Federation Council’s financial position has been strongly defended following claims by ratepayer Derek Schoen that council is “a basket case” and “broke”.
The former Corowa Shire councillor addressed council on the Monday evening before council’s monthly meeting on June 25.
“I think it’s important to show the rate payers why this council is on the brink of administration as acknowledged by the mayor in Mulwala,” he said.
“Federation council is recognised as a basket case by local government in NSW and this motion (about a three-question poll at this September’s election regarding Federation Council) will reinforce that.”
Mr Schoen accused Federation Council of wasting the financial assistance given to council for amalgamation (Corowa and Urana Shires in 2016) to then ask ratepayers to vote if council should get additional funds when the Government is asking all departments to curtail spending.
“This is about as informative as asking rate payers if they like their eggs sunny side up,” he said.
“Forced amalgamations are never what is wanted but how it is actioned is ultimately what is delivered - the hostile approach of the Federation leadership has ensured failure.”
A swipe was then taken by Mr Schoen at an agenda item for council’s June meeting that council agree to allow an amount of $40,000 to conduct a three-question poll of residents (see separate story) on election day.
“Basically, councillors you’re broke so to expend money in this manner will display to OLG and IPART how out of touch with reality you are,” he said.
“So, councillors as dumb as this motion is I urge you to vote ‘yes’ and show NSW why Federation is a basket case.”
The response
At council’s June meeting, when it was Jo Shannon, the deputy general manager/chief finance officer’s turn to deliver her monthly report, deputy shire mayor Shaun Whitechurch asked her to comment on the address by Mr Schoen and council’s commitment to depreciation allowance – for the benefit of the public.
Ms Shannon said council’s financial performance, coming into the 11th month of financial year 2023/24 is on track; that council has a budget of just over $50 million, with a lot of revenue coming into council and a lot of expenditure going out, and that council does not spend money if it’s not budgeted.
“There’s money in the bank to pay bills, staff and to pay creditors,” she said. “Council is not broke. We have funds for our financial responsibilities and commitments, we’ll continue to manager our funds well - as long as we stick to our budget.” Councillors applauded Ms Shannon.
Council’s General Manager Adrian Butler said it was easy for anyone to say any council is technically broke.
He said Federation Council is spending $14 million on depreciation. “If we didn’t spend that, we’d have millions of dollars in surplus,” Mr Butler said.
He did not criticise any previous councils in any local government area but pointed out that not much money was budgetted for in respect of depreciation. “We want to fix our assets – not leave a bad legacy for future councils and generations,” Mr Butler said.
“For someone to say we’re broke – it’s just not the case.”
Mr Butler said all council documentation related to the budget is so detailed. “Our staff can’t believe just how detailed our budget information is,” he said. A look at any monthly council agenda will prove that.
Cr David Longley expressed anger and disgust at Monday evening’s address, labelling it libellous and worthy of legal action. “I think we should investigate it. Let him get away with it? No.”
Mayor Pat Bourke described Mr Schoen’s comments as “reckless – so uneducated and uninformed, and so far from the truth it doesn’t matter”.
“We all know council is going well,” the mayor said and referred to many major projects, exampling the multi-million well over $10 million saleyards redevelopment and aquatic centre projects and how well they were all well managed.
“I think we’re doing extremely well. Yes, we’re going to get the knockers,” he said and added that Professor Drew delivered an endorsement of council’s position and direction.