Facts and Comparisons- Merger Proposal > Shoalhaven City Council

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Facts and Comparisons- Merger Proposal

In the announcement of the proposed merger the Government states:

  • “$53 million total financial benefit over 20 years and $7.2 million improvement in annual operating result over 10 years”

Comment: When Council asked for a breakdown of those benefits it was advised that the detail would be provided in January ’16.

  • “For four years after the merger, the Government’s policy is that rates will be frozen at existing paths”

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.

  • “The NSW Government will provide $15 million to meet merger costs and provide a head start on investing in services and infrastructure that savings from the mergers will ultimately support”

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.

  • “A stronger balance sheet to meet local community needs & priorities including average annual savings of $3.4 million generated by the merger from 2020”

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

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