A review of funds spent by Riverina councils has shown Cootamundra-Gundagai to be spending most of its rates on staffing.
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Figures from the 2016 to 2017 budget show the merged council is spending $12 million on wages – after receiving $12.8 million in income from rates and user charges.
It means 94 per cent of income goes to staff before capital funding grants and is the highest in the region.
In May, Cootamundra-Gundagai mayor Abb McAlister said the council should avoid relying on capital grants to balance its books.
Elsewhere, Leeton’s council spent 85 per cent of rates on wages and Griffith spent 72 per cent.
During the final 11 months of Cootamundra as a separate council, from July 2015 to May 12, 2016, 72 per cent of rates income was spent on staff. In Gundagai, that ratio was 78 per cent.
Former Cootamundra Shire Councillor Rod Chalmers wasn’t surprised as he said only a third of council’s costs were covered by rates.
“The rest of the money has to come from grants and other sources,” Mr Chalmers said.
“Juggling finances of council are tricky, a lot of the grant money you get is tied to those projects.”
For larger centres like Wagga, which spent 67 per cent of rates income on staff, they had opportunities to make money from airports and others services.
He said money raised from services including sewerage, garbage and water was often quarantined to only be reinvested in those services by state government regulations.
While the budget council spends on providing services can be adjusted, changing staff numbers is off-limits to councillors.
“Councillors don’t have anything to do with staffing, it’s completely the domain of the general manager,” Mr Chalmers said.
“When councils are merge, they’ve got to harmonise the wages and the rates across the two councils.”
Mr Chalmers said the challenge for council would be whether additional staff were needed to help deliver projects funded through merger money.
As well as the significant grant funding from the state government, a merged council cannot reduce their staff numbers for three years.
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Declan Rurenga
Declan Rurenga was the editor of Griffith's Area News and Leeton's Irrigator until September 2023. Before landing at the Murrumbidgee Irrigation Area, he reported news in Junee, Wagga Wagga, Orange and Cootamundra.
Declan Rurenga was the editor of Griffith's Area News and Leeton's Irrigator until September 2023. Before landing at the Murrumbidgee Irrigation Area, he reported news in Junee, Wagga Wagga, Orange and Cootamundra.
