In the announcement of the proposed merger the Government states:
Comment: When Council asked for a breakdown of those benefits it was advised that the detail would be provided in January ’16.
Comment: That means the 7.5% rate increase above rate-pegging planned by Shoalhaven City Council for both the years of 2017/18 and 2018/19 to meet the ‘fit for the future’ criteria will NOT happen.
That equates to over $21 million revenue (cumulative over this four year period) that will NOT be raised and spent on providing services and infrastructure renewal and maintenance.
Comment: The Government estimates that the cost to implement a merger will be around $5 million. This leaves $10 million which will partly offset the “lost” revenue as mentioned above.
Comment: It is hoped the details of how the $3.4 million has been calculated will be released in January. It could be assumed that the calculation is based on estimates of:
Less Councillors - $500,000 saving (estimate)
Less Senior staff & 1 GM - $1M to $1.2M saving (estimate)
Other staff savings and less overheads - $1.7M to $1.9M saving (estimate)
For further information and comparisions see our "Fit for the Future" page