Five years after its amalgamation, Minister for Local Government Wendy Tuckerman has announced Cootamundra-Gundagai Regional Council (CGRC) will demerge.
Key points:
- Following "a complex decision", the amalgamated Cootamundra-Gundagai Regional Council will demerge
- The two NSW councils were merged by the state government in 2016
- The merged council has faced ongoing financial and staffing issues
Mayor Charlie Sheahan says it's a "great relief" and has congratulated the minister on her decision.
"Our communities have really struggled with this merger from the outset and our staff will go through another period of uncertainty. But, overall, the decision is correct and is what our community wishes," he said.
"It's taken a lot out of all of us and hopefully we can set a good path for the future."
CGRC was formed in 2016 as part of the New South Wales government's forced amalgamations of local councils.
Ms Tuckerman said it was "a complex decision" made after considering the recent reports published by the Local Government Boundaries Commission (LGBC).
She said her decision was based on the merits of the council's proposal and the subsequent recommendations and examination by the independent commission.
"There are countless examples across the state of amalgamated councils performing strongly by lowering costs and delivering better infrastructure and services for residents," Ms Tuckerman said.
"It is disappointing that CGRC has not been able to achieve this outcome."
She says further announcements about the next steps will be made but anticipates council elections for the de-amalgamated shires will be held in line with the local government general elections in September 2024.
Mr Sheahan said he offered the council's support and resources to help the demerger planning process. He does not think it will be difficult.
"Division isn't that difficult because a lot of the structure has been kept in place because of the geographic distance of the two communities," Mr Sheahan said.
A long time coming
Since the Cootamundra and Gundagai councils were merged, there have been financial and staffing issues, which were detailed at LGBC public hearings in July.
Over the five years to June 2021, total spending exceeded the council's original adopted budget by $15.8 million.
An independent report last month made 17 recommendations to improve the organisation's monetary position.
But, Mr Sheahan says the council now has a better understanding of its issues.
Member for Cootamundra Steph Cooke said the wait was "totally worth it". She will have "more to say soon".
"Thank you so much to Minister Tuckerman and the Premier, on behalf of the communities of Gundagai and Cootamundra," she said.
Mr Sheahan is urging the community to be patient while these problems are sorted out.
"We still have the problems of finances and delivering services to the community and we have been through a period where we've struggled with budgets," he said.
"For want of a better word, we've maxed out the credit card and there's going to be a period … [where] we've got to tighten the belts and reign this back in.
"But we did point that out to the minister that it would be far easier to do where you're just representing one community rather than the two with the bickering over who's getting what."