuation
No. of Properties
Minimum Payment
No on Minimum
Minimum Rates Yield
Non-Minimum Rate Yield
Total UV Rate Yield
Average UV Rate
UV % of Overall Rate Yield
Gross Rental Value
Rate in $
Total Valuation
Total No. of Properties
Urban GRV Minimum
No.on Urban GRV Minimum
Highbury Minimum
No on Highbury Minimum
Minimum Rates Yield
Non-Minimum Rate Yield
Total GRV Rate Yield
Average GRV Rate
GRV % of Overall Rate Yield
Total Gross Rate Yield
Rates modelling - 2013-2014 to 2019-2020
Shire
0.00500
166,915,420
458
525
95
49,875
800,035
849,910
1,856
92.9%
Town
None
Total
166,915,420
458
525
95
49,875
800,035
849,910
1,856
21.7%
0.05500
761,488
95
525
12
525
27
20,475
44,853
65,328
688
7.1%
915,238
0.11290
25,794,078
2,105
935
275
n/a
n/a
257,125
2,750,938
3,008,063
1,429
100.0%
3,008,063
Discount Allowed - %
Discount Claimed - Historical %
Discount Allowed - $
Net Rate Yield After Discount
10.0%
7.4%
67,728
847,511
None
0.0%
0
3,008,063
67,728
3,991,029
UV Rate in $
UV Rate in $ After Discount
Avge UV Rate Before Discount
Avge UV Rates After Discount
0.00500
0.00463
1,856
1,718
0
0
0
0
1,856
1,718
GRV Rate in $
GRV Rate in $ After Discount
Avge GRV Rate Before Discount
Avge GRV Rate After Discount
0.05500
0.05093
688
637
0.11290
0.11290
1,429
1,429
1,397
1,395
26,555,566
2,200
287
27
277,600
2,795,792
3,073,392
1,397
78.3%
3,923,302
2014-2015
Unimproved Value
Rate in $
Total Valuation
No. of Properties
Minimum Payment
No on Minimum
Minimum Rates Yield
Non-Minimum Rate Yield
Total UV Rate Yield
Average UV Rate
UV % of Overall Rate Yield
Gross Rental Value
Rate in $
Total Valuation
Total No. of Properties
Urban GRV Minimum
No.on Urban GRV Minimum
Highbury Minimum
No on Highbury Minimum
Minimum Rates Yield
Non-Minimum Rate Yield
Total GRV Rate Yield
Average GRV Rate
GRV % of Overall Rate Yield
Total Gross Rate Yield
Shire
Town
0.00555
166,915,420
458
603
105
63,315
885,064
948,379
2,071
92.7%
Total
166,915,420
458
603
105
63,315
885,064
948,379
2,071
22.4%
0.06463
1,066,133
95
603
12
525
20
17,736
56,609
74,345
783
7.3%
1,022,724
0.12080
25,794,078
2,105
1,000
275
n/a
Discount Allowed - %
Discount Claimed - Historical %
Discount Allowed - $
Net Rate Yield After Discount
5.0%
7.4%
37,841
984,883
0.0%
0.0%
0
3,218,431
Cash Prizes - % of rates
Value of Cash Prizes
Number drawn
% of payments drawn
Net Rate Yield After Cash Prizes
0.00%
0
0.00%
984,883
0.20%
6,437
40
1.90%
3,211,994
UV Rate in $
UV Rate in $ After Incentives
Avge UV Rate Before Incentives
Avge UV Rates After Incentives
0.00555
0.00568
2,071
2,071
0
0
0
0
2,071
2,071
GRV Rate in $
GRV Rate in $ After Incentives
Avge GRV Rate Before Incentives
Avge GRV Rate After Incentives
0.06463
0.06973
783
783
0.12080
0.12452
1,529
1,526
1,497
1,494
275,000
2,943,431
3,218,431
1,529
100.0%
3,218,431
26,860,211
2,200
287
20
292,736
3,000,040
3,292,776
1,497
77.6%
4,241,155
Shire - reduce discount
37,841
4,278,995
Town - increase cash prizes
6,437
40
Draw by random number
4,234,718
2015-2016
Unimproved Value
Rate in $
Total Valuation
No. of Properties
Minimum Payment
No on Minimum
Minimum Rates Yield
Non-Minimum Rate Yield
Total UV Rate Yield
Average UV Rate
UV % of Overall Rate Yield
Gross Rental Value
Rate in $
Total Valuation
Total No. of Properties
Urban GRV Minimum
No.on Urban GRV Minimum
Highbury Minimum
No on Highbury Minimum
Minimum Rates Yield
Non-Minimum Rate Yield
Total GRV Rate Yield
Average GRV Rate
GRV % of Overall Rate Yield
Total Gross Rate Yield
Rural
Urban
0.00615
166,915,420
458
692
115
79,580
973,932
1,053,512
2,300
92.5%
Total
166,915,420
458
692
115
79,580
973,932
1,053,512
2,300
23.0%
0.07594
1,066,133
95
692
12
525
73,501
12,504
73,501
86,005
905
7.5%
1,139,517
0.12926
25,794,078
2,105
1,070
275
n/a
Discount Allowed - %
Discount Claimed - Historical %
Discount Allowed - $
Net Rate Yield After Discount
0.0%
7.4%
0
1,139,517
0.0%
0.0%
0
3,443,819
0
4,583,336
Cash Prizes - % of rates
Value of Cash Prizes
Number drawn
% of payments drawn
Net Rate Yield After Cash Prizes
0.40%
4,558
10
1.81%
1,134,959
0.40%
13,775
40
1.90%
3,430,043
Full prize level - All ratepayers eligible
18,333
50
To retain equality, should have same
chance of winning
4,565,002
UV Rate in $
UV Rate in $ After Incentives
Avge UV Rate Before Incentives
Avge UV Rates After Incentives
0.00615
0.00629
2,300
2,291
0
0
0
0
2,300
2,291
GRV Rate in $
GRV Rate in $ After Incentives
Avge GRV Rate Before Incentives
Avge GRV Rate After Incentives
0.07594
0.08035
905
902
0.12926
0.13298
1,636
1,629
1,604
1,598
294,250
3,149,569
3,443,819
1,636
100.0%
3,443,819
26,860,211
2,200
287
73,501
306,754
3,223,069
3,529,823
1,604
77.0%
4,583,336
Shire - discount removed
2016-2017
Unimproved Value
Rate in $
Total Valuation
No. of Properties
Minimum Payment
No on Minimum
Minimum Rates Yield
Non-Minimum Rate Yield
Total UV Rate Yield
Average UV Rate
UV % of Overall Rate Yield
Gross Rental Value
Rate in $
Total Valuation
Total No. of Properties
Urban GRV Minimum
No.on Urban GRV Minimum
Highbury Minimum
No on Highbury Minimum
Minimum Rates Yield
Non-Minimum Rate Yield
Total GRV Rate Yield
Average GRV Rate
GRV % of Overall Rate Yield
Total Gross Rate Yield
Rural
Urban
0.00682
166,915,420
458
794
123
97,662
1,073,809
1,171,471
2,558
92.1%
Total
166,915,420
458
794
123
97,662
1,073,809
1,171,471
2,558
22.5%
0.08923
1,066,133
95
794
12
596
4
11,910
88,804
100,714
1,060
7.9%
1,272,185
0.14799
25,794,078
2,105
1,145
192
n/a
219,840
3,704,786
3,924,626
1,864
100.0%
3,924,626
4
231,750
3,793,590
4,025,340
1,830
77.5%
5,196,811
Discount Allowed - %
Discount Claimed - Historical %
Discount Allowed - $
Net Rate Yield After Discount
0.0%
7.4%
0
1,272,185
0.0%
0.0%
0
3,924,626
0
5,196,811
Cash Prizes - % of rates
Value of Cash Prizes
Number drawn
% of payments drawn
Net Rate Yield After Cash Prizes
0.40%
5,089
10
1.81%
1,267,096
0.40%
15,699
40
1.90%
3,908,927
All ratepayers eligible
20,787
50
To retain equality, should have same
chance of winning
5,176,023
UV Rate in $
UV Rate in $ After Incentives
Avge UV Rate Before Incentives
Avge UV Rates After Incentives
0.00682
0.00699
2,558
2,548
0
0
0
0
2,558
2,548
GRV Rate in $
GRV Rate in $ After Incentives
Avge GRV Rate Before Incentives
Avge GRV Rate After Incentives
0.08923
0.09409
1,060
1,056
0.14799
0.15154
1,864
1,857
1,830
1,822
26,860,211
2,200
204
2017-2018
Unimproved Value
Rate in $
Total Valuation
No. of Properties
Minimum Payment
No on Minimum
Minimum Rates Yield
Non-Minimum Rate Yield
Total UV Rate Yield
Average UV Rate
UV % of Overall Rate Yield
Gross Rental Value
Rate in $
Total Valuation
Total No. of Properties
Urban GRV Minimum
No.on Urban GRV Minimum
Highbury Minimum
No on Highbury Minimum
Minimum Rates Yield
Non-Minimum Rate Yield
Total GRV Rate Yield
Average GRV Rate
GRV % of Overall Rate Yield
Total Gross Rate Yield
Rural
Urban
0.00756
166,915,420
458
912
128
116,736
1,185,831
1,302,567
2,844
91.7%
Total
166,915,420
458
912
128
116,736
1,185,831
1,302,567
2,844
24.3%
0.10485
1,066,133
95
912
12
684
4
13,680
104,350
118,030
1,242
8.3%
1,420,597
0.14799
25,794,078
2,105
1,225
275
n/a
336,875
3,605,947
3,942,822
1,873
100.0%
3,942,822
4
350,555
3,710,296
4,060,851
1,846
75.7%
5,363,419
Discount Allowed - %
Discount Claimed - Historical %
Discount Allowed - $
Net Rate Yield After Discount
0.0%
7.4%
0
1,420,597
0.0%
0.0%
0
3,942,822
0
5,363,419
Cash Prizes - % of rates
Value of Cash Prizes
Number drawn
% of payments drawn
Net Rate Yield After Cash Prizes
0.40%
5,682
10
1.81%
1,414,915
0.40%
15,771
40
1.90%
3,927,050
All ratepayers eligible
21,454
50
To retain equality, should have same
chance of winning
5,341,965
UV Rate in $
UV Rate in $ After Incentives
Avge UV Rate Before Incentives
Avge UV Rates After Incentives
0.00756
0.00777
2,844
2,833
0
0
0
0
2,844
2,833
GRV Rate in $
GRV Rate in $ After Incentives
Avge GRV Rate Before Incentives
Avge GRV Rate After Incentives
0.10485
0.11027
1,242
1,237
0.14799
0.15225
1,873
1,866
1,846
1,838
26,860,211
2,200
287
2018-2019
Unimproved Value
Rate in $
Total Valuation
No. of Properties
Minimum Payment
No on Minimum
Minimum Rates Yield
Non-Minimum Rate Yield
Total UV Rate Yield
Average UV Rate
UV % of Overall Rate Yield
Gross Rental Value
Rate in $
Total Valuation
Total No. of Properties
Urban GRV Minimum
No.on Urban GRV Minimum
Highbury Minimum
No on Highbury Minimum
Minimum Rates Yield
Non-Minimum Rate Yield
Total GRV Rate Yield
Average GRV Rate
GRV % of Overall Rate Yield
Total Gross Rate Yield
Rural
Urban
0.00838
166,915,420
458
1,047
140
146,580
1,302,143
1,448,723
3,163
91.3%
Total
166,915,420
458
1,047
140
146,580
1,302,143
1,448,723
3,163
25.0%
0.12320
1,066,133
95
1,047
12
785
4
15,705
122,612
138,317
1,456
8.7%
1,587,040
0.15835
25,794,078
2,105
1,311
275
n/a
360,525
3,858,380
4,218,905
2,004
100.0%
4,218,905
4
376,230
3,980,992
4,357,222
1,981
75.0%
5,805,945
Discount Allowed - %
Discount Claimed - Historical %
Discount Allowed - $
Net Rate Yield After Discount
0.0%
7.4%
0
1,587,040
0.0%
0.0%
0
4,218,905
0
5,805,945
Cash Prizes - % of rates
Value of Cash Prizes
Number drawn
% of payments drawn
Net Rate Yield After Cash Prizes
0.40%
6,348
10
1.81%
1,580,692
0.40%
16,876
40
1.90%
4,202,029
All ratepayers eligible
23,224
50
To retain equality, should have same
chance of winning
5,782,721
UV Rate in $
UV Rate in $ After Incentives
Avge UV Rate Before Incentives
Avge UV Rates After Incentives
0.00838
0.00864
3,163
3,150
0
0
0
0
3,163
3,150
GRV Rate in $
GRV Rate in $ After Incentives
Avge GRV Rate Before Incentives
Avge GRV Rate After Incentives
0.12320
0.12922
1,456
1,450
0.15835
0.16291
2,004
1,996
1,981
1,973
26,860,211
2,200
287
2019-2020
Unimproved Value
Rate in $
Total Valuation
No. of Properties
Minimum Payment
No on Minimum
Minimum Rates Yield
Non-Minimum Rate Yield
Total UV Rate Yield
Average UV Rate
UV % of Overall Rate Yield
Gross Rental Value
Rate in $
Total Valuation
Total No. of Properties
Urban GRV Minimum
No.on Urban GRV Minimum
Highbury Minimum
No on Highbury Minimum
Minimum Rates Yield
Non-Minimum Rate Yield
Total GRV Rate Yield
Average GRV Rate
GRV % of Overall Rate Yield
Total Gross Rate Yield
Rural
Urban
0.00929
166,915,420
458
1,202
146
175,492
1,436,503
1,611,995
3,520
90.9%
Total
166,915,420
458
1,202
146
175,492
1,436,503
1,611,995
3,520
25.6%
0.14476
1,066,133
95
1,202
12
902
4
18,030
144,069
162,099
1,706
9.1%
1,774,095
0.16943
25,794,078
2,105
1,403
275
n/a
385,825
4,128,357
4,514,182
2,145
100.0%
4,514,182
4
403,855
4,272,426
4,676,281
2,126
74.4%
6,288,276
Discount Allowed - %
Discount Claimed - Historical %
Discount Allowed - $
Net Rate Yield After Discount
0.0%
7.4%
0
1,774,095
0.0%
0.0%
0
4,514,182
0
6,288,276
Cash Prizes - % of rates
Value of Cash Prizes
Number drawn
% of payments drawn
Net Rate Yield After Cash Prizes
0.40%
7,096
10
1.81%
1,766,998
0.40%
18,057
40
1.90%
4,496,125
All ratepayers eligible
25,153
50
To retain equality, should have same
chance of winning
6,263,123
UV Rate in $
UV Rate in $ After Incentives
Avge UV Rate Before Incentives
Avge UV Rates After Incentives
0.00929
0.00962
3,520
3,506
0
0
0
0
3,520
3,506
GRV Rate in $
GRV Rate in $ After Incentives
Avge GRV Rate Before Incentives
Avge GRV Rate After Incentives
0.14476
0.15144
1,706
1,699
0.16943
0.17431
2,145
2,136
2,126
2,117
26,860,211
2,200
287
10.1
Comparison Shires - 2013-2014
Refuse & Recycling - Adjoining Shires
Cuballing
Wagin
Wickepin
Williams
Refuse per bin ~
None
260.00
154.50
285.00
Commercial *
305.00
Frequency
n/a
Weekly
Weekly
Weekly
Recycling ^
None
Included
Included
Included
Frequency
n/a
Fortnightly
Fortnightly
Fortnightly
Waste levy on all assessments
~ Cuballing - no refuse service
~ Katanning - option for 120 litre bin at $251.00
* Wickepin - different charges for Domestic and Commercial collection
* Katanning - charge of $900.00 on commercial premises with own waste arrangements
^ Katanning - Domestic: included. Commercial premises: first recycling bin $34.00, additonal $77.00
10.2
Recycling
Frequency
No. of bins
Budget Income Income - Rubbsh service
Contibutions
Income - Recycling
Income - Tipping fees and services
Sub-Total Income
Budget Expenditure Refuse collection - Domestic & Commercial
Refuse collection - street bins, parks etc
Refuse site maintenance
Other direct refuse costs
Employee costs
Regional Strategic Waste Management
Contribution - To Town
Recycling
Capital - Equipment
Transfer to Reserve
Sub-Total Expenses
Net (Income) Expense
329.00
900.00
Weekly
Included
Fortnightly
30.00
Refuse & Recycling Comparison - Shire & Town
Shire
Budget 2013-2014 Charges Rubbish - Domestic and Commercial
Frequency
No. of bins
Katanning
Town
Comment
Total
204 average
2,840
195
Weekly
200
205
Weekly
2,640
80
Fortnightly
142
No service
n/a
n/a
80
142
39,000
459,000
8,000
498,000
8,000
11,200
218,001
735,201
11,200
50,200
49,500
218,001
685,001
80,260
30,060
15,000
41,413
542,291
(142,710)
354,926
42,136
1,000
55,618
80,958
10,000
10,000
11,500
15,000
41,413
622,551
(112,650)
Cost per service Refuse
Recycling
344
81
201
n/a
215
81
Current under-recovery per service Refuse
Recycling
149
1
(4)
n/a
11
1
1,000
3,260
5,000
10,000
11,500
305,426
42,136
52,358
80,958
5,000
n/a
11.2 (a)
Assets and Depreciation by Category - Annual Statements
Shire
Actual
%
2012-2013
Change
Actual
2011-2012
per Ass't
2012-2013
Actual
2011-2012
Town
Actual
%
2012-2013
Change
per Ass't
2012-2013
SUMMARY
Valuation or cost
Accumulated depreciation
Written down value
WDV as a % of cost
Accumulated depreciation as % of cost
33,078,180
(8,180,547)
24,897,633
75%
25%
33,677,297
(6,152,839)
27,524,458
82%
18%
2%
-25%
11%
60,899
(11,126)
49,773
47,482,644
(29,009,304)
18,473,340
39%
61%
60,137,901
(15,984,533)
44,153,368
73%
27%
27%
-45%
139%
28,569
(7,594)
20,975
Roads
Valuation or cost
Accumulated depreciation
Written down value
WDV as a % of cost
Accumulated depreciation as % of cost
27,628,143
(5,351,678)
22,276,465
81%
19%
29,052,736
(5,797,207)
23,255,529
80%
20%
5%
8%
4%
52,537
(10,483)
42,053
14,245,553
(10,826,257)
3,419,296
24%
76%
14,560,894
(11,168,570)
3,392,324
23%
77%
2%
3%
-1%
6,917
(5,306)
1,612
0
0
0
0
0
0
0
3,171,141
(2,268,932)
902,209
28%
72%
3,199,858
(2,332,355)
867,503
27%
73%
1%
3%
-4%
1,520
(1,108)
412
0
0
0
0
0
0
0
1,762,052
(818,728)
943,324
54%
46%
1,809,135
(853,969)
955,166
53%
47%
3%
4%
1%
859
(406)
454
0
0
0
0
0
0
0
3,171,141
(2,268,932)
902,209
28%
72%
2,075,112
(917,854)
1,157,258
56%
44%
-35%
-60%
28%
986
(436)
550
0
0
0
0
0
0
0
84,007
(18,685)
65,322
78%
22%
84,007
(20,365)
63,642
76%
24%
0%
9%
-3%
40
(10)
30
0
0
0
0
0
0
0
649,696
(126,236)
523,460
81%
19%
663,399
(142,478)
520,921
79%
21%
2%
13%
0%
315
(68)
247
Land & Buildings
Valuation or cost
Accumulated depreciation
Written down value
WDV as a % of cost
Accumulated depreciation as % of cost
1,757,087
(316,740)
1,440,347
82%
18%
1,987,661
(355,632)
1,632,029
82%
18%
13%
12%
13%
3,594
(643)
2,951
22,439,655
(11,546,402)
10,893,253
49%
51%
35,834,500
0
35,834,500
100%
0%
60%
-100%
229%
17,024
0
17,024
Plant & Equipment
Valuation or cost
Accumulated depreciation
Written down value
WDV as a % of cost
Accumulated depreciation as % of cost
3,608,708
(2,512,129)
1,096,579
30%
70%
2,622,300
0
2,622,300
100%
0%
-27%
-100%
139%
4,742
0
4,742
1,299,701
(622,633)
677,068
52%
48%
999,473
(668)
998,805
100%
0%
-23%
-100%
48%
475
(0)
474
Furniture & Equipment
Valuation or cost
Accumulated depreciation
Written down value
WDV as a % of cost
Accumulated depreciation as % of cost
84,242
0
84,242
100%
0%
14,600
0
14,600
100%
0%
-83%
0%
-83%
26
0
26
659,698
(512,499)
147,199
22%
78%
911,523
(548,274)
363,249
40%
60%
38%
7%
147%
433
(260)
173
Drainage
Valuation or cost
Accumulated depreciation
Written down value
WDV as a % of cost
Accumulated depreciation as % of cost
Footpaths
Valuation or cost
Accumulated depreciation
Written down value
WDV as a % of cost
Accumulated depreciation as % of cost
Parks & Ovals
Valuation or cost
Accumulated depreciation
Written down value
WDV as a % of cost
Accumulated depreciation as % of cost
Townscape
Valuation or cost
Accumulated depreciation
Written down value
WDV as a % of cost
Accumulated depreciation as % of cost
Other Infrastructure
Valuation or cost
Accumulated depreciation
Written down value
WDV as a % of cost
Accumulated depreciation as % of cost
Notes 1. Direct comparison may be misleading as different depreciation rates may used for categories. Generally however, rates are fairly similar.
2. Shire - Independent revaluation of Land and Buildings in 2013
3. Shire - Management revaluation of and of Plant & Equipment and Furniture & Equipment in 2013
11.2 (b)
Replacement Values
Roads
Sealed
Paved
Formed
Unformed
Kerbing
Sub-Total
Buildings
Amenities Buildings
Civic and Corporate Buildings
Residential Buildings
Community Buildings
Recreation Buildings
Waste Buildings
Airport Buildings/Structures
Heritage Buildings
Other Structures
SubTotal
TOTAL
11.2 (c)
Annual amounts, over 10 years
Roads Estimated funds available
Estimated requirement
Surplus (Deficit)
Availability % of Requirement
Buildings –
Estimated funds available
Estimated requirement
Surplus (Deficit)
Availability % of Requirement
Total available
Total requirement
TOTAL - Surplus (Deficit)
Availability % of Requirement
% rate rise to cover renewal gap
Infrastructure Assets - Asset Management Plans
Km / No.
Shire
AMP
2012-2013
181.42
198.36
348.83
11.65
16.94
757.20
9,793,110
48,950,950
34,950,978
0
237,244
93,932,282
5
8
1
5
3
0
6
0
10
38
795
per Asst
2012-2013
Km / No.
59.26
9.38
0.46
361,000
5,428,000
477,000
1,477,000
381,000
40,000
2,023,000
0
425,500
10,612,500
17,709
88,519
63,202
0
429
169,859
0
0
653
9,816
863
2,671
689
72
3,658
0
769
19,191
104,544,782
189,050
Town
AMP
2012-2013
per Asst
2012-2013
Km / No.
Total
AMP
2012-2013
per Asst
2012-2013
69.10
7,597,154
7,756,450
2,227,400
0
4,737,110
22,318,114
3,609
3,685
1,058
0
2,250
10,602
240.68
207.74
349.29
11.65
16.94
826.30
17,390,264
56,707,400
37,178,378
0
4,974,354
116,250,396
6,543
21,335
13,987
0
1,871
43,736
10
8
1
14
24
3
0
3
102
165
1,730,000
4,547,000
225,000
9,746,000
32,368,000
40,000
0
18,135,000
7,028,850
73,819,850
822
2,160
107
4,630
15,377
19
0
8,615
3,339
35,069
15
16
2
19
27
3
6
3
112
203
2,091,000
9,975,000
702,000
11,223,000
32,749,000
80,000
2,023,000
18,135,000
7,454,350
84,432,350
787
3,753
264
4,222
12,321
30
761
6,823
2,804
31,765
234
96,137,964
45,671
1,029
200,682,746
75,501
Infrastructure Assets - Renewal Funding / Gap
Shire
Assessed
per Ass't
2012-2013
2012-2013
2,442,000
3,067,000
(625,000)
4,416
5,546
(1,130)
80%
168,000
373,000
(205,000)
540,000
610,000
(70,000)
257
290
(33)
304
675
(371)
1,094,000
1,036,000
58,000
520
492
28
1,634,000
1,646,000
(12,000)
2,982,000
3,677,000
(695,000)
1,122
1,383
(261)
1,262,000
1,409,000
(147,000)
475
530
(55)
90%
106%
4,720
6,221
(1,501)
Total
per Ass't
Assessed
2012-2013
2012-2013
81%
89%
45%
2,610,000
3,440,000
(830,000)
Town
Assessed
per Ass't
2012-2013
2012-2013
776
782
(6)
4,244,000
5,086,000
(842,000)
76%
99%
83%
97.9%
0.4%
21.1%
1,597
1,913
(317)
11.6
Plant and Vehicle fleet
Shire
Earthmoving Plant
Graders
Front end loaders
Tractors
Excavator
Skid steer loader
Skid steer transport trailer
Backhoe loader
Compaction equipment
16 tonne M/T roller
12 tonne vibe roller
8 tonne steel/m/t combo towed
Twin drum roller
20 tonne padfoot vibe roller
Trucks
tipper permanent spravy set up
3 tonne tipper
5 tonne side tipper
8 tonne tipper
12 tonne tipper
Flo-con (edges)
Truck mounted Paveline jet patcher
Roadsweeper
18 tonne gooseneck float and fixed dolly
Side tipper trailer and fixed dollies
Water cart - ex-fire unit
Small plant
Mulcher head (for excavator)
ATV
Ride on mower (Toro, John Deere x 2)
Forklift
Aerator
Trailer plant
3PL broom
Towed road sweeper
Trailer - mower/catcher
Trailer - mower (Toro)
Trailer - fuel
Tractor trailer - tree planter (LCDC)
Trailer
Tradesman
Mechanic
Box
Gardeners
Grafitti response
Light vehicles
CEO
Directors
Manager Finance
Manager Library
Works Manager / Supervisor
Works Foreman
Team Leader / Leading Hand
Plant operators
Gardeners
Building Surveyor
Ranger
Mechanic
Depot / Admin / Storeman
3
2
1
1
1
Town
1
1
1
1
2
1
1
1
1
1
1
1
1
4
1
1
1
1
2
1
1
1
3
1
1
1
1
1
1
1
1
1
1
2
1
1
1
1
2
1
1
1
1
2
1
1
3
1
1
1
1
Total
3
2
2
1
1
1
2
Comment
Change
Rationalise
(1)
Review
2
1
1
1
1
1
1
1
1
4
1
1
1
1
2
1
1
1
3
1
1
1
1
1
1
1
1
1
1
2
1
1
2
2
1
1
1
1
2
2
3
1
1
1
1
Under review
Emergency units
3.4 4WD Fire truck
2.4 4WD Fire truck
SES troop carrier
Trailer - fire unit
Trailer - mobile standpipe
Slip on-fire unit (Ag College)
Homecare
Admin sedan
Bus - 12 seat
Handyman utility
Handyman van
Handyman trailer
1
1
1
1
4
1
4
1
1
1
2
1
1
1
1
4
1
4
1
1
1
2
13.1 (a)
Transition Plan and Budget
Additional or marginal cost to Business As Usual
A) - Estimates for merger costs
PROJECT MANAGEMENT
Project director & on-costs
GOVERNANCE & COUNCIL
Commissioners
Special/ Inaugral election
Delegations Register, Policy Manual and systems align, merge, new
Authorised Officers - Council & CEO appointments
- review, draft schedule
Integrated Planning Framework - align, merge all
Plans
Local Planning Scheme, Strategy, Policies - align,
draft amendments
Local laws - revview/repeal, align, new
HR & WORKFORCE - SYSTEMS
Recruitment cost of new CEO
Recruitment costs for other positions
HR legal advice
HR industrial advice & support
HR consultant - specialist resources, change
management
Staff training
HR systems
CORPORATE SERVICES
Contracts & leases - review, align, assign, amend
as needed
Documents - amend as required by external
legislation or organisation
COMMUNICATIONS
Website development
Internal branding
External signage
COMMUNITY ENGAGEMENT
Development of new corporate identity
Community consultation/communication
FINANCE
Financial management planning
Update existing data, systems, accounts
Finance systems integration assistance & support
Changes to financial systems
Grants Commission - detailed submission
Year -2
Pre Planning
Year -1
Implementation
Year 1
Post Amalgamation
TOTAL
Oct-Dec
2013
Jan-Mar
2014
Apr-Jun
2014
Jul-Sep
2014
Oct-Dec
2014
Jan-Mar
2015
Apr-Jun
2015
Jul-Sep
2015
Oct-Dec
2015
Jan-Mar
2016
Apr-Jun
2016
0
0
5,305
7,958
13,263
39,788
53,050
53,050
53,050
26,525
13,263
265,250
0
0
0
0
0
0
0
0
0
0
0
0
19,408
0
63,076
3,396
14,556
19,244
0
0
0
0
97,040
22,640
0
0
2,819
4,228
0
4,228
8,456
5,637
2,819
0
0
28,185
0
0
1,980
396
0
0
792
396
396
0
0
3,960
0
0
0
45,019
45,019
22,510
33,764
22,510
22,510
11,255
22,510
225,095
0
0
0
0
5,098
0
10,195
8,118
10,195
8,118
20,390
8,118
10,195
2,030
10,195
2,030
15,293
4,059
10,195
8,118
10,195
0
101,950
40,590
0
0
0
0
0
0
0
0
0
348
2,520
430
0
348
2,520
430
0
1,044
2,520
860
5,830
1,392
5,040
1,720
3,498
1,740
5,040
2,150
2,332
1,392
5,040
2,150
0
696
2,520
860
0
0
0
0
0
0
0
0
11,660
6,960
25,200
8,600
0
0
0
0
0
0
1,498
0
1,000
4,495
0
2,000
4,495
0
500
5,993
3,538
500
5,993
15,921
4,500
4,495
5,307
1,000
2,997
3,538
500
0
3,538
0
0
3,538
0
29,965
35,380
10,000
0
0
0
0
0
15,120
4,320
2,160
0
0
0
21,600
0
0
0
0
0
0
4,160
1,040
0
0
0
5,200
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1,524
0
12,508
2,540
6,000
3,127
1,016
14,000
0
0
0
0
0
0
0
0
0
15,635
5,080
20,000
0
0
0
345
0
576
0
576
0
806
6,598
1,152
3,959
2,303
2,639
2,303
0
1,152
0
1,152
0
1,152
13,195
11,515
0
0
0
0
344
2,575
550
2,575
826
1,288
1,376
2,575
1,376
5,150
1,376
7,725
688
2,575
206
1,288
138
0
6,880
25,750
0
0
0
0
0
0
4,490
1,109
0
4,490
1,109
0
4,490
1,109
0
13,470
3,327
13,793
22,450
5,545
0
26,940
6,654
0
8,980
2,218
0
4,490
1,109
13,793
0
0
0
89,800
22,180
27,585
RECORDS MANAGEMENT
Planning framework
Integration of systems
Data integration
OFFICE AND DEPOT ACCOMMODATION
Office refurbishment - design, engineering etc
Office refurbishment - fit out
Office extensions
Depot relocation - preparation, legal, cleanup
Depot relocation - design of expansion,
engineering etc
Depot relocation - construction/ extension sheds,
facilities, workshop, chemical store
Depot relocation - fitout
INFORMATION & COMMUNICATIONS TECHNOLOGY
Communications system - modifications
Data link - 4 sites
CRITICAL - IT data - migration, merger
System hardware - integration, changes
ICT Planning / IT Project Manager
OTHER
Redundancies without redeployment
Other costs - 5% contingency
Sub - Totals
Annual
B) - Provision for on-going employment
costs
Ratchet up' costs to equalise non-contract employee
benefits
No redundancies full redeployment
Estimates for merger costs
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
2,495
1,088
0
4,990
4,350
14,182
3,743
4,350
17,728
1,248
1,088
3,546
0
0
0
0
0
0
12,475
10,875
35,455
0
0
0
3,000
0
0
0
0
0
0
0
14,000
5,000
0
14,000
4,000
10,809
112,000
4,000
21,618
112,000
4,000
8,647
28,000
0
2,162
0
0
0
0
0
0
0
20,000
43,235
280,000
0
0
0
0
0
13,600
5,440
5,440
2,720
0
0
27,200
0
0
0
0
4,775
11,141
12,732
3,183
0
0
0
31,830
0
0
0
0
0
0
0
0
0
0
63,000
0
99,000
6,045
18,000
14,105
0
0
0
0
0
0
180,000
20,150
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
162,800
0
26,163
2,375
3,779
48,840
0
11,213
7,125
30,232
162,800
27,184
0
1,781
3,779
20,350
6,796
0
594
0
12,210
0
0
0
0
0
0
0
0
0
0
0
0
11,875
37,790
407,000
33,980
37,375
0
0
0
167
0
1,505
0
5,450
0
15,363
0
23,116
341,845
37,427
0
19,544
0
9,111
0
4,083
0
2,540
0
3,513
35,108
31,596
114,456
322,632
485,433
2,050,338
1,127,816
410,430
191,325
85,751
740,840
53,334
Oct-Dec
Jan-Mar
Apr-Jun
Jul-Sep
Oct-Dec
Jan-Mar
Apr-Jun
Jul-Sep
Oct-Dec
Jan-Mar
Apr-Jun
2013
2014
2014
2014
2014
2015
2015
2015
2015
2016
2016
341,845
118,307 Provision
2,826,287
2,826,287
Annual
TOTAL
On-going
0
0
0
0
0
0
0
0
0
0
38,618
0
38,618
0
38,618
11,821
38,618
11,821
38,618
11,821
38,618
11,821
231,706
47,282
154,471
47,282
0
3,513
31,596
114,456
322,632
524,051
1,166,434
460,869
241,763
136,189
103,772
3,105,275
201,753
C) - Possible costs (income/savings)
One- off
Reduction - light vehicle fleet
Ongoing
Reduction - light vehicle fleet op costs
Net change - Elected Member expenses
Net change - CEO, Director, Executive positions
Net change - all other positions excl "growth" staff
increases
Totals - lower range
Potential
Borrowings - New
Debt Service - Annual P+I
Lost opportunities
Staff Housing - CEO and Directors
n/a
Totals - upper range
Oct-Dec
2013
Jan-Mar
2014
Apr-Jun
2014
Jul-Sep
2014
Oct-Dec
2014
Jan-Mar
2015
Apr-Jun
2015
Jul-Sep
2015
Oct-Dec
2015
Jan-Mar
2016
Apr-Jun
2016
Annual
On-going
TOTAL
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
(6,403)
13,023
0
(6,403)
13,023
0
(6,403)
13,023
0
(6,403)
13,023
0
(25,610)
52,093
0
(25,610)
52,093
0
0
0
0
0
0
0
15,541
15,541
15,541
15,541
62,165
62,165
0
0
0
0
0
0
0
22,162
22,162
22,162
22,162
88,648
88,648
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
(250,000)
0
0
0
0
(250,000)
0
0
0
0
0
0
0
11,250
0
0
0
33,412
0
0
0
0
0
22,162
0
11,250
0
0
0
33,412
0
0
0
0
0
22,162
(250,000)
22,500
0
0
0
(138,852)
0
22,500
0
0
0
111,148
13.1 (b)
Transition Budget - Agency
A) - Estimates for merger costs
Task
PROJECT MANAGEMENT
Project director & on-costs
GOVERNANCE & COUNCIL
Commissioners
Special/ Inaugral election
Delegations Register, Policy Manual and systems - align,
merge, new
Authorised Officers - Council & CEO appointments review, draft schedule
Integrated Planning Framework - align, merge all Plans
Local Planning Scheme, Strategy, Policies - align, draft
amendments
Local laws - revview/repeal, align, new
HR & WORKFORCE - SYSTEMS
Recruitment cost of new CEO
Recruitment costs for other positions
HR legal advice
HR industrial advice & support
HR consultant - specialist resources, change management
Staff training
HR systems
CORPORATE SERVICES
Contracts & leases - review, align, assign, amend as
needed
Documents - amend as required by external legislation or
organisation
COMMUNICATIONS
Website development
Internal branding
External signage
COMMUNITY ENGAGEMENT
Development of new corporate identity
Community consultation/communication
FINANCE
Financial management planning
Update existing data, systems, accounts
Finance systems integration assistance & support
Changes to financial systems
Grants Commission - detailed submission
RECORDS MANAGEMENT
Planning framework
Integration of systems
Data integration
OFFICE AND DEPOT ACCOMMODATION
Office refurbishment - design, engineering etc
Office refurbishment - fit out
Office extensions
Depot relocation - preparation, legal, cleanup
Depot relocation - design of expansion, engineering etc
Depot relocation - construction/ extension sheds, facilities,
workshop, chemical store
Depot relocation - fitout
INFORMATION & COMMUNICATIONS TECHNOLOGY
Communications system - modifications
Data link - 4 sites
CRITICAL - IT data - migration, merger
System hardware - integration, changes
ICT Planning / IT Project Manager
OTHER
Redundancies without redeployment
Other costs - 5% contingency
Total - Non-employment costs
DLGC
Joint
New Entity
Total
265,250
0
0
265,250
0
11,320
19,408
0
77,632
11,320
97,040
22,640
28,185
0
0
28,185
3,960
0
0
3,960
225,095
0
0
225,095
50,975
40,590
20,390
0
30,585
0
101,950
40,590
11,660
6,960
25,200
8,600
0
0
0
0
0
0
0
0
11,660
6,960
25,200
8,600
29,965
0
10,000
0
10,614
0
0
24,766
0
29,965
35,380
10,000
21,600
0
0
21,600
5,200
0
0
5,200
15,635
5,080
20,000
0
0
0
0
0
0
15,635
5,080
20,000
13,195
11,515
0
0
0
0
13,195
11,515
6,880
0
89,800
22,180
27,585
0
10,300
0
0
0
0
15,450
0
0
0
6,880
25,750
89,800
22,180
27,585
12,475
10,875
35,455
0
0
0
0
0
0
12,475
10,875
35,455
20,000
43,235
196,000
10,880
0
0
56,000
10,880
0
0
28,000
5,440
20,000
43,235
280,000
27,200
31,830
0
0
31,830
0
0
72,000
6,045
108,000
14,105
180,000
20,150
11,875
37,790
407,000
33,980
37,375
0
0
0
0
0
0
0
0
0
0
11,875
37,790
407,000
33,980
37,375
341,845
76,899
0
17,746
0
23,661
341,845
118,307
2,263,944
223,383
338,959
2,826,287
B) - Provision for on-going employment costs
DLGC
Ratchet up' costs to equalise non-contract employee
benefits
No redundancies full redeployment
Estimates for merger costs
C) - Possible costs / savings
One- off
Reduction - light vehicle fleet
Ongoing
Reduction - light vehicle fleet op costs
Net change - Elected Member expenses
Net change - CEO, Director, Executive positions
Net change - all other positions excl "growth" staff
increases
Totals - lower range
Potential
Borrowings - New
Debt Service - Annual P+I
Lost opportunities
Staff Housing - CEO and Directors
n/a
Totals - upper range
Joint
New Entity
Total
0
0
57,927
0
115,853
47,282
2,263,944
281,310
502,095
DLGC
Joint
New Entity
231,706 1.5 years
47,282 Amalgamtion year only
3,105,275
Total
Amalgamation Year only
0
0
0
0
0
0
0
0
0
0
0
(25,610)
52,093
0
0
62,165
62,165
0
0
88,648
88,648
0
0
0
0
0
0
(250,000)
0
0
0
0
(250,000)
0
22,500
0
0
0
111,148
0
(25,610) Initial
52,093 Initial
Initial
(250,000) Full, Total
22,500 Initial
0
0 Full, Year 1
0
(138,852)
13.1 (c)
Costs & Savings - Modelling Detail
parts (i)-(ix)
13.1 (i) - Consultancy - Rates
Type / Level
Specialist
Principal Consultant
Associate Consultant
Project Manager
Travel km rate
Travel distance
Accommodation & meals
Low
350
180
130
100
High
550
250
200
160
Average
450
215
165
130
0.74
180
130
1.25
250
200
1.00
215
165
Used
3,600
1,720
1,320
1,040
per
day
day
day
day
430
165
round trip
overnight
Provisions
Estimate
26,000
265,250
97,040
20,000
97,040
22,640
13.1 (ii) - Task Estimates
Activity
PROJECT MANAGEMENT
Project director & on-costs
GOVERNANCE & COUNCIL
Commissioners
Special/ Inaugral election
Delegations Register, Policy Manual and systems align, merge, new
Authorised Officers - Council & CEO appointments review, draft schedule
Integrated Planning Framework - align, merge all Plans
Strategic Community Plan
Workforce Plan
Asset Management Plan & processes
Road Condition survey
Long Term Financial Plan
Corporate Business Plan
Local Planning Scheme, Strategy, Policies - align, draft
amendments
Local laws - revview/repeal, align, new
HR & WORKFORCE - SYSTEMS
Recruitment cost of new CEO
Recruitment costs for other positions
HR legal advice
HR industrial advice & support
HR consultant - specialist resources, change
management
Staff training
HR systems
CORPORATE SERVICES
Contracts & leases - review, align, assign, amend as
needed
Documents - amend as required by external legislation
or organisation
COMMUNICATIONS
Website development
Internal branding
External signage
COMMUNITY ENGAGEMENT
Development of new corporate identity
Community consultation/communication
FINANCE
Financial management planning
Update existing data, systems, accounts
Finance systems integration assistance & support
Changes to financial systems
Grants Commission - detailed submission
RECORDS MANAGEMENT
Planning framework
Integration of systems
Data integration
OFFICE AND DEPOT ACCOMMODATION
Office refurbishment - design, engineering etc
Office refurbishment - fit out
Office extensions
Depot relocation - preparation, legal, cleanup
Depot relocation - design of expansion, engineering etc
Depot relocation - construction/ extension sheds,
facilities, workshop, chemical store
Depot relocation - fitout
Rate
Days
T&A
70
per
1,040
190
1,320
2
1,320
20
1,320
3
1,320
1,320
1,720
1,720
1,720
1,320
6
8
40
35
20
8
2
3
15
24
3
2
1,500
2,000
225,095
10,610
12,345
77,725
74,480
36,185
13,750
1,720
1,720
50
20
10
2
10,000
5,000
101,950
40,590
Advertising
Advertising
1,320
1,320
3,600
1,720
4
3
7
5
4
0
0
0
4,000
3,000
11,660
6,960
25,200
8,600
Advertising
Advertising
1,720
1,320
15
25
7
4
3
6mths@0.4FTE, 9@0.6, 3@0.2
WA Electoral Commission
28,185
3,960
10,000
29,965
35,380
10,000
Advertising
2 at 15 days each, 1 data entry 5 days
Advertising
Software etc
3,600
6
0
21,600
1,040
5
0
5,200
1,720
1,040
7
2
1
0
3,000
3,000
20,000
15,635
5,080
20,000
Incl. archiving, licences etc
Graphic design
Production
1,720
1,320
5
6
1
1
4,000
3,000
13,195
11,515
Graphic design
Advertising
1,720
1,320
4
15
10
6,880
25,750
1,320
1,320
1,720
50
15
15
40
4
3
89,800
22,180
27,585
1 detailed, 2 follow up
1,720
1,320
1,040
4
4
12
1
1
5
5,000
5,000
20,000
12,475
10,875
35,455
Software, equipment etc
1,320
2
1
3,600
2
20,000
40,000
280,000
20,000
20,000
43,235
280,000
27,200
Provision
Provision
Provision
1,720
12
2
10,000
31,830
Provision
1,320
3
2
180,000
15,000
180,000
20,150
Provision
Provision
INFORMATION & COMMUNICATIONS TECHNOLOGY
Communications system - modifications
Data link - 4 sites
CRITICAL - IT data - migration, merger
Town - 2011 conversion
Town - 2015 conversion
Shire - 2015 conversion & Excel extration
Shire - 2015 Quickbooks, RBO & FAO access
System hardware - integration, changes
ICT Planning / IT Project Manager
13.1 (iii) - Vehicles with private use
Light vehicle
1,320
1,320
4
5
1,320
1,720
Shire
1
2
5
20
Town
4
5
Combined
6,000
30,000
250,000
140,000
7,000
10,000
25,000
11,875
37,790
407,000
250,000
140,000
7,000
10,000
33,980
37,375
Hardware
Rec Centre, Library, Depot, Federal St
IT Vision
IT Vision
UHYHN
UHYHN
Hardware purchase
New Entity
No. of positions having private use of vehicle
2
5
7
Annual estimated - op cost
22,200
55,500
77,700
Increase (Decrease) in vehicles
0
0
0
Average value for vehicle sold
25,500
25,500
25,500
Possible one off receipts
0
0
0
Annual estimated saving - op cost
0
0
0
Note - Town currently has 6 vehicles with private use, one under review and resolved prior to amalgamation
7
77,700
Aust Tax Office rate
0.74 (c/km)
Average / vehicle / year
15,000 km
13.1 (iv) - Borrowings and Repayments
Purpose
Depot Relocation
Borrowed
250,000
Total
Term Yrs
20
Rate
5.85%
250,000
22,500
13.1 (v) - Potential
Possibility
Lost opportunities
Staff Housing - CEO and Directors
n/a
Annual P+I
22,500
Current No.
1
Amount
500,000
New Entity
Required
Cost
500,000
1
500,000
Value
500,000
Change
0
500,000
Note - Staff housing is not associated with amalgamation
13.1 (vi) - Commissioners
Position
Chair
Deputy Chair (local)
Members (local)
No.
1
1
3
Fee/Mth
3,500
2,500
2,000
June to October inclusive
13.1 (vii) SAT determinations
Annual Allowance
Band 4
Band 3
Band 2
Band 1
Annual Fee in lieu of Council / Committee Meeting
attendance fees
Band 4
Band 3
Band 2
Band 1
Council meeting fee - per meeting
Band 4
Band 3
Band 2
Band 1
effective
Months
5
5
5
No. weeks -
Fee
17,500
12,500
30,000
16
01-Jul-13
Mayor / President
Min
Max
500
19,000
1,000
35,000
15,000
60,000
50,000
85,000
Deputy - 25% of Mayor
Min
Max
125
4,750
250
8,750
3,750
15,000
12,500
21,250
President - Council elected
Min
Max
3,500
18,500
7,500
24,000
14,500
29,500
24,000
45,000
Councillors
Min
Max
3,500
9,000
7,500
15,500
14,500
22,000
24,000
30,000
President - Council elected
Min
Max
88
463
188
600
363
738
600
1,125
Councillors
Min
88
188
363
600
Max
225
388
550
750
Committee and Prescribed meeting fee - per meeting
Band 4
Band 3
Band 2
Band 1
All Elected Members
Min
Max
44
113
94
194
181
275
300
375
CEO Package
Band 4 - CEOs
Band 3 - CEOs
Band 2 - CEOs
Band 1 - CEOs
Min
125,079
154,045
201,433
244,232
Max
189,592
245,550
302,822
359,436
Travel
9,520
6,880
20,640
Total
27,020
19,380
50,640
97,040
for T & A, and to external mtgs
Value
0
0
13.1 (viii) - Employment Provisions
Shire
Employee costs a a % of Operationg cost
Actual 2020-2011
Actual 2011-2012
Actual 2012-2013
Budget 2013-2014
Per capita 2012-2013
Per Assessment 2012-2013
% Change 2010/2011 - 2013/2014
Employee
Costs
Operating
Costs
735,433
896,456
937,467
985,000
2,468,691
3,523,521
4,139,252
4,619,977
1,058
1,695
4,672
7,485
33.9%
Staff costs
Shire
Employee costs - 2012-2013 actual
Employees FTE (2013/14 estimate)
Adjustment / Vacancies
Total employees
Increase (reduction) in staff next 2 years
Likely establishment 1 July 2015
Cost per employee - All staff
Town
29.8%
25.4%
22.6%
21.3%
87.1%
Town
Total
937,467
18.0
0.0
18.0
1.5
19.5
52,082
3,636,986
56.0
0.0
56.0
4.0
60.0
64,946
4,574,453
74.0
0.0
74.0
5.5
79.5
61,817
Estimated CEO / Director costs
Number of positions
Cost per employee excluding CEO, Director
150,884
1
46,270
495,682
3
59,270
646,566
4
56,113
Estimated CEO, Direct, Mgr, costs
Number of positions
Cost per employee excluding CEO, Dir, Mgr
233,871
2
43,975
1,019,961
8
54,521
1,253,832
10
51,885
Estimated CEO, Dir, Mgr, Senior costs
Number of positions
Cost per employee excluding CEO,D,M,S
291,160
3
43,087
1,591,488
16
51,137
1,882,648
19
48,942
Shire
Estimated Current costs - SAT Band / Decile
CEO
Director / Executive Directors
Executive / Senior Manager
Manager / Section senior
EA/PA positions for CEO/ Directors
All other staff
TOTALS
Band
Decile
No.
1.0
0.0
1.0
1.0
1.0
14.0
18.0
CEO
Director / Executive Directors
Executive /Senior Manager
Manager / Section senior
EA/PA positions for CEO/ Directors
All other staff
TOTALS
Average - All staff
Note - Staff growth is not associated with amalgamation
"Ratchet up" scenario
Band
Decile
No.
1.0
3.0
6.0
8.0
4.0
57.5
79.5
Operating
Costs
3,545,764
4,020,707
3,636,986
4,542,804
7,325,480
7,464,619
7,566,396
8,376,499
844
1,728
1,756
3,594
28.1%
14.3%
Emp %
of Op Cost
48.4%
53.9%
48.1%
54.2%
Actual is better guage of average cost than Budget
CEMO, PA / Strat Plnr, Tech, Comm Serv
Total consistent with new entity
Town
4
4
Est. $
150,884
0
82,986
57,290
54,686
591,621
937,467
New Entity
Estimated Future costs - SAT Bands/Deciles
Employee
Costs
Emp %
of Op Cost
3
6
Est. $
208,948
470,133
626,844
568,716
267,049
2,843,579
4,985,269
62,708
Current
No.
2.0
2.0
6.0
9.0
4.0
51.0
74.0
Change incl "ratchet up"
3
4
Est. $
(132,583)
165,098
19,578
(60,100)
7,783
411,040
410,816
Band
Decile
No.
(1.0)
1.0
0.0
(1.0)
0.0
6.5
5.5
Consistent with
current Total
Includes cost
of "ratchet up"
Shire
Average
No.
Employees move up to the highest average benefit package that might apply
CEO
n/a
n/a
Director / Executive Directors
0
0
Executive /Senior Manager
1
82,986
Manager / Section senior
1
57,290
EA/PA positions for CEO/ Directors
1
54,686
All other staff
14
42,259
Totals
17
Total
3
4
Est. $
190,647
305,035
524,279
571,526
204,580
1,840,918
3,636,986
Band
Decile
No.
1.0
2.0
5.0
8.0
3.0
37.0
56.0
Est. $
341,531
305,035
607,266
628,816
259,266
2,432,539
4,574,453
Net
"Growth"
Positions
1.0
1.0
3.5
5.5
Potential Costs
Once Off
Redundancy
Annual
Staff
Redeploy
"Growth"
0
0
0
14,055
104,474
0
71,089
30,121
0
3,106
173,087
0
348,651
47,282
170,766
0
101,211
69,868
0
0
341,845
Positions
New "growth"
terminated
positions
Town
Cost to shift
to lower position
Total
No.
Average
No.
Ratchet Cost
n/a
2
5
8
3
37
55
n/a
152,518
104,856
71,441
68,193
49,755
n/a
0
1
1
1
14
17
n/a
0
21,870
14,151
13,508
104,942
154,471
On-going
13.1 (ix) - Elected members expenses
Shire
Adopted
2013-2014
Allowances
Mayor Annual Allowance
Annual Meeting - Council & Committees
ICT Allowance
President Annual Allowance
Meeting
Committee
Deputy President / Mayor Annual Allowance - Deputy President
Annual Allowance - Deputy Mayor
Councillors Annual - Council & Committees - 7 Crs
Meeting - 6 Crs
Committee - 6 Crs
Other authorised meetings ICT Allowance
Town
Interim
2014-2015
n/a
n/a
n/a
18,500
20,000
1,600
5,000
as for Crs
as for Crs
10,000
as for Crs
as for Crs
None
2,500
n/a
88
44
44
None
Adopted
2013-2014
Total
Interim
2014-2015
Adopted
2013-2014
Interim
2014-2015
96,336
36
151,225
57
169,100
64
24,000
17,000
as for Crs
n/a
n/a
n/a
175
100
100
600
4,625
6,000
8,500
n/a
n/a
None
500
8,500
n/a
n/a
100
600
Payments Actual 2012-2013
per assessment
Budget 2013-2014
per assessment
Travel and Other Payments/Reimbursements -
7,040
13
29,500
53
43,400
89,296
42
121,725
58
125,700
As determined by Act, Regulations or SAT, or by Council within the parameters set
New Entity
Applicable
to No.
Allowances
No. each
might claim
Band
Decile
Allowance
2015-2016
3
6
Total
2015-2016
As per CEO
President Annual Allowance
Annual Meeting Fee
Other allowances as per Councillors
1
1
1
1
21,400
12,500
21,400
12,500
Deputy President Annual Allowance
Other allowances as per Councillors
1
1
5,350
5,350
7
8
8
8
8
1
18
1
1
42
6,800
154
700
500
3,108
47,600
22,176
5,600
4,000
24,864
Councillors Annual - Council & Committees
Other authorised meetings
ICT Allowance
Travel (estimated) - minimum as per SAT
Travel (estimated) - at rate / km
Total
per assessment
Assuming 8 Councillors initially
Assume each Cr would attend 1.5 / month
Prescribed meetings claimed separately
Rate as per 12.6 (iii), allow 100km round trip
1 Council, 1 Com'tee, 1.5 Other mtgs/mnth
143,490
54
Note 1. As Band annual amounts and rates will increase in both 2014-2015 and 2015-2016,reductions in Cr Annual Meeting Fees are unlikely
13.2
Year
Pre-Merger Alignments
Town



















Align for January 2015
Align for January 2015
Align for January 2015
Commence
Commence
Commence
Relocate when appropriate
Implement in 2014-2015
Align for 2014-2015
Align for 2014-2015


Divest before 30 June 2014
In place


Implement by 30 June 2014
In place






Partial alignment to phase in
Full alignment
Full alignment
Comment
New Entity
Comment
Shire
Commence immediately Workforce Awards
Classifications
Pay scales
Delegations Registers
Policy Manuals
Planning policies
Single depot
Recycling in Town
Fire Control Order
Depreciation rates
Review of all areas for non-core or
optional activities
Review all areas for unsustainable level
of service
Adopt
Adopt
Adopt
Implement
In place
In place
In place
July 2015
July 2015
July 2015
In place
In place
In place
Single schedule
Include in Budget 2014-2015 Elected member allowances
General fees and charges
Refuse and recycling charges
Rates UV and minimums
GRV and minimums


Commence phase in
Commence phase in
Discontinue, or reduce by 50% as
phase in option
Adopt
Adopt
Adopt
Continue
Continue
Phased in
Phased in
Delete
Phased in
Adopt
Combine pro-rata to single
schedule
Discount

Incentive prizes


Implement incentives pro-rata


Appoint consultant in August 2014
Community Strategic Plan


Workforce Plan


Asset Management Plan


Long Term Financial Plan


Corporate Business Plan


Adopt as joint interim SCP by
November 2014
Prepare approved draft by January
2015
Commence 2015-2016
Commence after AM processes in
place
Commence, adopt as joint interim
CBP by April 2015


Complete as soon as able








Prepare
Prepare
Review / prepare
Review / prepare










Prepare - interim joint
appointments?
Prepare
Prepare
Review, prepare omnibus Scheme
amendment
Ready by 30 May 2015
Implement
Software migration / integration


Ready by 30 May 2015
Implement
Contracts, leases, agreements


Arrangement finalised early 2015
Road managment processes -


Appoint consultant in August 2014






Complete by December 2014
Complete by 31 March 2014
Complete by 31 March 2014
Contractor - Asset Management process
development
Single schedule
Single schedule
Single schedule
Continue
Full integration by 31 October 2015
Commence as able Integrated planning -
Local Laws All pre-1995 local laws Review/repeal
Standing Orders - Review
Fire Control - Review
Other Local Govt Act local laws
Other enabling Acts local laws
Authorised Officers Fire Control Officers – Chief, DCFCO
etc
Council appointments
CEO appointments
Joint Planning Scheme, Strategy,
Policies
Information Technology
Road condition survey
ROMAN data update / verified
MRWA road identification
Adopt
July 2015
Adopt
by 31 October 2015
Adopt
by 30 September 2016
Adopt
by 31 March 2017 or earlier
Adopt
Interim by June 2016, Final by June
2017
Completed
Adopt
Adopt
Adopt
Adopt
As soon as able
Essential - July 2015
As able
As able
Adopt
Essential - July 2015
Adopt
Approve
Defer
July 2015
July 2015
Process for amendment not to
commence until July 2015
Critical
Critical - Full conversion on 1 July
2015
Adopt
As able
MRWA
In place
Essential - In place
In place