WINDOURAN SHIRE COUNCIL AND CONARGO SHIRE COUNCIL MERGER

Conargo Shire Council

Following an inquiry conducted in early 2001, the former Windouran Shire Council and Conargo Shire Council proceeded with their merger.

The new Conargo Shire Council was proclaimed in April 2001 and commences operations on 1 July 2001.

The proposal

The councils have jointly proposed a voluntary amalgamation of the two councils to form a single administration. The area of the proposed amalgamated council comprises the sum of the area of the two councils, in total 8748 square kilometres. Both councils currently maintain administration offices, chambers and works depots in Deniliquin.

The primary basis of the merger proposal is future financial viability, a critical issue to be faced by many small rural shire councils. Following a public inquiry into the financial viability of Windouran Shire Council, in February 2000 an Administrator was appointed to restore the Council to a reasonable financial position and enter into merger negotiations with Conargo or Deniliquin Shires or both.

The councils' proposal for amalgamation includes a preliminary analysis by the Councils which has identified the main advantages and disadvantages of the merger to the Communities of both council areas. These are as follows:

Advantages

(i) More efficient and effective use of the combined resources of both Councils in
providing local government services. This will be achieved through:

• better use of the combined staff pool and the ability to minimise future staff
  increases as a result of the growing demand for additional staffing resources
• rationalisation of office, depot, workshop and store facilities and plant and
  equipment
• reduced cost of key functions and systems such as records, Information
  Technologies, payroll, purchasing, financial management and costing
• reduced cost of organisational reporting, procedures and regulatory requirements such as Corporate and Management Plans, financial reports, Occupational Health and Safety procedures, environmental monitoring and reporting and other reports to State and Commonwealth Governments
• reduced cost of governance through a reduction in the total number of
  councillors
• salary savings in senior staff positions.

(ii) A larger resource base helping to reduce financial and business risks.

(iii) Integrated service provision across the total area achieving economies of scale, particularly in respect of development control, regulatory services, land use
planning and community services.

(iv) Acknowledgment and formalisation of the community of interest between the
two areas.

(v) A single focus and input on economic development and tourism promotion for
the combined area.

Disadvantages

(i) Transitional costs for the integration of the two organisations, including:

• management of the integration process
• integrating the organisation structures and fitting staff into positions
• systems integration
• any voluntary redundancy costs. (There is a government commitment to not allow forced redundancy of staff until after three years of the new Council)

Full copy: Inquiry into Proposed Voluntary Amalgamation of Conargo and Windouran Shire Councils - March 2001
http://www.dlg.nsw.gov.au/Files/CommissionsTribunals/bwc5.pdf (pdf 64kb)