Brian Hood

In recent days the mayor of the City of Yarra has floated the prospect of amalgamation with neighbouring councils in order to address his council’s financial struggles. In essence he is seeking a larger, more efficient organisation with economies of scale.

His attempt to stimulate a mature discussion has elicited a range of reactions.

If you accept that the role of a Council is to provide good governance in its municipal district for the benefit and wellbeing of the community by providing a range of services and infrastructure ;

And if you accept that councillors are obligated under the Local Government Act to

  • Give priority to achieving the best outcomes for the municipal community, including future generations;
  • To promote the economic, social and environmental sustainability of the municipal district, including mitigation and planning for climate change risks :
  • To engage the municipal community in strategic planning and strategic decision making;
  • To pursue innovation and continuous improvement : 
  • To collaborate with other Councils and Governments and statutory bodies :
  • To ensure the ongoing financial viability of the Council ;
  • And to ensure there is transparency of Council decisions, actions and information.

Then surely it is in the best interests of the community that all options be considered when it comes to the delivery of much-needed services and infrastructure.

In the case of Hepburn Shire the adopted ten-year financial plan indicates that there will be no cash available to fund the construction of new assets; no cash available to make co-contributions to grants; and recovery works following natural disasters will be limited to whatever disaster recovery funding is received.

In order to address Hepburn’s short term cash constraints services were reduced and rates increased well beyond the cap.

But are rate increases and further service reductions the long-term answer ?

I think not.

And if a council doesn’t have the capacity to create new assets, is struggling to maintain existing assets, can’t provide the full range of services its community needs, can’t co-contribute to grants and has limited capacity to respond to disasters is it really viable ?

I think not.

With only 12,000 rateable properties spread from Clunes to Trentham, and multiple population centres in between, the financial sustainability of Hepburn Shire Council must be seriously questioned.

The substantial underlying deficits incurred in recent years simply can’t be sustained and are indicative of a major structural problem.

In the best interests of our numerous communities it is time for a sensible, mature discussion between Council, the community and the state government on the optimal delivery of services and infrastructure.

This commentary is intended to stimulate proper discussion and is the personal view of Cr. Brian Hood.