Following the release of the state government’s merger proposal document on Wednesday, Kiama Mayor Brian Petschler expressed concerns Kiama could have little representation compared to the Shoalhaven with respect to number of councillors. 

He also believes the proposal document contains “significant errors”, and the Kiama community will put up “one hell of a fight”.

Cr Petschler said the Kiama municipality could be “appallingly” under-represented.

The report notes that Kiama Municipal Council currently has nine councillors, 21,314 residents (as of 2014), at a rate of 2368 residents per councillor.

Shoalhaven has 13 councillors, 99,016 residents and 7617 residents per councillor. 

Fifteen elected councillors is the maximum number currently permitted under the NSW Local Government Act.

“With less than 20 per cent of the population of the amalgamated area, we would expect to have one or two councillors at most,” Cr Petschler said. 

Cr Petschler said Kiama had a “special character”, distinct from adjoining council areas, and that service quality within the municipality would suffer under a merger.  

“To suddenly see that character lost would be a tragedy for the Kiama municipality,” he said.

The proposed mergers – announced a week before Christmas – would also see Wollongong and Shellharbour city councils become one.

Last October, NSW Local Government Minister Paul Toole released a report from the Independent Pricing and Regulatory Tribunal, which showed just 52 of 139 councils were financially fit.

Councils were assessed on their ability to be fit in the future, with Shellharbour and Kiama failing to meet the government’s financial target.

Kiama council believed the long-term financial and social gain to result from the completion of the Centre of Aged Care Excellence was not properly considered by IPART.

On Wednesday, Mr Toole referred the state government’s 35 council merger proposals to the Chief Executive of the Office of Local Government (OLG) for examination and report under the Local Government Act.

The Chief Executive of OLG will assign the examining and reporting on each merger proposal to delegates.

Delegates’ reports will go to the Minister, as well as the independent Local Government Boundaries Commission, which will comment on each report.

The Minister will consider the delegates’ reports and the comments of the Boundaries Commission before determining the outcome of merger proposals.

An Illawarra MP wants the body overseeing planned council mergers to poll Shellharbour and Kiama residents to determine the “extent of the feeling in both communities”.

Parliamentary secretary for the Illawarra Gareth Ward has previously voiced opposition to his government’s council amalgamation plan.

A clause in the Local Goverment Act states the Boundaries Commission can request the Electoral Commissioner, a council, an individual, or an organisation to conduct an opinion survey or poll regarding boundary changes. The process wouldn’t be compulsory, instead residents and ratepayers would be invited to participate. 

The commission must agree to undertake a survey.

“I think this is an exceptionally good way of gauging public opinion and feeling,” Mr Ward, who is also Kiama MP, said. 

Mr Ward said after talks with Illawarra mayors, he had made a request to both the Minister and the Premier to meet with the region’s mayors on the merger proposal. 

The government’s merger proposal document states that analysis by KPMG shows the new council has the potential to generate net savings to council operations of $38 million over 20 years.

According to the government’s proposal, the merged council has the potential to provide benefits including:

*A $53 million total financial benefit over a 20-year period that may be used to deliver better community services, enhance infrastructure and/or lower rates.

*State government funding of $15 million to meet merger costs and provide a head start on investing in services and infrastructure that the savings from mergers will ultimately support;

*Greater efficiencies through the removal of back office and administrative functions, increased purchasing power of materials and contracts, and reduced expenditure on councillor fees, all of which are expected, on average, to generate savings of around $3 million every year from 2020 onwards;

*Greater capacity to effectively manage and reduce the $48 million infrastructure backlog across the two councils by maintaining and upgrading community assets;

*Reducing the reliance on rate increases through SRVs to fund local community infrastructure projects and services. 

Kiama Mayor Brian Petschler said from preliminary reading of the proposal document, he was “astounded at some of the inaccuracies in it” and believed it was hurriedly written.  

“On page 10, the document puts Kiama’s Special Rate Variation as 29 per cent cumulative over three years from 2018-19, and Shoalhaven’s at 15.9 per cent cumulative over a two-year period from 2017-18.

“The correct figure, as included into Kiama’s Fit for the Future proposal was a SRV of 17.4 per cent cumulative from 2018-19 over a three-year period (9.7 per cent above the rate peg limit) and Shoalhaven’s at 21 per cent cumulative over a two-year period (15.9 per cent above the rate peg limit). 

“The proposal document discusses the distinct differences between Kiama and Shoalhaven LGA’s economies and socioeconomics, and yet ignores them by proceeding with this proposal.

“It shows that an understanding of our unique area is extremely limited.

“The proposal is touting a $53 million saving over 20 years. It might look good on paper, but what does this actually mean for the high standard of services and facilities Kiama provides? What services and facilities are going to be affected?

“They’ve also indicated that there’s only one retirement village or aged care facility in this municipality, which is incorrect.”

Cr Petschler said in the meantime it was “full steam ahead” for council staff.

“In a sense it’s distracting, but council’s work goes on in the background, and will continue to go on,” he said.

“We have a budget in place for the rest of the year, and will be planning a budget for the following year… Hopefully in the submissions we will make to the inquiry, we will survive and be left alone.”

He also praised the Kiama community’s vocal response in opposition to the proposal. 

“What the state government have also not seriously considered is the level of community support we have here in Kiama.

“People here care about their municipality, and they care how their area is run. Our community is going to put up one hell of a fight.” 

Members of the public can make written submissions and attend public inquiries, with details for the latter to be confirmed. 

Submissions are now open and will close on February 28 at 5pm.

Written submissions can be made at www.councilboundaryreview.nsw.gov.au or by mail: GPO Box 5341, Sydney, NSW, 2001. 

The proposed merger is due to be discussed at two special meetings in Kiama next Tuesday evening.

Council will host an extraordinary meeting at 5pm on Tuesday, January 12 at The Pavilion, during which councillors will formally consider council’s response to the state government’s proposal.

A public meeting organised by a range of key local community leaders to discuss the issue will follow at 6pm.

Residents can also sign council’s official petition available at various locations throughout the municipality.