• The council does not satisfy the scale and capacity criterion.
• Scale and capacity is a threshold criterion which councils must satisfy to be Fit for the Future (FFTF), therefore the council is not fit.
• The council satisfies the financial criteria overall. It satisfies the sustainability, infrastructure and service management and efficiency criteria.
Scale and capacity – does not satisfy
• The council’s population is declining and is forecast to be 5,800 by 2031. Our analysis suggests the council has insufficient scale to deliver services cost-effectively for its community and to partner effectively with Government.
• The council also does not demonstrate it meets the elements of strategic capacity.
• Therefore the council’s proposal to stand alone does not satisfy scale and capacity.
• The council rejected a proposal to merge. The council and Cootamundra identify the Bethungra range as a topographical physical barrier between the communities, which they consider reduces the potential scale benefits. The council also cites different regional focuses between the councils.
• The council held meetings with Temora, Coolamon, Wagga Wagga and Gundagai. The council considers the meetings were productive as there was a renewed commitment towards sharing plant and resources, but ultimately each council decided to stand alone.
• We do not have sufficient evidence to evaluate the costs and benefits of the merger option compared to the stand-alone proposal. However, the merger may enable the provision of more cost-effective services to the local communities, advocating credibly and managing strategic issues in the region.
Sustainability – satisfies
• The council satisfies the criterion for sustainability based on meeting the benchmarks for the operating performance ratio, the building and infrastructure asset renewal and the own source revenue ratios by 2019-20.
Infrastructure and service management – satisfies
• The council satisfies the criterion for infrastructure and service management based on meeting the benchmarks for the infrastructure backlog, asset maintenance and debt service ratios by 2019-20.
Efficiency – satisfies
• The council satisfies the criterion for efficiency based on a decline in real operating expenditure over the period to 2019-20.
Other relevant factors
Social and community context
The council and Cootamundra Shire Council identify the Bethungra range as a physical barrier between the communities. Further, the council notes that it has a south and southwest focus compared with Cootamundra Shire Council’s north northeast view of the region.
Community consultation
Junee undertook a self-select community survey that was open to the public between March and June 2015. The council provided FFTF information to the public prior to and during the survey period, through various avenues. The council notes the survey questions response (260) was below the number valid for statistical sampling (350), but is unlikely to change with additional respondents. We note that 73% would prefer a JO over a merger, and 69% are opposed to merging.
Water and/or sewer
Goldenfields Water County Council provides potable water to the area. The council is responsible for the sewerage network. The council does not currently achieve the requirements of the NSW Government Best Practice Management of Water Supply and Sewerage Framework. The sewer business does not currently operate on a break-even basis. The council notes that it decided to freeze sewerage charges for its community for the period 2014-15 to 2016-17 to ease the impact of a successful SV for the general fund.
Submissions
There were no submissions received in relation to Junee’s proposal.