After union backlash and an eleventh hour change, Hilltops Council has approved a range of measures in the hopes of regaining financial stability and sustainability going into the future.
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The measures were voted on at council's meeting on October 27, following an emergency discussion with the United Services Union earlier in the day who sought clarification over the recommendation.
The recommendation included:
(a) Authorise the General Manager to implement an immediate recruitment freeze allowing only for recruitment of essential positions;
(b) Commence a review to minimise the use of consultants and contractors to maximise internal efficiency and contain costs;
(c) Commence a formal consultation process with local government unions and staff to consider options that would allow a reduction in total employment costs, in a manner consistent with clause 41 of the Local Government (State) Award 2020;
(d) Commence discussion with the community regarding levels of service within Council's policies and financial limitations;
(e) Immediately identify assets suitable for divestment purposes for Council to consider in a confidential report; and
(f) Following the Local Government elections, immediately commence discussions regarding the consideration of a Special Rate Variation (SRV) to be enacted in the 2024 financial year.
General Manager, Anthony O'Reilly, said there had been some tweaks to the recommendation following the meeting with the Union and financial sustainability has been an "ongoing and pressing issue".
The previous recommendation called for an "immediate staff and wage freeze" and a "staff cost reduction equivalent of up to 30 per cent of total council wages".
"They [the union] are satisfied... these are appropriate motions," he said.
"These are some of the measures that need to be considered and appropriately implemented at the time to make sure we have enough cash."
Councillor Tony Flanery said it was "regrettable" council had found itself in this position, noting legacy issues stemming from the Hilltops administration following amalgamation a few years ago.
"I think it's quite sad actually that such a prosperous, agricultural area is in this state of affairs," he said.
"Some of it isn't our doing, some of it is our doing. Fixing it is the aim of the game."
Cr Brian Ingram urged the community to not speculate and laid the blame squarely on the former administration.
"We got here because people were appointed to positions who didn't have the skill set to fill those positions, then other people were employed by those people who also didn't have the skillset," he said.
"I hope after tonight the community realises we're just not real nasty people and say no for something to do, the reason that assistance cannot be provided or services is we don't have the financial capability to do it.
"The fact is if nothing happens in the next 12-18 months, the cash is gone.
"If we haven't decided to take some strategies on board to address our financial sustainability, then the GM will have no other choice but to report to Office of Local Government (OLG) the financial situation of council in full.
"Then it will be up to OLG and ministers of the state to decide the fate of our council."
Cr John Horton said councillors are going to have to make "very hard decisions".
"The reality is, unless we make the hard decisions now... we'll become bankrupt and then we will go into administration," he said.
"The good news is, it's not too late to turn around our financial position.
"If we support decisions now, two to three years our bottom line should turn from red to black."
The SRV split opinion amoung the councillors, with a general agreement that any decision would fall on the newly elected council following local government elections.
Cr Chris Manchester said the situation was "a hard one to stomach".
"There's going to be a whole new council in January, which makes it quite difficult for the GM to take this forward," he said.
"If it needs to be done, we need to do it, but I think a report needs to go to the new council of how we've got to the situation we are in.
"You can't fix it if you don't know where you went wrong to start with."
While Cr Greg Armstrong said the SRV was their only way forward.
"The only way forward for us is going to be a SRV to generate the dollars we are going to need for council to get itself out of the hole that it's in," she said.
"It pains me to have to say it, if there is any way that we could apply for a SRV now we should do it.
"Because at least we would be giving the new council an opportunity to say yes or no, but to do nothing and deprive them doesn't sit very easily with me."
While Cr Rita O'Connor said their focus should be on short term achievable goals.
"We should pare back our operations so we are doing roads, rates and rubbish, the real essentials," she said.
"Make sure we are applying fees and charges, where in the past they haven't been applied, make sure people are paying for services that are rendered."
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