Transition auditors Frank Vincent and John Watson have recommended that Sunbury’s planned split from Hume be abandoned.
The auditors’ report, presented to Local Government Minister on August 28 and released to the public on Thursday, said there were too many concerns about the new council’s viability.
‘‘It is the view of the transition auditors that the separation of Sunbury from the municipality of Hume at this time is so problematic that it should not proceed,’’ the report said.
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Mr Vincent and Mr Watson were appointed by the Labor government in March with a brief to review the separation processes, after the former Liberal government gazetted formal notices that a new Sunbury council would start on July 1 this year.
The split was put on hold after Ms Hutchins said too many questions remained unanswered.
Real risk of substantial rate rises
The report said there was a ‘‘real risk’’ that rates in a new Sunbury municipality would substantially increase for many years to come, or types and levels of services ‘‘will be significantly impacted’’.
It said any savings that could be achieved through innovative service delivery would provide an insecure base for a decision about the viability of the proposed municipality.
‘‘The obvious risk, based on the history of the Sunbury area, that the population growth projected and which proponents of separation argue would provide an adequate revenue base for a new municipality, may not be achieved for a substantial and indefinite period,’’ the report said.
‘‘Further, if reasonably rapid and early growth and development did occur, it would of course involve significant cost and the demand for increased infrastructure and support.’’
The report said a proposed cross-subsidy from Hume council to Sunbury would constitute ‘‘a substantial shift from the well-established principle of local government that councils are to operate on the rate base generated within their municipal boundaries’’.
‘‘Splitting liabilities, intangible and movable assets and staff by 23.6 percent to Sunbury and 76.4 percent to Hume, as provided in the current order in council [gazetted by the former Liberal government], would not be appropriate or equitable in the circumstances.’’
The auditors said abandoning the planned split would protect ratepayers from large annual rate increases and service level reductions, and ensure planned capital works, including a global learning centre, would be delivered.
‘‘It is consistent with long-term public policy objectives across the sector to support larger, more sustainable and efficient council structures,’’ the report said.
‘‘If they occur, projected population increases would place Sunbury in a better position at some time in the future to support a council from its own rate base.’’
Community engagement
The auditors urged Ms Hutchins to ask Hume council to review its community engagement process to address concerns raised regarding a perception of disadvantage in Sunbury.
Last week, Opposition Leader Matthew Guy promised the town would get its own council under a Liberal government, regardless of the outcome of the review.
Ms Hutchins said she would carefully consider the recommendations before any decisions were made.
“We want the best outcome for the residents of Sunbury and Hume.
“Unfortunately the previous Liberal government did not share the same concern.”
