Independent Peer Reviewed Business Case Study of Federation Council

Independent Peer Reviewed Business Case Videos

At an extraordinary meeting on Friday, July 14, 2023 Council resolved to appoint the Institute for Regional Futures (University of Newcastle) to undertake an independent peer reviewed business case study on the financial sustainability of Federation Council and the advantages and disadvantages of amalgamation. 

Council adopted the following terms of reference at its July meeting: 

  1. A review and commentary of the validity of the former Corowa Shire Council’s merger proposal submitted to the NSW State Government including all potential efficiencies and savings outlined in that report i.e $40M over 20 years.
  2. A review State Government’s KPMG report on the Corowa and Urana merger proposal including (but not limited to) a review and commentary on whether the efficiencies and savings outlined in that study and were achieved, and if not why not.
  3. A comparison of Council’s financial performance since merger as opposed to the combined financial performance of the Corowa and Urana Councils prior to merger.
  4. Analysis and provide commentary on the projected financial sustainability of the Federation Council from 2023 onwards including (but not limited to);

    (a) The circumstances leading to the current financial position of Council and

    (b) an investigation of various options for improving the situation – these options will include additional sources of revenue and changes to expenditure profiles.

  5. Whether, in accordance with section 263 (3) (e5) of the NSW Local Government Act, 1993 (the Act) there is a need (or desirability) to divide the Council area into Wards to ensure effective representation.
  6. Any other matters of section 263 (3) of the Act considered relevant
  7. Investigate options for engaging with NSW State Government to try to mitigate any issues identified.
  8. After completing TOR 1 to 7 investigate the need, timing and conduct of a potential special rate variation application.

Further information is available below and updates on this review will be provided as they become available. 

Community Meeting Video & Survey

For those community members who were unable to attend the public community meetings held on Monday 16 and Tuesday 17 October, 2023, Professor Joseph Drew prepared a video explanation.

What am I doing in Federation Council?

To provide an overview of the Institute for Regional Futures (University of Newcastle) prior to their arrival in Federation Council.

What are Financial Assistance Grants?

Each year councils across Australia receive an allocation of Financial Assistance Grants (FAGs). The NSW Grants Commission has estimated that Federation Council's allocation for 2023/24 will be $8.5 million.

Amalgamation Outcomes for NSW - The Evidence

Professor Joseph Drew has prepared the following video to provide further detail about amalgamation outcomes for NSW.

Average Rates are a poor comparison

Professor Joseph Drew has prepared the following video to explain why average rates are a poor comparison.

The most dangerous financial ratio

Professor Joseph Drew has prepared the following video to explain the most dangerous financial ratios.

Independent Review Update – Public Meetings

Council extended an invitation to its residents to attend public meetings in Corowa and Urana during October.

Invitation to hear the evidence and have your say

Professor Joseph Drew prepared the following video in relation to the public meetings scheduled in October 2023.

Independent Review Report & Recommendations Update

Council noted Professor Drews report 'The Advantages and Disadvantages of Amalgamation and Federation Council’s Financial Sustainability' and recommendations at the November Council Meeting.

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